Question

jerome needs funding to help start a business selling school supplies. he uses a website that connects him directly with a lender who charges a below-market interest rate.
what type of financing resource is jerome using?

○ commercial lending

○ peer-to-peer lending

○ trade credit

○ factoring

Explanation:

To determine the financing resource Jerome is using, we analyze each option:

• Commercial lending: Typically involves banks or financial institutions, not direct individual - to - individual via a website.
• Peer - to - peer lending: Matches borrowers directly with lenders through online platforms, often with competitive (like below - market) interest rates, which fits Jerome's situation of using a website to connect directly with a lender.
• Trade credit: Involves credit from suppliers (e.g., getting goods now and paying later), not relevant here.
• Factoring: Involves selling accounts receivable, not direct lending.

Answer:

B. Peer - to - peer lending