About 90% of technology and media companies fall within the first three years of business. Use the passage to answer the question how does this tendency affect the loans granted to new technology and media companies
This tendency of many technology and media companies failing within the first three years of business can have a significant impact on the loans granted to new companies in these industries. Lenders may perceive these industries as high-risk, leading to stricter lending criteria, higher interest rates, or lower loan amounts being offered to new technology and media companies. Additionally, lenders may require more detailed business plans, financial projections, and collateral to mitigate the risk of loan default. This can make it more challenging for new technology and media companies to secure the funding needed to start or grow their businesses.
