How does cash flow lending work?

Cash flow lending works in six steps: the lender aggregates bank, accounting and transaction data; cleans and normalises it by stripping transfers and owner draws; models net cash inflow, volatility and seasonality; converts those metrics into a risk score; maps that score to loan size, term and rate; then monitors the borrower's accounts continuously for early-warning signals. Where the data connections are automated, the whole sequence can run same-day.