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Hey BBHF fam,

I have written my business plan to get a loan from a government backed scheme and I would like some help of you. The Plan itself has been approved but my business advisor came back to and questioned my cash flow.

Basically I have asked for a loan of £10000, this money would be used for the start up of my company promoting affiliate offers. Most of the money would be spend to buy cpa traffic.

Now adviser said that the money in my cash flow is used as a buffer meaning that I would only spend roughly £1500 a month and the cash balance is too high because I make profit and the loan is only meant to support the operation for a few months during the start up.

I have then revised the plan and said that I am looking so spend £9000 within the first month to buy traffic credit as "inventory".

But this is apparently still not good enough for investment as I have to prove why I would need to spend £9000 within the first month, this is where i need your help, with affiliate marketing there are no startup quotes or minimum investment needed.

How can justify why i need to spent this amount within the first month.

Any inputs, thoughts or ideas would be greatly appreciated!

I have attached my cashflow if you want to have look.
(nextgenleads doc is the copy of the "to high cash balance each month")
(Sud cash flow is the revised version)

i am assuming this type of loan is similar to an sba loan in the u.s. and you are going to have an impossible time with getting a loan for an online business. you will have no assets/inventory and it's almost impossible to create a model where you will be showing a positive cash flow. even if you showed you have 1000's of followers on 5+ major social networks and lots of traffic already coming to your site or your already built affiliate campaigns(which can be considered an asset in some regards), you still can't provide a model for a positive cash flow with the 10k you want the loan for(especially when you aren't buying assets/inventory).

now if this was a brick and mortar business model and plan to teach people how to make money through affiliate offers/cpa where you lease a place and buy computers for your clients to use, you might have a chance in getting that loan. while teaching your students, the majority of the money goes in to computers while the rest goes in to buying your traffic. so not only are you spending it on marketing, you have created some business assets. obviously you will have to show demographics and demand for this service in your business plan where you can then project your 1-5 year earnings(have to do your research). it's also good when the government can see that you have invested your personal money in to the business.

the one question any lender will ask is "how am i going to get my money back). you can't show it when you're spending all your money on traffic. the money is now drained and you have to show how that money will convert in to a roi. almost impossible to do so the semi brick and mortar way where you create something offline to do online is your best bet here in my opinion. you would be acting as a teacher/coach so if you can show you can get 5 students a month in a one month program which costs the students $1000 each + their own traffic costs, you can show you are able to pay the debt back AND show you have assets to back up the debt.

again, if you show the business purely online you wont be getting the loan in my opinion and you are still gonna have to accept some risk upon yourself too.....

I applied for the loan on some bank, I mentioned for Internet marketing but they just rejected not even reviewed my application.