Tag

SaaS financing

5 insights

A two-point range showing that a company at $500,000 of monthly recurring revenue can access $2.0 million at a four times multiple or $4.0 million at eight times, a $2.0 million spread on identical revenue.

Most Debt Is a Fixed Number. This One Is a Multiple of MRR.

A term loan is sized once and never changes. A committed facility against recurring revenue is sized as a multiple of monthly revenue, and availability rises as that revenue rises, without a second underwriting.

Financing Strategy Borrower Advisory

Two stepped areas showing monthly revenue still under contract over the next 24 months for two companies with identical $6.0 million ARR: a 12-month contract book holding $2.5 million of remaining contracted value and a 24-month contract book holding $7.0 million.

ARR Reports $6 Million. The Facility Sees $2.5 Million.

Two recurring-revenue companies each report $6.0 million of ARR. One is offered a $2.0 million facility and the other $1.0 million. The difference is contract length, and it does not appear in any metric either company reports.

Financing Strategy Borrower Advisory

Two point range chart contrasting 18 months of runway raised at close against a median 26 month interval to the next round, with the eight month shortfall marked in navy.

You Raised 18 Months of Runway for a 26-Month Gap.

The median interval from seed to Series A has stretched to roughly 2.2 years. A company that closed with 18 months of cash is eight months short before it does anything wrong. What the decision looks like at month 10 against month 16.

Business Case & ROI Borrower Advisory

Slope chart comparing gross revenue retention for private B2B SaaS between the prior period and 2026, showing the median falling from 88 percent to 84 percent and the 75th percentile falling from 95 percent to 91 percent, both lines down four points.

Retention Fell Four Points. Your Borrowing Capacity Followed.

Median gross revenue retention for private B2B SaaS fell from 88 to 84 percent in 2026, and the top quartile fell just as far. For a company planning to borrow against contracted revenue, that four point move is a borrowing base question.

Capital Markets & Trends Borrower Advisory

Waffle grid of 100 squares with 20 shaded navy, showing the 18 to 22 percent equity a 2026 Series A takes versus 0 percent dilution on Recurring Revenue Debt.

The 20% You Give Up for Money You Could Borrow: The Series A Math Founders Skip

A 2026 Series A takes 18 to 22% of the company at a reset valuation. For a recurring-revenue business that already clears the revenue bar, that dilution is a choice, not a requirement.

Borrower Advisory Financing Strategy

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