SaaS Debt Toolkit

Appendix to Comparison Guide of Debt Options for SaaS Companies serves as a complementary resource to our Comparison Guide of Debt Options for SaaS Companies.

We provide a general framework to compare different debt structures and detail three specific examples of debt options available to SaaS companies in the market today. The appendix discusses three common debt options available to SaaS companies:

1. Term loans.
2. MRR-based credit facilities.
3. Revenue-based loans.

The key benefit of debt to a SaaS company is providing it with incremental cash runway during which time it can create equity value for shareholders. The cost of the debt is then subtracted from the total value created to determine the increase in net equity value.

To properly assess different options, management needs to estimate the number of months of runway each debt option provides and how much value is being created each month. The excel worksheet can help with calculating the runway of each option.

Files included in your download:

  • Appendix to “Comparison Guide of Debt Options for SaaS Companies” – Examples (PDF)
  • Debt Structure Options Workbook (XLS)

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