“As a Service” Financing
SaaS | HaaS | PaaS | BaaS | IoT
Growth Capital for Cloud Service Providers
Building the Next Unicorn’s cash flow financing program eliminates or delays the need for additional equity
Our debt-based financing program turns cash flow agreements into working capital without giving up equity. Service provider’s have traditionally funded their companies through equity placements and have not had access to debt financing. Our debt solution provides the Service provider with a financing alternative to grow their business while maintaining its existing ownership structure.
We provide debt financing in the form of a term loan that is tied to your revenue stream. This “revenue financing” structure, combined with our unique underwriting criteria, makes us the right partner for growing a business. The specific benefits to our approach include:
- Higher advance rates — Capital availability is based on a multiple of your monthly recurring revenue (MRR) — typically 4x to 6x MRR.
- Capital availability that grows with your business — The amount of capital that you can draw increases as your revenue grows.
- Long-term committed capital — Your business can draw down new capital over the life of the commitment period — typically up to 24 months. At the end of the commitment period the facility can be renewed.
- No balance sheet covenants or cash reserve requirements.
- Structure – requires monthly reporting as well as agreements with your bank (lockbox) and hosting provider.