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?
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.
