About 90% of technology and media companies fail 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?
These companies loans are smaller
These companies are unable to obtain loans
These companies loans have higher interest rates
These companies are loaned money by many different institutions
The tendency of technology and media companies to fail within the first three years likely affects the loans granted to new companies in this industry in several ways. Firstly, lenders may be more cautious in providing loans to these companies, resulting in smaller loan amounts being granted. Additionally, due to the high failure rate in this industry, lenders may view these companies as high-risk borrowers, leading to higher interest rates on the loans that are approved. Some lenders may also be unwilling to provide loans to new technology and media companies altogether, making it more difficult for these companies to obtain financing. Overall, the high failure rate of technology and media companies likely results in more limited access to capital and potentially more expensive borrowing options for new companies in this industry.
