This study investigated the corporate borrowing dilemma in the context of digital lending platforms, focusing on the trade-off between the speed and convenience offered by these platforms and the associated risks, particularly high-interest rates. With the rapid growth of digital lending platforms in comparison to traditional banks, corporate borrowers are faced with an important decision: whether to prioritize quick access to funds or to opt for lower-interest rates typically offered by traditional banks, despite slower loan approval processes. A survey was conducted with a sample size of 200 corporate borrowers, representing a diverse demographic, including 70% male and 40% degree-educated respondents. The study employed a Likert scale to assess borrowers' preferences and perceptions regarding the advantages and disadvantages of digital lending platforms. Key findings revealed that 76% of respondents preferred borrowing from digital lending platforms, even in the face of higher interest rates. The primary factors influencing this preference were speed (80%) and convenience (60%), while risks such as high interest rates (70%) and concerns about data privacy (60%) were also acknowledged by the respondents. Statistical analysis, including Chi-square and regression tests, was performed to explore the relationships between demographic factors and borrowing preferences. The results indicated that while demographic variables like gender and education level did not significantly influence borrowing decisions, The speed of loan processing was the most significant driver for choosing digital lending platforms, with a negative correlation between high-interest rates and platform preference
Olusegun Michael OJUA (Tue,) studied this question.