Yes, it sometimes takes a little extra effort with some specific lenders of course but very doable. Overall a SaaS business to most banks is a subscription bus

Yes, it sometimes takes a little extra effort with some specific lenders of course but very doable. Overall a SaaS business to most banks is a subscription business much like a local gym, martial arts studio, etc so it isn't a foreign business model like tech people think, it is a little harder to loan against those models without any track record however. So if you have no clients and no proof it works no one (even in tech banking) will debt finance you without going the investor/angel route. If using collateral they ask a lot less questions of course, but they'll still want to see you have a real business. Anytime you work with banks you have to be prepared to show financial statements, subscriber growth, retention, attrition etc as they look at that to gauge risk. I got my last consulting business financing through a local bank so I could have a line of credit to smooth out payroll/operational costs, because I had a problem in a prior business that failed where it was cash flow not revenue that forced us under. In that business we had plenty of receivables but not enough float to hold us through the long 30-60 day payment cycles of many clients at the time. So when I did a new consulting business (that was successful) I made sure to get a line of credit as quickly as possible from a local bank that then helped me smooth out operational costs/payroll while collecting my payments because no way factoring was going to work. In general the "best" rates in factoring are for physical shipped products, worst rates are for services since there is way more risk on services.