For growing technology companies, obtaining — or developing — the right software can be extremely costly. The high initial investment that your software requires makes it almost impossible to finance it without additional capital.
Whether you are a Software as a Service (SaaS) provider or a technology company that needs new, expensive software to improve their products and expand their reach, RevTek can help.
We know that the primary financing options for businesses — i.e. traditional debt and venture capital — are not designed with your business model in mind.
Bank and business loans can be difficult to obtain because you need to be able to offer serious collateral. On top of that, the loan amounts usually are not sufficient and the repayment terms are strict, which is difficult for a company whose income fluctuates from month to month.
Although you do not have to repay the lender, venture capital requires you to dilute equity and give up some control in the company. This can lead to all sorts of conflicts and potentially results in less profit in the long run for you when or if you decide to sell the business entirely.
We have developed ideal revenue-based financing solutions for companies just like yours. Depending on your qualifications and needs, we can finance you with as much as $2 million to be repaid in monthly payments that fluctuate with your income.
How Can You Use Our Financing?
Whether you are just getting established or have already developed a consistent clientele, you may want to grow your company with initiatives that you can not finance out of pocket and we want to help.
The loans we offer to software and SaaS companies are for all sorts of growth initiatives. We want to invest in companies with proven business models aiming to expand, because the more your company increases its revenue over the course of the loan the quicker you will pay it off, benefitting you and us. It’s a win win!
Some of the most common projects that software companies undertake with their RevTek loans are:
- Create and fill a new position
- Initiate a new sales initiative
- Develop a new software or improve an existing one
- Purchase equipment
When you come to us looking for a loan, we want to see a specific plan in place of how our capital will allow you to generate more revenue in the long run.
What Are the Terms?
The idea is simple: we provide you with capital in exchange for a percentage of your future revenue until the debt is paid. The quicker you finish the payments, the better your company is expanding its revenue stream.
Our terms are quite simple, too. Generally, we offer loans of up to $2 million in growth capital, but never more than ⅓ of your company’s annualized revenue. Our financing options have repayment terms that range from 3-5 years. We don’t pin down an exact number to give you flexibility.
We determine the repayment cap — or the actual cost of capital — based on the amount borrowed and the proven cash flow that your business has been generating. For most, this results in a cap of 1.3 to 1.8x the amount borrowed, all paid back within 3-5 years.
There are some qualifications that you will need to be eligible for our services.
- Proven predictable recurring revenue
- $50,000 gross revenue monthly
- Gross margins of at least 50%
We are in the business of financing software businesses into their next phase of growth. With flexible monthly payments that do not require you to give up any control, we provide the ideal financing solution for software and SaaS companies. Get in touch with our team today!
At RevTek, we provide revenue-based financing that works for your company. We work with you to craft a repayment plan based on your MRR or 40-50% of ARR. By focusing on a percentage of future revenue, we avoid taking any control or equity in your company.
Our process and terms are simple, and you can obtain as much as $2 million in growth capital. You can use the capital to meet any of your business’s needs and improve your sales and marketing, expand your broadband network or broadband development, acquire new equipment through purchase or equipment leasing, or develop new services. Contact us today.
More flexible than the bank
We lend more to early-stage growth companies
Interest rates can be lower for bank loans than for revenue-based financing, but beyond small lines of credit, banks rarely lend enough for early-stage growth.
Bank loans contain complex covenants that can be difficult to navigate.
Monthly payments rise and fall with the ebb and flow of your revenue
Your monthly payments
Revenue loan rate
Monthly net cash receipts
Payments adjust to what your business can afford.
The payment rate is always below 10% to minimize the impact on your cash flow.
How fast you repay your loan depends on how fast your business grows
Our loans are normally repaid over 3–5 years, but if your revenue grows faster than planned, you can pay off the loan sooner.
Banks, on the other hand, can make it very difficult or expensive to terminate a loan early.
Far cheaper than equity
Our revenue-based financing uses a simple, transparent pricing model so you know your total commitment from day one
Revenue-based financing has two costs:
A repayment cap,
Minimal legal expenses (usually around $3,500),
The repayment cap is calculated as follows:
Cost of funds
The cap is usually 1.3–1.8x the amount borrowed, paid back over the length of the loan (usually 3–5 years).
Venture capital is not free—in fact it is vastly more expensive in the long run.
The equivalent “payment cap” for venture capital can be 10–20x the amount they invest in you—or more.
And initial legal fees and expenses can easily reach $30,000.
Funded More than 27 Growing Technology Entrepreneurs
As an intermediary, I have had the opportunity of working with the Principals regarding the financing needs of operating companies which I represent. They are very proficient at, being able to "Peel the Onion Back" in analyzing a particular financing need to come up with solutions that would meet the needs of my clients seeking financing. With it being a flat organization, you are always talking directly with the decision makers who are very responsive in their communication of: How to get to a deal or we do not see this fitting into our lending model.
Thunderbird Corporate Finance, LLC
RevTek Capital has evolved into more than a financial partner for our company. While their financial acumen is evident early on, the long term benefit RevTek Capital offers is the ability to dig into the operations side of your business and offer a fresh perspective or a new connection that can further your business. If you're getting started and want a big value add to your financing, RevTek Capital is an excellent choice.
WISPer Ventures / REVTEK Capital went to bat for us early on and has proven to be a great financial partner throughout our record historical growth. They went the extra mile to really understand our business early on, when other lenders simply wouldn’t.
In addition, they have proven to be much more than a direct financing source by helping us raise additional capital from outside sources to further accelerate our growth.
If you are an early stage company seeking growth capital with an objective to minimize dilution, WISPer/REVTEK is the perfect choice.
If you are looking to expand, restructure, or explore alternative options with your SaaS business, RevTek Capital can help you reach your goals.