n Management Today - The balancing act of funding technology innovation in the SMME and BEE entrepreneurial regimes




Funding a project or business is always a challenge to both the borrower and the funder because their expectations are often incongruent to one another. The funder expects a return on the investment on his funds. In return, the borrower needs to convince the funder that he can repay the loan (an assessment of default risk) as well as provide sufficient collateral in the event that he is unable to honour his repayment obligations, the funder has a reasonable chance of getting repaid (collecting on securities provided).


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