Financing Your SaaS Startup Using Debt
How to Choose the Right Type of Debt Financing for Sustainable Growth
Debt financing can be a quick and easy solution to funding your SaaS startup’s runway to grow. Startup business loans, lines of credit, MCA loans, and revenue-based loans are just a few debt financing options you may have already seen or considered.
Not all debt is created equal, though, particularly when you’re trying to scale a new business.
If you’re just comparing top-line costs and interest rates, you’re missing opportunity costs baked into the terms and conditions that are easy to overlook, harder to quantify, and potentially detrimental to your business. For example:
A shorter payback period can quickly drain your cash on hand, putting you right back where you started, or worse.
Restrictive covenants can force you to operate the business in ways that stifle growth and innovation.
Some lenders may require stock warrants, which can end up being very costly later.
How do you find the right solution that meets your immediate cash flow needs and supports your startup’s long-term goals, while also minimizing your costs?
We created a comprehensive resource that shows SaaS entrepreneurs how to do just that.
Lighter Capital’s Financing Your SaaS Startup Using Debt is an easy-to-use guide that will help you successfully navigate a broad field of debt financing instruments, so you can worry less about cash flows and stay focused on hitting your next milestone.
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Get into debt to get growing
The financing decisions you make at any point in your startup’s lifecycle help determine its trajectory. Get in touch with one of Lighter Capital’s experienced Investment Advisors to talk about cash flows, burn rates, capital planning, and other entrepreneurial growth strategies.
Ready to fuel a brighter future?
Debt vs. equity financing for SaaS startups
How to compare debt financing options
Assessing loan offers and lenders
What's inside?
Between traditional banks, online lenders, tech banks, and other specialty capital providers, there’s almost an infinite number of debt financing options from which SaaS startups can choose. Just don’t sign on the dotted line before making sure the terms of your agreement don’t add unnecessary risk for you and your business, which may turn out to be very costly later.
Our guide, Financing Your SaaS Startup Using Debt, gives you the tools and information you need to compare and evaluate the myriad of debt funding solutions available today, so you can grow a healthy, sustainable business and protect the value of your equity.
How to compare debt financing options
Loan structures and terms vary from lender to lender, and they directly impact how your business operates over the life of the loan. We pose key questions that will help you ensure your debt financing solution aligns with how you’ll use the funds for short-term needs and to fulfill your long-term growth strategy. You’ll learn why that’s such an important yet often-overlooked step in the process.
Assessing loan offers and lenders
Interest rates and APR don’t show the full picture. We give you a framework for comparing your true cost of capital, which includes intangible costs and restrictions, as well as the time value of money. Then we walk you through several fundraising examples so you can fully understand the mechanics of this critical decision making process.
