Final answer:
There are two main reasons why banks are better for business loans than family and friends: the professional lending process and the resources and experience of the banks.
Step-by-step explanation:
When it comes to business loans, there are two main reasons why it is better to go to banks instead of family and friends. Firstly, banks offer a more professional and formal lending process.
They require borrowers to fill out forms regarding income sources, conduct credit checks, and may even require collateral or a cosigner for the loan. This ensures that the loan is properly structured and reduces the risk for both parties involved. Secondly, banks have more resources and experience in evaluating loans.
They have access to financial information and can analyze a borrower's financial history, making them better equipped to assess the risk and determine whether the loan should be approved or not.