SaaS Capital recognizes the inherent value and stability built into the SaaS business model. Predictable high-margin revenue streams, in some cases supported by contracts, are the foundation of a credit-worthy business. They recognize that value and build credit products supported by your future cash-flow streams.
Many SaaS companies engage in long-term contracts not recognized as an asset under GAAP, but which can provide loan collateral if properly structured and operationally â€œback-stoppedâ€ by the lender. Their expertise in the SaaS business is not only financial, but operational as well. As part of our underwriting process, our technical specialists can assess the strength of your technical and customer support delivery capabilities. They will review the strength of your hosting provider as well. Itâ€™s no secret that growing a successful SaaS business is capital intensive. In fact, research shows that the capital required to grow a subscription license SaaS business is 50-70% greater than the perpetual license model.