Do banks finance newly established start-ups that have no previous balance sheets? | Ask Banky

Editor-in-Chief Mohamed Salah

ع

Editor-in-Chief Mohamed Salah

Do banks finance newly established start-ups that have no previous balance sheets?

Asked by Banky team 2 months ago
Banky team Reviewed editorial answer

Financing start-ups (with no historical financial statements) is considered high risk. Most banks reject it under ordinary commercial lending, but it is accepted through dedicated programmes (such as the NilePreneurs entrepreneurs initiative), or through financing based on proof of the volume of existing contracts and supply orders, or through venture capital firms.

Discussion

Join the discussion

Sign in to add your comment or reply to other readers.