How to evaluate a start-up

Description

Abstract: Whether to lend to a start-up is one of the most difficult decisions a lender faces. This article contains advice on how lenders can evaluate the pros and cons and determine the potential for success — or failure. The article points out that start-ups have only limited operating histories and may have never generated positive cash flow, or even revenue. It also notes that a start-up can provide a good lending opportunity — but only if the business plan is viable and based on reality.