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A pre-revenue business or organisation is one that has taken active steps to get market ready but is not trading yet. It is a business that has not yet received any revenue.

When you complete the SBCS loan application you’ll have to make declarations about your drop in revenue by 30% due to the impact of Covid-19. If your business or organisation is pre-revenue and applying for the loan, you need to consider capital receipts not revenue in your calculations.

Capital receipts include external funding raised by businesses or organisations to get market ready. External funding includes:

  • debt funding (for example, bank funding and debt funding from external investors)
  • equity funding
  • grant funding
  • fit-out contributions (for example, a landlord may contribute to help get an applicant’s business market ready).

Capital receipts do not include:

  • funding a self-employed person provides to their own sole trader business
  • funding a shareholder (or other associated person) in a close company provides to that company, and funding associated persons provide to other types of closely held business or organisation
  • Covid-19 assistance grants such as the Resurgence Support Payments (RSP) or Covid-19 Support Payments (CSP).

Pre-revenue businesses or organisations need to keep records about how the drop in capital receipts was due to Covid-19.

Last updated: 13 Dec 2022
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