The difference between traditional lending and capital lending

The difference between traditional lending and capital lending is as follows: 1. Capital lending, also known as capital lending, refers to a loan that can increase the borrower's capital. It is divided into loans that only rely on the credit of the borrower without paying collateral and loans that do not transfer possession.

A loan obtained with collateral.

2. Traditional Lending When lending to borrowers, banks and other creditors charge a usual interest rate based on their credit analysis.

Borrowers may use some form of collateral to obtain a loan.