“One common way for companies to finance a purchase is through debt financing, which has many benefits and risks. In debt financing, a company receives a loan that they make a commitment to repay with some conditions, such as set monthly payments and an interest rate.”
Private equity providers, venture capitalists and investment bankers operate in the same general business climate, working with companies to help provide financing designed to improve operations and spur growth. The three operate along the spectrum of a business life cycle, playing roles in everything from a company’s launch to its initial public offering of stock or acquisition by another company.
The growth of Software as a Service (SaaS) shows no sign of slowing down. For consumers, it can be challenging to understand the many different pricing models. The reason may be that, in this still rather new industry segment, many companies are still trying to understand SaaS pricing models and strategies.
As opposed to traditional software sales, it is not as simple as finding the right per-unit price to optimize sales and profits. Instead, there are multiple pricing strategies and, perhaps even more importantly, several guiding strategies behind them.
When you think of debt financing, you may immediately think of borrowing money from a bank to obtain a bank loan. However, there are many other types of debt financing, depending on the needs of the business and its ability to repay the debt. Each has advantages and disadvantages depending on the riskiness of the business and its stage in the life cycle.
Until the recent past, business and marketing models have been built around companies trying to sell a physical product. They want you to buy the newest car, the best watch, or even that tendy, eco-friendly, hand printed tee.
These all have one thing in common: they are items.
In the world of items, a one-time purchase is all you need to close a sale and call it a success. Sure, repeat customers are important, but they are not necessarily the backbone of your business operation– especially as the price per item rises.
In SaaS, the game changes.
Software as a Service (SaaS) is one of the fastest growing industries today with little sign of slowing down. Companies and business owners alike rely on these services to keep their staff and workflow running smoothly so when they find something that works, they stick with it.
Offering a platform as a service is the first step into breaking into this new market, but there comes a point where businesses need to re-evaluate their plan and ask, “What’s next?”
We devote the time to understand your accomplishments, circumstances, and opportunities to create a customized debt funding structure to accelerate your growth.