← Commercial Finance Answers

New companies & lender requirements

Can a loss-making company obtain equipment finance?

Possibly, but the lender needs to understand the losses, current cash position and how the additional commitment will be met.

The practical answer

Possibly, but the lender needs to understand the losses, current cash position and how the additional commitment will be met.

Provide recent management figures, bank information and an explanation of unusual or one-off costs. Show whether the proposed asset reduces costs or supports credible income, with realistic assumptions.

A valuable asset does not by itself make borrowing affordable. If cash is already under pressure, assess the downside and discuss options before committing to supplier deposits.

Important

Commercial finance is subject to status, lender approval and the specific asset and transaction. The right structure depends on the complete circumstances of the business.

What should I do next?

Have the asset details, supplier information and an outline of what the business needs ready. DCF can then discuss the requirement and identify which lenders may be suitable.

Read: New-start asset finance →