Grow Without Giving Away Equity
Most tech founders assume the choice is bootstrap slowly or sell equity. There is a third: debt structured around recurring revenue or your R&D claim, where no lender takes a seat on your cap table.
£150bn+
UK tech sector output
85,000+
Tech companies in the UK
The core problem for tech businesses is that most banks are collateral lenders and software is not collateral. You might have £40k monthly recurring revenue, a signed enterprise contract, and an R&D claim worth £200k sitting with HMRC, and a traditional credit team will still want a personal guarantee and a property behind it. The lenders we approach underwrite against MRR, churn, and contracted ARR instead, which changes what is available and at what size. An R&D advance turns a six to twelve month HMRC wait into cash inside a week. Revenue-based finance flexes repayments down in a slow month and up in a strong one, which matters when your revenue is lumpy. CoreFi is a commercial finance broker, not a lender: the lender decides the outcome and the price, based on your numbers and their appetite. What we do is put your deal in front of the desk most likely to say yes.
Common Challenges in Technology
Hiring ahead of revenue
You need engineers and salespeople on payroll before the contracts they will service have landed. That gap is where a lot of early-stage tech businesses stall. Working capital facilities and revenue-based finance are the two routes that fit here most often.
Long enterprise sales cycles
A signed LOI with a FTSE 250 client does not pay your AWS bill. Enterprise deals that take six to twelve months to close mean your costs are front-loaded against revenue that is still conditional. Some lenders will advance against contracted ARR, most will not, and we know which ones do.
R&D claim lag
HMRC does not process R&D tax credit claims quickly. A claim worth £150k stuck in the queue for eight months is dead working capital. An R&D advance releases up to 80% of the expected value now, then repays out of the HMRC payment when it lands.
No tangible security
Cloud infrastructure, IP, and a codebase do not satisfy a standard lender's security requirement, which narrows your pool sharply. The answer is not to pretend you have assets; it is to go to lenders that price cash flow rather than collateral.
Finance Solutions for Technology
We work with specialist lenders to find the right product for your business.
R&D Tax Credit Advance
Advance of up to 80% of a pending HMRC R&D tax credit claim, repaid directly from the HMRC payment when it arrives. The claim needs to be submitted or in preparation, and the lender will want sight of the supporting workings. Terms and eligibility are set by the lender.
Learn moreRevenue-Based Finance
A fixed capital amount repaid as a percentage of monthly revenue, so repayments contract in slower months. Needs existing recurring revenue in place; minimum MRR thresholds vary by lender.
Learn moreUnsecured Business Loans
Fixed-term working capital for hiring, product development, or marketing. Lenders assess trading history, revenue trend, and personal credit, and usually want at least six months of trading.
Learn moreRevolving Credit
A credit line you draw and repay repeatedly, useful for costs that move around month to month. Interest is charged on what you draw, not the full limit.
Learn moreWork out your numbers
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Frequently Asked Questions
What is an R&D tax credit advance and how does it work?
If your company has submitted an R&D tax credit claim to HMRC, or is preparing one with an accountant or R&D specialist, you can borrow against the expected repayment. Lenders typically advance up to 80% of the claim value and are repaid when HMRC pays out, so there is no fixed monthly repayment during the wait. The claim needs to be credible and the supporting workings in reasonable order, because lenders are not lending blind. CoreFi is a broker; the advance, the amount, and the terms are decided by the lender based on your claim and their appetite.
Is revenue-based finance suitable for pre-revenue startups?
No. Revenue-based finance repays against existing monthly revenue, and there is no way around that mechanic. If you are pre-revenue, the realistic routes are innovation grants, SEIS or EIS angel investment, or venture debt where you already have institutional backing. We can point you at grant options, but we cannot arrange debt finance where there is no revenue to service it.
How do lenders assess a SaaS business with recurring revenue but no assets?
On the quality of the revenue, because there is nothing else to secure against. Lenders read monthly recurring revenue, churn, customer concentration and whether contracts are annual or rolling monthly. Twelve months of steady MRR with low churn reads well even where the balance sheet is thin; one customer making up half the revenue reads badly whatever the total. Expect a personal guarantee to be asked for on unsecured lending, and expect the facility to be sized from the revenue numbers, not the growth deck.
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