Alternative Growth Financing for SaaS Companies
The cloud has created numerous financial challenges for Entrepreneurs that base their revenues on a SaaS or HaaS model. We have spent the last two years developing and growing a financing solution that addresses this specific problem without requiring the Entrepreneur to personally guarantee the loan or give up any equity.
WHATS NEW AT SLG!
SLG's Contract Financing Solution provides credit lines in the form of a term loan that is tied to a revenue stream. Our "revenue financing" structure, combined with our unique underwriting criteria, makes us the right partner for growing SaaS business.
SLG`s Contract Financing Solution, does not require personal guarantees or equity.
Clients use the SLG credit line in lieu of a capital round financing.
Benefits of our approach include:
- Our Advance Rates Capital availability is based on a multiple of your monthly recurring revenue (MRR) typically 4x to 6x MRR
- Credit Lines The amount of capital available increases as revenues grow
- Long-term committed capital A business can draw down new capital over the life of the contract. At the end of the commitment period the facility can be renewed
- No balance sheet covenants or cash reserve requirements
- Structure requires monthly reporting as well as agreements with your bank (lockbox) and hosting provider
Who Uses SLG
- VC funded transactions that are looking to delay the next equity round
- Digital Media Sales (subscription)
- Digital Media Sales (Non-Subcription)
- Mobile Application Sales
- Software Sales (Cloud/SaaS/ Subscription)
- Software Sales (Non Subscription)
- Managed IT Services
- Software Implementation Services
- Technology Hardware and Equipment Sales
- Advertising
- Value Added Reselling (HW & SW)
- eCommerce (Physical Goods)
- Others: If you have sticky revenue, call us.