Providers of debt capital seem to require significant (circa $2m) in working capital/cash on hand. Is there a way around this for early stage startups who don't have that kind of working capital? Are there any companies doing white labelling or partner programs that removes these requirements?
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Answered 3 years ago
It's very difficult to take out traditional bank debt without revenues. try angel investors who are willing to do SAFE notes or convertible debt. have a solid plan in place which shows how you will use the money to become revenue generating.
Answered 3 years ago
Certified Capital Markets & Securities Analyst (CMSA) with 15+ years in the financial services industry, specializing in risk management (Credit Officer at a bank), capital structuring, and fintech business. Founder of AUROCKS Finance, a Swiss fintech focused on synthetic asset.
Answer:
Early-stage fintech lenders rarely get direct institutional debt facilities before generating revenue or building a credit history. Most overcome this by structuring partner or white-label agreements with licensed lenders or private credit funds that provide the balance sheet while the startup handles origination and tech.
A typical path involves using SPVs, forward-flow agreements, or warehouse facilities once some performance data exists. Until then, the most practical route is hybrid financing — equity capital combined with a partner’s debt facility — allowing the startup to prove its model before negotiating institutional debt lines.
Answered a month ago
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