How to grow your SaaS business with revenue financing

Afshan Qureshi
Afshan Qureshi
Content Marketing Manager
Posted on
March 16, 2022
min read
How to grow your SaaS business with revenue financing

You’ve founded a SaaS company and things are going well. You have a solid base of subscribers and therefore, monthly and annual recurring revenue (MRR or ARR) that is predictable.

Industry growth = competition = funding needs

By nature, the SaaS market changes rapidly and frequently – new products, new users, the effect the global Covid-19 pandemic had on the software and cloud services industries – we’re talking massive SaaS escalation to keep up with how companies are doing business more and more. Suffice to say, the pandemic pushed hard on the accelerator button for SaaS.

Need SaaS growth capital? Put non-dilutive revenue financing to work

Non-dilutive revenue financing brings with it the pressure to not only stay abreast of what’s happening in SaaS but to stay competitive. This means there’s a need to grow and get the funding to do so. You could try for venture capital funding, but have you considered non-dilutive financing instead?

As an alternative financing solution, non-dilutive funding provides the working capital and growth funding you need—without you giving up equity in your SaaS business.

When you couple this approach with recurring revenue financing, you work with a non-dilutive financing partner like Capchase, and leverage your predictable future recurring revenue by bringing it into the present. You get the cash you need up front, based on your MRR and/or ARR. Plus, you avoid costly debt financing. Instead, recurring revenue financing is based on your monthly gross revenue.

Unlocking access to capital via revenue financing is a faster, lower-cost avenue for SaaS founders to get the funding they need, now. 

  • Unlike loans from traditional lenders, no personal collateral is required, and no interest is charged
  • The application process is simpler, and the approval process is fast
  • There are no complicated credit terms to haggle over 
  • Unlike venture capital funding, there’s no equity dilution; SaaS owners retain their full stake in the company
Maintain independence and raise money your way
Get financed

How does future revenue supercharge your SaaSco growth today?

Your future MRR or ARR can have a powerful impact on your SaaS business more immediately in many ways. With a non-dilutive infusion, you can often see that impact within a year’s time. 

Revenue-based financing is typically used to fund growth initiatives such as hiring more staff, marketing and sales campaigns, or product development. When your predictable recurring revenue becomes upfront working capital, you have the funds to invest (and re-invest) into your SaaS business to:

  • Grow your workforce (either remote or in-person employees)
  • Expand your product line and up-level your SaaSstack
  • Accelerate your roadmap or extend your runway
  • Acquire the software you need to take your product & revenue to the next level
  • Boost your marketing budget and sales reach

Non-dilutive financing from Capchase

Equity-rich VC capital is usually used to launch or expand a business. It’s more for long-term objectives in general. 

Non-dilutive working capital that’s based on recurring revenue enhances your SaaS company’s access to funds you need for more immediate purposes. This revenue financing model can help your company grow exponentially within a year. Find out why more and more CEOs and CFOs are trusting Capchase as the founder-friendly financing solution of their choosing.