Borrowing cost would be higher with indirect financing compared to direct financing because indirect financing involves intermediaries such as banks or financial institutions which charge additional fees or interest rates for their services, thus increasing the overall cost of borrowing.
Borrowing cost is typically higher with indirect financing compared to direct financing because in indirect financing, intermediaries such as banks or leasing companies are involved, adding additional layers of fees and interest charges. To confirm this, one can compare the interest rates, fees, and charges associated with direct and indirect financing options, and calculate the total cost of borrowing in each case.
Borrowing costs are typically higher with indirect financing compared to direct financing because indirect financing involves intermediaries such as banks or financial institutions who add their own fees and charges to the loan, increasing the overall cost for the borrower.
