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Clicking connect with "Quickbooks" results in a "500 - Server Error" fyi. But, interesting model. How does this deal compare with getting a loan from a bank (e
by whimsyzero 6y ago
Clicking connect with "Quickbooks" results in a "500 - Server Error" fyi.
But, interesting model. How does this deal compare with getting a loan from a bank (e.g. SVB)?
- Nlarch13 6y agoworking on this now, good catch. site is getting slightly overwhelmed. in terms of SVB, banks are a great option if you've raised VC. they can usually give you debt at 5-6% interest rates and 0.1-.5% warrant coverage but will only do a deal with you if you are "sponsored" (meaning you've raised VC). we're a much better fit for bootstrappers
- mritchie712 6y ago15% is not a terrible rate. If you look at companies like OnDeck[0] they start at 11% and don't lend to SaaS companies. There are also companies that already do this like "saas-capital"[1] which start at 12%. SVB won't lend until you're > $1M ARR. This just slightly above the market rate for a lower MRR SaaS company. 0 - https://www.ondeck.com/resources/top-10-faqs https://www.ondeck.com/resources/top-10-faqs 1 - https://www.saas-capital.com/our-approach https://www.saas-capital.com/our-approach
- Nlarch13 6y agoi've sent founders to all those firms (list of 50+ debt providers and their cost here: https://docs.google.com/spreadsheets/d/17M_zgfNG20Z-cqQ6SqxQYPEXkg4kg0hj-xNrPFBRg2w/edit?usp=sharing https://docs.google.com/spreadsheets/d/17M_zgfNG20Z-cqQ6SqxQ... SaaS Capital: Won't touch you unless you have $3m in ARR. Yes they can get down to 12% but they also take warrants. We'll start at $250k in ARR, and take no warrants. SVB: Banks will only lend to software companies if they have VC backing. (yes they lend at cheaper rates) OnDeck and Kabbage/others are at 25%+ interest rates. Read the terms.