2 min read
Profit and cash are different
A company can post an accounting loss — after depreciation, or because it is reinvesting revenue into growth — while still holding healthy cash. Lenders repaid from cash flow care about the cash position, so a loss on paper is not automatically a no.
What tips the balance
Evidence of strong, growing turnover, a clear reason for the losses (investment, not decline), and positive operating cash flow. A business burning cash with no path to sustainability is a different, harder case.
Applying
Bring statements that show the cash story, not just the accounts. Test it with the affordability calculator and apply online.
Frequently asked questions
If my accounts show a loss, am I automatically declined?
No. A lender distinguishes an accounting loss from a cash-flow problem. Reinvestment losses with strong cash flow can still support borrowing.
What's the difference between profit and cash flow for a loan?
Profit is what remains after all costs on paper; cash flow is money actually moving through the account. Lenders repay from cash, so cash flow usually matters more.
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