Why the bank says no
Bank lending is built around security. An agency, consultancy or accounting practice has laptops and a lease, and neither is collateral in any meaningful sense.
The value of the firm walks out at six o'clock. Underwriters know it, and a model built on recoverable assets has nowhere to put a business whose assets are people.
Payment terms are the practical squeeze. You carry salaries for thirty, sixty or ninety days before a client pays, so the borrowing need is structural rather than occasional.
What a revenue-based funder reads instead
Recurring billings are among the most predictable revenue an underwriter sees. Retainers and repeat engagements produce a deposit pattern that is easy to verify and hard to fake.
Client concentration is the thing that will actually be examined. One client at sixty per cent of revenue is a genuine risk, and it changes the offer more than the absence of collateral does.
A line of credit generally fits better than a lump sum, because the need is a gap between payroll and payment rather than a one-off purchase.
What to have ready before you apply
Six months of business bank statements.
Roughly what share of revenue your largest client represents. It will come up.
Whether billings are retainer or project — recurring revenue is priced better.