What is the Finance Trilemma ..?

Business funding is all about trade-offs – the Finance Trilemma highlights this. Borrowers want 3 things: low collateral, favourable pricing, and flexibility for complex situations.

The reality?

You can only ever have 2.

For example, if collateral is limited and the deal is complex, then pricing is unlikely to be the most competitive.



Let’s get the conversation started …

The Finance Trilemma
The Finance Trilemma
every funding solution forces a trade-off

You can't have it all — you can only have 2

High collateral Low collateral
Less competitive pricing Competitive pricing
Easy Situation Complex Situation
Let's get the conversation started
loans from R1M to R75M

Pricing

Pricing is often related to context. A complex situation means higher risk – and less competitive pricing.

Collateral

Collateral partly helps a funder’s risk. Importantly, providing it – reflects your willingness to back yourself.

Complexity

Complex situations – tough industries, weak financials – need a funder bringing creativity, flexibility and an open mind.