Project funding based on cash flow

For many year the only true security a lender has had is the ability of the borrower to repay the loan from cash flow. A lesson they are learning the hard way, even if that have not identified this key fact in lending criteria.

Peer to peer lending now offers lending based on cash flow. This allows funding for projects that have strong cash flows without traditional security.

2 thoughts on “Project funding based on cash flow

  1. The net result is that cash receipts often lag cash payments and, whilst profits may be reported, the business may experience a short-term cash shortfall. For this reason it is essential to forecast cash flows as well as project likely profits.

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