Furthermore, technology companies are evaluated using existing generic credit evaluation frameworks, which have inherent shortcomings in evaluating the merits and demerits of a technology company. This alternative credit evaluation process will enable tech companies to access funding without the need to rely on personal collateral”. Seylan Bank, DFCC Bank, Union Bank, and NDB bank have already expressed their willingness to consider the new framework when assessing technology companies for debt financing. But most tech companies are faced with difficulties in obtaining loans due to a lack of physical collateral. Moreover, the pandemic has forced many challenges for tech companies, derailing the growth to some extent.

Source: The Nation June 09, 2021 12:45 UTC