What is Debt Financing

Insights on venture debt.

Warrants, Covenants, and Guarantees: Understanding These Important Loan Conditions

Venture debt financing is one of the most flexible, founder-empowering forms of SaaS funding available on the market. While a number of other options are available, debt financing stands above the rest when it comes to keeping founders and owners operationally and strategically free. However, while debt financing allows borrowers to maintain complete ownership of …Read More

Why Debt is the Flexible Financing Growing SaaS Companies Need

We Know, Debt Doesn’t Sound “Flexible” We all know what debt is: money that is lent and must be repaid with interest. But in terms of debt as a funding model for growing SaaS companies, it’s actually quite flexible for many reasons. When compared to other models that require collateral (that online software-based companies typically …Read More

The Venture Capital Success Rate for Startups

TL;DR: It’s Low Starting a SaaS or technology business is hard enough. You have to come up with an idea and establish the company itself. You have to identify and research the market need for that idea. And then you have to build it up to a useful, functional form, even piloting it with only …Read More

The Risks of Venture Capital Funding for Growing SaaS Companies

Venture Capital Can Pose a Productivity Challenge While venture capital funding (along with other models) provides resources that allow you to make improvements or changes, it’s not guaranteed that your SaaS business will become more productive as a result. In fact, raising venture capital funding can often have the reverse effect: when those funds come …Read More

What You Should Know About Raising Venture Capital

SaaS business owners are often drawn to venture capital investors without considering other funding options. There are a number of reasons for this. The sheer popularity of venture capital, the perception that VC funding will make a company successful, the higher appetite for risk, and so on. In the end, SaaS owners are trading important …Read More

Understanding the Risk of Debt Financing

Do the Benefits Outweigh the Risks? There are many benefits of debt financing. Staying in control of your business’ day-to-day operations as well as its long-term goals. Regaining control of your business if equity is already in employees’ or investors’ hands. Extending your cash runway between fundraising rounds. Supplementing an existing strong cash flow to …Read More

Three Flexible Debt Financing Advantages for SaaS Companies

We recently explored four strategic reasons why companies take on debt as opposed to other forms of financing, like equity financing or bank loans, debt financing provides a financial foundation for SaaS companies to achieve certain goals. These were situational and relative to where SaaS companies stood in their growth journey. Here, we’ll explore three …Read More

Four Reasons Why Companies Take on Debt

Wait, Isn’t Debt a Bad Thing? You’re borrowing money that has to be repaid. You also have to pay interest on that debt, resulting in having to pay back more than what was borrowed in the first place. This can’t be a good thing! So why would companies take on debt when those funds could …Read More

What Are the Real Uses and Benefits of Debt Financing?

Venture debt financing is a strategic part of a growing SaaS company’s financial arsenal. Practical and useful for young businesses as well as those with annual revenues well into the millions, the benefits of debt financing extend well beyond just being a source of funding for growth. They include flexibility and options — benefits that …Read More

How to Scale a SaaS Company with Debt Financing

Debt Financing Should Be Used for Growth If you’re researching how to grow a SaaS company, particularly during the scaling stage, you’re going to come across a lot of recommendations and financing options. These include everything from bank loans and debt financing to angel investors and venture capital sponsorship. You may have even obtained funding …Read More