SaaS Financing
For software as a service (SaaS) companies, obtaining a favorable loan can prove difficult. At RevTek Capital, many of our clients are SaaS businesses who have taken advantage of our SaaS financing solutions.
What are the Loan Options for SaaS Companies?
As a SaaS company that needs capital to expand in sales and marketing, we know that most options for obtaining debt capital are not favorable to your business model. Bank loans and venture capital are viable options, but these financing models have significant drawbacks.
That’s where RevTek Capital comes in. If you want to grow your SaaS company without losing control of your company, you need RevTek Capital’s debt financing. Our loan models are perfect for SaaS companies that want to expand their marketing campaigns and generate sales without losing control.
Most lenders will evaluate your cost of capital and other revenue-based factors to determine a plan that will not help you in the long run. RevTek Capital provides financing designed specifically for businesses with predictable recurring revenue. We help you grow your business as you increase sales or make a strategic purchase of another company.
We provide from $2MM up to $20MM+ for growth. You can use these funds in sales and marketing to accelerate your early-stage business growth but also invest in software and product development. Our terms are simple, and our process is quick and easy.
Here is a chart to show the benefits and drawbacks of different options for obtaining SaaS capital.
BANK LOANS
- Benefit: Relatively cheap interest rate
- Con: No interest in working with early stage companies
- Con: Must be profitable
VENTURE CAPITAL
- Benefit: A venture capital firm can provide consultation to a new startup
- Benefit: Works with smaller companies
- Con: Very high interest rates
- Con: Strips some of the control of the business from the founders
BOOTSTRAPPING
- Benefit: Founders maintain control
- Con: Early-stage growth limited by lack of funds
- Con: Extremely high financial risk
- Con: Funding from personal savings causes financial strain
- Benefit: Founders maintain control
- Benefit: Personal guarantee not required
- Benefit: Predictable Recurring Revenue is the collateral
- Benefit: Affordable, consistent monthly payments
- Benefit: Simplicity