The short answer is the same way we rate any other company, public or private. As long as you have a minimum of 9 months of financial data to provide, we can rate you.
Start-ups are in a unique position: their priority is growth and reinvestment, not building large financial reserves. Because of this, a start-up’s FHR may be lower than that of an established company—and that’s completely normal. It reflects the realities of early-stage operations, not your long-term potential.
Our standardized rating methodology enables us to assess all companies on the same basis, regardless of size or company type. Our approach is purely quantitative, meaning we're looking solely at your financial statement data as the source of truth for our assessment. Any qualitative context like being a start-up does not introduce bias or affect our evaluation.
Regardless of your rating, we encourage open dialogue with your business partners. Use the FHR as a starting point to share additional context about your strategy and goals—details that aren’t captured in our report. Transparency helps partners understand your situation and work with you to avoid placing undue strain on your business or even collaborate to improve your FHR over time.
A lower rating is not guaranteed for start-ups. FHR outcomes depend on many factors including overhead costs, industry, profitability, efficiency, leverage, and liquidity. Many start-ups improve their rating as they grow and stabilize.
For more information about how our ratings are derived, please visit our methodology page.