In one to two sentences, explain why borrowing costs would be higher with indirect financing versus direct financing.

Borrowing costs would be higher with indirect financing because it involves intermediaries such as banks or financial institutions who charge higher interest rates or fees, increasing the overall cost of borrowing for borrowers.

Borrowing costs are generally higher with indirect financing compared to direct financing because indirect financing involves intermediaries such as banks or brokers who charge fees and interest rates, leading to increased cost for borrowers.

Borrowing costs are typically higher with indirect financing compared to direct financing due to the involvement of intermediaries such as banks or financial institutions, which adds additional layers of fees and interest charges to the lending process.