YOU ARE LOOKING FOR SAAS FINANCING
WE'VE GOT THE RECURRING REVENUE FINANCE SOLUTIONS NOW!
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
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REVENUE FINANCING IS ALL ABOUT SCALING YOUR BUSINESS!
WANT TO AVOID *EQUITY FINANCING *( FOR THE TIME BEING !)
It's no secret ! The main attraction of recurring revenue financing is the ability of your Saas firm to obtain the capital you need today to focus on your future technology investments. The ability of a software company to access additional cash is what SAAS Revenue-based financing is all about.
'The spread of the computing grid will finally establish the idea of software as a service ' ( Source - economist.com ) Let's dig in on how to finance your SAAS revenue growth rate via a monthly revenue formula solution that works!
THE POWER OF YOUR COMPANY'S SAAS SOLUTION & SUBSCRIPTIONS BASED BUSINESS MODELS
It's no secret why your company provides significant advantages to your customers via your cloud/internet solution. Your clients can also ' scale ' allowing them to utilize your services to the extent they need it, with growth or downsizing readily attainable. With the need for hardware and infrastructure gone your clients save in numerous ways including labour and tech investments.
The concept of pay per use drives Saas companies such as yours to allow clients to budget for growth capital and ' scale ' without major setup costs or the challenge of downtime
How can your company access the cash flow you need today without waiting for tomorrow! Let's dig in! The challenge of growing a ' Saas ' business is the need for additional capital for new and or larger contracts to grow the client base, and of course your firm's valuation. In today's lightening speed competitive environment no software firm can afford to lose out on new business and growth of your client base.
Similar to other types of venture debt such as SR&ED Financing the Saas business model is all about unlocking cash flow by monetizing contracts in the case of Saas, and r&d in the case of sr&ed development & finance.
Many Saas businesses also file SRED Funding claims to accelerate cash flows - Refundable tax credits are key factors for many Saas firms. If your business bills your client base on a monthly, quarterly, or longer-term basis the potential challenge to your business is the timing of cash flows to run your business.
LET'S MAKE SURE WE UNDERSTAND WHAT RECURRING REVENUE IS!
Recurring revenues arise out of contractual arrangements you have in place for your service/application. Contracts and client agreements like these allow your firm to have predictability in stable cash inflows for the length of your client agreement.
CHALLENGED ON HOW TO FUND AND INCREASE RECURRING REVENUE?
Recurring revenue finance solutions allow you to borrow today against those future cash inflows from customers. The availability for finding in advance of customer payments is what Recurring Revenue financing is all about.
For example, if you are billing on a monthly basis we could call that financing a current MRR LINE OF CREDIT - ( MRR = monthly recurring revenue ), establishing a maximum loan amount is easy after that.
CONCLUSION - SAAS REVENUE BASED FINANCING IN CANADA
If your software firm has a recurring revenue model and proven revenue streams equity-free Saas funding is a great financing tool that avoids ownership dilution in your business at a time when revenue is grown and your valuation increases. That's the promise of 7 Park Avenue financial and other debt providers who, unlike most banks, don't focus on personal guarantees, balance sheet ratios, etc.
Angel investors and VC's will also require board seats! Let's not forget that one.
Let the 7 Park Avenue Financial team deliver a revenue-based financing term sheet that meets your growth and capital needs. Saas revenue financing is the solution you have been looking for while you focus on job #1 - customer acquisition.
Speak to 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you with the challenges of waiting for future cash payments from your clients based on multiples of your monthly, quarterly or annual (ARR financing ) contracts with customers.
It's a subscription-based software finance solution you've been looking for. Consider the benefits of having long-term clients that comes with a financing solution via loans for annual recurring revenue financing for your growth initiatives. Saas capital can be utilized over a long period of time while your company uses these funds to grow sales and increase the value of the business.
Whether you are an established firm or looking for sales royalty financing for startups we've got the solution you are looking for!
Saas businesses have tremendous growth potential. Growing valuation multiples for SAAS growth companies is job #1! Let's get started!
FAQ: FREQUENTLY ASKED QUESTIONS
What is Software As A Service ( Saas )?
Saas is a software solution based on the cloud computing model. It allows a software firm to deliver its solutions and application via the internet via a website or other applications. Infrastructure can also be delivered under the Saas model.
What is Recurring Revenue Financing?
Recurring revenue finance loans provided capital to offset the time required to recognize future recurring sales contracts. If a Software as a service company ( ' SAAS' ) receives monthly, quarterly, or annual payments from clients the SAAS company can monetize these contracts for cash flow needs.
What is venture debt?
Venture debt is financing via loans or lines of credit firm firms that have a history of operations but are still at a point where they don't have operating cash flows sufficient to sustain or grow the company's revenue and are unable to access bank loans and traditional financing. ' Tech banks ' are virtually non-existent in Canada which is the appeal of MRR based loans. With a solid advance rate and no restrictive covenants venture debt works! While Canadian banks of course offer lower interest rates the typical emerging Saas firm cannot access the low-cost bank capital they need.
Check out the ' Startup Genome Report ' which identified to the industry that ' premature scaling of Saas businesses led to the majority of business failures in Saas - underlying the importance of critical financing solutions along the way.
Click here for the business finance track record of 7 Park Avenue Financial