If your startup expects to earn revenue from lending, here's how to think about your business model. I'll cover the most important revenue drivers, expenses, and their relationship as you scale.
Great write up! I had one question for you regarding the minimum "bar" that is required in terms of a performing loan portfolio (perhaps with one's own funding) before it's acceptable to seek debt financing / balance sheet support from outside investors. In other words, if I manage to put $50k or $100k of my own funds to use that nets me funding for 25-50 customers. Is that a sufficient track record to approach investors? And if not, how do you bridge that gap to reach the next level of liquidity required to scale?
Hi Rohit,
Thanks for sharing this gem!
Can I use the content with your permission?
Great write up! I had one question for you regarding the minimum "bar" that is required in terms of a performing loan portfolio (perhaps with one's own funding) before it's acceptable to seek debt financing / balance sheet support from outside investors. In other words, if I manage to put $50k or $100k of my own funds to use that nets me funding for 25-50 customers. Is that a sufficient track record to approach investors? And if not, how do you bridge that gap to reach the next level of liquidity required to scale?