What is SaaS Recurring Revenue Financing?
Recurring revenue financing provides capital in multiples of the portion of revenue that is predictable and stable. So, you can increase your cash flow to extend your runway and invest in the areas you need and repay your loan while your revenue is growing.
How Software as a Service Revenue (SaaS) Financing Works
Apply using our secure online portal and qualify for a SaaS loan of 4 to 10 times the amount of your monthly recurring revenue (MRR)
Get funded within 10 to 15 business days
Repay your loan on a monthly basis based on a percentage of your monthly revenue or amortizing loan
Benefits
- Loan size: From $100k to $1M
- Fast: Receive funds in as little as 10 business days
- Cost effective: There is a cost to the loan, but it is usually much less expensive than equity
- Non-dilutive: Don’t lose equity to grow your business
- Simple: Standard loan documentation which is easy to understand
Flexibility
- No warrants or equity kickers
- Senior or subordinate position
- Ability to participate in larger transactions with partners
- Terms ranging from 1 to 3 years
- Light covenants
Criteria
- Minimum recurring revenue of $30k per month or $300k per year
- High gross margins
- Low customer churn
- Clear path to profitability
- Increasing revenue