SaaS Capital is the premier source of debt capital for Software as a Service (SaaS) companies.

Software as a Service (SaaS) business models are attractive because they deliver predictable, high-margin revenue streams that Wall Street, corporate buyers and CFO’s love. In the early years of the company, however, the business model is very capital intensive because revenue and cash flow are pushed out into the future. On average, it will take 50 – 70% more capital to grow a SaaS company than it would its perpetual license counterpart. The challenges associated with securing additional capital through traditional sources include:

• Selling equity is a capital inefficient and expensive way to fund additional working capital. Nobody likes the dilution resulting from a Series D.
• Lenders (banks) are generally constrained to lending against GAAP assets and therefore will not underwrite loans based on future revenue (core to the SaaS business model). This restricts the available funds they can provide you.
• Venture lending does not provide the flexibility of taking out money when you need it and is typically structured in a way that dilutes ownership equity.

SaaS Capital is the only lender that offers loan packages specifically designed for the SaaS market, allowing companies to tap into their predictable revenue streams (contract backlogs) to fund operations today.

SaaS Capital loan packages are non-dilutive, provide more funds availability than traditional accounts receivable financing and are structured with flexible terms that match up with the needs of today’s SaaS companies. To apply for a loan or to determine whether or not our loan packages are right for your business, please contact us online or call us at 513-277-0898.