4 ms·
15% 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
by mritchie712 6y ago
15% 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.