2 min read
Why cash-flow lending needs revenue
A cash-flow loan is repaid from income, so a company with no revenue has nothing for the lender to base repayment on. This is the honest constraint: pre-revenue and cash-flow borrowing do not easily meet.
What can fit instead
Before revenue, founders often use director investment, equity, grants or startup schemes; asset finance can fund specific equipment. Once even a few months of evidenced trading exist, cash-flow lending opens up. Read the startup finance guide.
Applying later
Start trading, then apply online once income is evidenced.
Frequently asked questions
Can I get a cash-flow loan with no revenue at all?
Generally no — such a loan is repaid from income there is none of yet. A few months of evidenced trading changes that. Before then, other funding routes fit better.
What funding suits a pre-revenue company?
Director investment, equity, grants or startup schemes, and asset finance for specific equipment. Cash-flow lending becomes an option once trading generates evidenced income.
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