Entrepreneur urges banks to recognize software and intellectual property as assets
Signal Alliance Technology Holding executive vice president Collins Onuegbu recommended that commercial banks start classifying software and intellectual property as bankable assets.
Onuegbu, in an interview with our correspondent at the company’s 25th anniversary ceremony, said it was difficult for older tech companies in the country with lean business models to obtain financing from commercial banks because their assets, such as software and intellectual property, were not recognized by banks.
He said, “If I walk into a bank now and apply for a loan, they will ask me for our balance sheet, our income statement and say the collateral would be my car or my house.
“If I say I don’t have a house or a car, but I have an IP, they wouldn’t take it. It’s very difficult; I can’t just go out and buy houses and cars. It doesn’t work for my business.
“We work with companies and we know how much they spend on software. Imagine paying $ 3 million for software and you can’t classify it as an acquisition of capital.
“I think the problem is being solved for startups, which are younger companies, valued according to their future. We invest in certain companies and they are more important than us when they are valued.
Onuegbu said politically the federal government has started classifying software as an asset.
“So that’s a good sign. I think the country is ready to change and, as such, it can improve, ”he added.
SATH was founded in 1996 as Signal Alliance, an information and communications technology company that has grown into a suite of subsidiaries providing cloud services, technology consulting, and early stage technology investments.
In a speech at the ceremony, Onuegbu said, “As a future-ready technology company, we have also diversified within the IT industry into a few companies that are aligned with our vision.
“On that note, I am pleased to also announce that Signal Alliance is in the process of transitioning to a holding company made up of three subsidiaries: CloudSA, Signal Alliance Consulting and Sasware, including several affiliates. ”
He said the new holding company will continue to expand its portfolio of businesses locally and internationally by leveraging the growing technology market in Africa.
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