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flexible SaaS financing.
Fuel growth with SaaS financing.
Software-as-a-Service (SaaS) companies with monthly and annual subscription fees have great long-term potential, but their model also creates significant cash flow challenges. SaaS businesses incur expenses today to make sales that translate into revenue in the future. This can create a real cash crunch, leading to the need for SaaS financing. That’s where River SaaS Capital comes in.
Traditional banks resist lending to SaaS businesses because they often lack the required collateral assets or balance sheets. Equity financing is an option, but often requires you to give up large percentages of ownership to investors.
Our SaaS financing options hit the sweet spot, providing you with access to capital appropriate for your current growth status and future goals — initially, via non-dilutive term loans and as appropriate over the long-term, via equity.
“We have a long-standing relationship with the principals of River SaaS Capital and they understand our business and growth objectives wholly. They are not just capital providers, but our business partners who deliver flexible funding strategies and operational expertise.”
CEO, Banyan Technology
SaaS Financing Solutions
How we help
With flexible SaaS financing solutions and a partnership-based approach, River SaaS Capital lends on terms that are agreeable to you. We often fund companies who are earlier in their growth cycle than our counterparts and we also back companies that lack institutional venture capital sponsorship.
Who we finance
We look for SaaS companies with Monthly Recurring Revenue (MRR) of at least $150k and strong customer retention rates. Current profitability is not required.
How SaaS financing works
River SaaS lends between $500K–$1.5M (typically 4x MRR) to qualified new borrowers. Initially, funds are usually structured as 36- or 48-month term loans with principal and interest paid monthly, but alternatives are available, including interest-only for a period of time, and step-up structures increasing the payment as the company scales. We pride ourselves on our ability to grow with our portfolio companies over time, with the ability to lend up to $4M of either debt or equity to established borrowers.
Why River SaaS Capital
Easy Application Process
Our application process is designed to grant access to capital faster than other SaaS financing options.
Flexible Funding Structures
We provide truly flexible forms of funding, offering alternatives such as interest-only, and revenue-sharing on post-investment earnings. In addition, we allow portfolio companies to re-borrow paid principal and receive tranches from the committed loan amount on a scheduled basis to avoid paying interest on the entirety of the loan.
Long-Term, Relationship-Based Approach
River SaaS prides itself on its ability to grow with its portfolio companies over time, with the ability to provide up to $4M of either debt and/or equity to established borrowers.
No Exit Strategy Required
We do not require a strategy for your company to be acquired in order to qualify for debt.
Your SaaS Financing Journey Starts Now
At River SaaS Capital, our goal is to help our borrowers grow. Cash is only one piece of the puzzle. Our team has years of experience in business development, operations and management of successful businesses — experience we bring to bear with each one of our portfolio clients.