Alternative financing for SaaS companies.
Our SaaS credit facilities are fast, flexible financing for software companies. As an alternative to equity we offer speed to close, scalable capital, and a friendly partner that understands the unique needs of your business.
WHY SaaS LENDING.
HIGHER ADVANCE RATE
Capital availability is based on a multiple of your monthly recurring revenue – typically 3x to 6x MRR.
CAPITAL THAT SCALES WITH YOUR BUSINESS
Capital availability that grows with your business — The amount of funds that you can draw increases as your revenue grows. Capital available from $50,000 to $10,000,000.
LONG TERM OR SHORT TERM CAPITAL
Your choice of long term or short term – Funds are typically drawn down over 1 year under the initial credit facility, and can be renewed (and upsized) as they’re paid down and / or as MRR grows.
PAY FOR WHAT YOU USE
Efficient use of capital — Capital is drawn down as your business needs it, thereby reducing interest expense.
AVOID DILUTION AND MAINTAIN CONTROL
Much cheaper and easier to deploy than raising equity. Skip the fundraising paperwork and legal fees. Simple and transparent pricing — cost of capital of 7% to 10%.
WHAT WE LOOK FOR.
Don’t need to be venture backed, profitable or billing customers monthly.
HOW WE COMPARE.
| Source | Funding Size | Interest and Fees | Process |
|---|---|---|---|
| Harper SaaS Lending | $50k – $10M | 7% – 10% cost of capital. Paid down as a % of revenue. Payback scales up or down with revenue. | 2-4 weeks underwriting process. |
| Banks & SBA’s | Typically over $1M | Annual interest rates starting at 5%, if approved. | 2-4 months process. Lack of understanding of SAAS model. Low approval rate for startups, particularly without traditional assets. Restrictive covenants. |
| Venture Capital | $250k to well over $10M depending on stage | Angels and VCs underwrite to 15x-30x returns. Highest cost of capital available that significantly dilutes ownership. Possible loss of control. | Months of fundraising, negotiation, and diligence. Occupies significant founder time and resources. |