Alternative financing for SaaS companies.
Our SaaS credit facilities are fast, flexible financing for software companies. As an alternative to equity we offer speed to close, scalable capital, and a friendly partner that understands the unique needs of your business.
![continue-how-factoring-works continue-how-factoring-works](https://joinharper.wpenginepowered.com/wp-content/uploads/2016/05/Grey-arrow-down-e1464845397893-1.png)
WHY SaaS LENDING.
![Credit_Line](https://joinharper.wpenginepowered.com/wp-content/uploads/2016/05/Credit_Line.jpg)
HIGHER ADVANCE RATE
Capital availability is based on a multiple of your monthly recurring revenue – typically 3x to 6x MRR.
![Invoice Factoring for Growth Fast Funding for Growth](https://joinharper.wpenginepowered.com/wp-content/uploads/2016/06/factor-for-growth.png)
CAPITAL THAT SCALES WITH YOUR BUSINESS
Capital availability that grows with your business — The amount of funds that you can draw increases as your revenue grows. Capital available from $50,000 to $10,000,000.
![24_hours_funding](https://joinharper.wpenginepowered.com/wp-content/uploads/2016/05/24_hours_funding.jpg)
LONG TERM OR SHORT TERM CAPITAL
Your choice of long term or short term – Funds are typically drawn down over 1 year under the initial credit facility, and can be renewed (and upsized) as they’re paid down and / or as MRR grows.
![Customer_Payments](https://joinharper.wpenginepowered.com/wp-content/uploads/2016/05/Customer_Payments.jpg)
PAY FOR WHAT YOU USE
Efficient use of capital — Capital is drawn down as your business needs it, thereby reducing interest expense.
![Pie Chart](https://joinharper.wpenginepowered.com/wp-content/uploads/2017/02/Pie-Chart-e1488154375652.jpg)
AVOID DILUTION AND MAINTAIN CONTROL
Much cheaper and easier to deploy than raising equity. Skip the fundraising paperwork and legal fees. Simple and transparent pricing — cost of capital of 7% to 10%.
WHAT WE LOOK FOR.
Don’t need to be venture backed, profitable or billing customers monthly.
HOW WE COMPARE.
Source | Funding Size | Interest and Fees | Process |
---|---|---|---|
Harper SaaS Lending | $50k – $10M | 7% – 10% cost of capital. Paid down as a % of revenue. Payback scales up or down with revenue. | 2-4 weeks underwriting process. |
Banks & SBA’s | Typically over $1M | Annual interest rates starting at 5%, if approved. | 2-4 months process. Lack of understanding of SAAS model. Low approval rate for startups, particularly without traditional assets. Restrictive covenants. |
Venture Capital | $250k to well over $10M depending on stage | Angels and VCs underwrite to 15x-30x returns. Highest cost of capital available that significantly dilutes ownership. Possible loss of control. | Months of fundraising, negotiation, and diligence. Occupies significant founder time and resources. |