Working capital for technology companies, SaaS startups, and digital agencies — payroll, cloud infrastructure, and growth capital.
We fund technology & saas businesses across the country. One application gets your file in front of 70+ lenders competing to offer you the best terms — no collateral required, all credit profiles considered.
Tech and software businesses operate on completely different financial primitives than service businesses. Revenue is recurring (MRR/ARR). Gross margins are high (70–90%). Cost structure is heavy on people and cloud infrastructure, light on physical assets. Working capital cycles are short or nonexistent (no inventory, no AR float for SaaS billing monthly). And growth is typically funded by burning through cash today to acquire customers whose lifetime value will pay back the investment over 18–36 months.
The lender market has bifurcated to fit. On one side: Revenue-Based Financing, venture debt, and SaaS-specific lenders (Capchase, Pipe, Lighter Capital, Founderpath) underwriting to MRR/ARR, NRR, gross margin, and CAC payback. On the other side: traditional MCAs and term loans that often misprice tech businesses because the bank-statement underwriting model doesn't capture deferred revenue accounting or recognize ARR as collateral.
| Product | Fit | Notes |
|---|---|---|
| Revenue-Based Financing | Best fit for SaaS | Underwrites to MRR/ARR, NRR, churn. 1.20–1.40× multiples typical. Repayment % of monthly revenue, term ~18–36 months. Best for $15K+ MRR. |
| Venture Debt | For VC-backed startups | Available after a Series A typically. 8–12% APR + warrants. Sized at 25–40% of last equity round. Strong fit when extending runway. |
| Line of Credit | Cash management | Bank LOC for established profitable SaaS. 8–14% APR. Asset-based against ARR contracts can hit $1M+ limits. |
| SBA 7(a) | Acquisitions only | Tech acquisitions of $250K–$5M can be funded via SBA. Limited because SBA doesn't recognize software/IP collateral well. |
| Equipment Financing | Hardware-heavy only | Servers, manufacturing test equipment for hardware startups. Software-only businesses rarely fit. |
| MCA | Generally bad fit | Daily ACH conflicts with SaaS revenue model. Pricing doesn't reflect SaaS unit economics. Use only as bridge financing emergency. |
The 6 most common capital deployments we see across our tech & software clients, with the funding product that fits each.
Need 6–12 months runway extension before Series A close. Venture debt or RBF based on growth metrics.
AE economics work; need $400K to hire 4 reps and ramp. RBF based on existing revenue.
Paid acquisition with 8–14 month CAC payback. RBF or LOC tied to revenue growth.
Tuck-in acquisition $200K–$1M. SBA 7(a) if time allows; term loan if not.
Components, manufacturing run financing. Inventory-secured term loan or PO financing.
Smooth annual contract billing collection cycles. Bank LOC at 8–14% APR.
Beyond the standard credit + revenue + time-in-business thresholds, tech & software businesses face industry-specific underwriting variables.
Depends on stage. Pre-PMF: equity. Post-PMF, $15K–$80K MRR: Revenue-Based Financing (Capchase, Lighter Capital, Founderpath). $80K+ MRR with venture backing: venture debt + RBF combo. $1M+ ARR profitable: bank LOC + term loans. SaaS-specific lenders price 30–50% cheaper than generic MCAs because they understand the unit economics.
Yes, but usually shouldn't. MCAs underwrite to bank deposits and apply daily ACH repayment, which conflicts with SaaS billing patterns and forces cash out faster than monthly subscription revenue comes in. Generic-MCA pricing (60–110% APR) ignores that your gross margin is 70–85% — unit economics that justify cheaper capital. RBF at 1.30× multiple over 18 months implies ~22% APR — dramatically cheaper than an MCA covering the same need.
Typical RBF thresholds: $15K+ MRR (some lenders go to $5K MRR), 9+ months of revenue history, low churn (<3% monthly), >40% gross margin, customer base diversified (no single customer >25%), Plaid bank verification + revenue platform integration (Stripe, Shopify, QuickBooks). Some RBF lenders also require >90% net revenue retention.
Venture debt is a term loan extended to VC-backed startups, typically sized at 25–40% of the last equity round. Rates 8–12% APR plus warrants for 0.5–2% of the next round's equity. Term 36–48 months with interest-only period of 6–18 months. Use case: extending runway or bridging to next round without diluting equity. Lenders include SVB Capital, Hercules Capital, Western Technology Investment, and various credit funds.
Generally no for traditional credit. Bank LOCs require profitability and strong cash flow. Some banks (SVB before its collapse, First Republic before its collapse, Mercury post-2023) have pivoted to ARR-secured lending for venture-backed companies, but underwriting is still equity-backed in practice. For unprofitable startups, RBF and venture debt are the structurally appropriate non-equity options.
Yes for acquisitions of other tech businesses, real estate purchases, and equipment. Limited for working capital because SBA underwriting models don't handle SaaS deferred revenue accounting cleanly. The 7(a) program is most flexible. The 504 program fits real estate or significant fixed-asset purchases. Tech businesses generally pass SBA size tests (typically <500 employees or revenue under industry thresholds).
Most non-equity funding requires revenue history. Pre-revenue tech companies typically fund via friends-and-family equity, accelerators (YC, Techstars), angel investors, or SBA Microloan ($500–$50K, slow process). Once you cross $5K MRR with 6+ months of growth, RBF lenders begin to engage.
RBF: 3–7 days from data-room access to funded. Venture debt: 4–8 weeks of underwriting plus 1–2 weeks closing. Bank LOC for profitable SaaS: 4–8 weeks. SBA 7(a): 45–90 days. The fastest non-equity option is RBF for SaaS businesses with clean Stripe/QuickBooks integrations.
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