Software Financing

For growing technology companies, obtaining — or developing — the right software can be extremely costly. The high initial investment that your software requires makes it almost impossible to finance it without additional capital. 

Whether you are a Software as a Service (SaaS) provider or a technology company that needs new, expensive software to improve their products and expand their reach, RevTek can help. 

We know that the primary financing options for businesses — i.e. traditional debt and venture capital — are not designed with your business model in mind. 

Bank and business loans can be difficult to obtain because you need to be able to offer serious collateral. On top of that, the loan amounts usually are not sufficient, and the repayment terms are strict, which is difficult for a company whose income fluctuates from month to month.

Although you do not have to repay the lender, venture capital requires you to dilute equity and give up some control in the company. This can lead to all sorts of conflicts and potentially results in less profit in the long run for you when or if you decide to sell the business entirely. 

We have developed ideal revenue-based financing solutions for companies just like yours. Depending on your qualifications and needs, we can finance you with as much as $2 million to be repaid in monthly payments that fluctuate with your income. 

How Can You Use Our Financing? 

Whether you are just getting established or have already developed a consistent clientele, you may want to grow your company with initiatives that you can not finance out of pocket and we want to help.

The loans we offer to software and SaaS companies are for all sorts of growth initiatives. We want to invest in companies with proven business models aiming to expand, because the more your company increases its revenue over the course of the loan the quicker you will pay it off, benefitting you and us. It’s a win-win! 

Some of the most common projects that software companies undertake with their RevTek loans are: 

• Create and fill a new position 
• Initiate a new sales initiative  
• Develop a new software or improve an existing one 
• Purchase equipment 
• Restructure 

When you come to us looking for a loan, we want to see a specific plan in place of how our capital will allow you to generate more revenue in the long run. 

What Are the Terms? 

The idea is simple: we provide you with capital in exchange for a percentage of your future revenue until the debt is paid. The quicker you finish the payments, the better your company is expanding its revenue stream. 

Our terms are quite simple, too. Generally, we offer loans from $3MM to $30MM in growth capital, but never more than ⅓ of your company’s annualized revenue. Our financing options have repayment terms that range from 3-5 years. We don’t pin down an exact number to give you flexibility. 

We determine the repayment cap — or the actual cost of capital — based on the amount borrowed and the proven cash flow that your business has been generating. For most, this results in a cap of 1.3 to 1.8x the amount borrowed, all paid back within 3–5 years. 

There are some qualifications that you will need to be eligible for our services. 

• Proven predictable recurring revenue 
• $500,000 gross revenue monthly 
• Gross margins of at least 50% 

We are in the business of financing software businesses into their next phase of growth. With flexible monthly payments that do not require you to give up any control, we provide the ideal financing solution for software and SaaS companies. Get in touch with our team today!