Types of Debt Financing

Learn the Types of Debt Financing for Your Growth Goals

At River SaaS Capital, we’re committed to providing you with the right debt funding. Whether you’re looking to accelerate sales and marketing efforts, stabilize operations, extend your runway, or buy back company shares, we have the debt capital solutions you need to achieve your goals.

Learn more about the types of debt financing we offer below. Additionally, be sure to learn about our lending criteria, which applies to all three options. If you have any questions, reach out to our investment team today.

types of debt financing Standard Installment

Standard Installment Loan

Consisting of principal and interest payments over a set period of time (typically 3–5 years), our standard installment loan provides you with debt capital in a lump sum. Tranches are also available, allowing you to take portions of the loan amount as needed while saving you on interest. At any time, principal that you have already repaid can be reborrowed.

types of debt financing interest only

Interest Only

Interest-only debt financing is intended for SaaS companies who want to hang onto as much of their revenue as possible following a debt investment. This allows the focus to be on growth and leveraging earnings to accelerate momentum. Exactly what it sounds like, interest-only means you’re only obligated to pay the interest on your loan at first. We’ll work with you to define an appropriate timeframe for this, after which the loan balance can be paid in full, or you can begin making principal and interest payments.

types of debt financing Step Up

Step-Up Structure

A step-up structure is similar to revenue-based financing in that payments increase as your company and revenue grow. However, with our step-up financing structure, the terms and conditions of this arrangement are calculated and disclosed up front based on your growth so you know exactly what to expect. With revenue-based financing, payments may change from month to month. Learn more about the differences between revenue-based financing and SaaS debt funding here.

Get Expert Insights and Support

If you have any questions about these types of debt financing, we’re here to help. Connect with us today, or apply online quickly and easily here.

Seed Stage Companies

Seed stage companies are generally pre-revenue or are not generating enough monthly recurring revenue (MRR) to qualify for venture debt.

But if you are generating at least some MRR and showing signs of product/market fit, we would love to talk about how we can help.

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Growth Stage Companies

Grow your business aggressively, while preserving your ownership stake in the process.

Have you achieved product/market fit and accelerating growth? Find out how our financing solutions can help you continue to grow, extend your runway or allow you some financial flexibility.

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Scaling Companies

Use our financing solutions to overcome growth plateaus to take your business to the next level.

As you continue to scale your business, find out how a partnership with River SaaS can help you enter new markets, onboard critical talent or expand your sales and marketing efforts.

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