Banks finance on the basis of collateral. Debtors, machinery, buildings, inventory and so on are then pledged to the bank. NOM finances on a risk basis and does not require collateral. In addition, our loans are subordinated loans. If there is not enough money to pay creditors in a bankruptcy, NOM is the last in line to receive money, in practice this is nil.
NOM also invests in start-up and growing companies where full adoption of the product/service by the market is still an ongoing process or an additional market share needs to be acquired. Because this puts costs before benefits, there is a higher risk. As a result, we run a higher risk.
