To lend or not to lend – When to say yes — or no — to a high-tech business
Abstract: The demand for innovative, high-tech products is rapidly growing — and lenders can ride on the coattails of this high-growth sector. But, as with any borrowing arrangement, they must fully grasp the nature of applicants’ businesses when deciding whether to approve loans. This article explains how lenders can ensure their loan approvals are well founded by, among other things, conducting extensive research, requiring full documentation and having a monitoring plan in place. A sidebar suggests some important questions to ask when evaluating a loan application from a technology-based company.