Growth Capital For Cloud Service Providers
SLG’s cash flow financing program eliminates or delays the need for additional equity
SLG’s debt-based financing program turns cash flow agreements into working capital without giving up equity. Service provider’s have traditionally funded their companies through equity placements and have not had access to debt financing. SLG’s debt solution provides the Service provider with a financing alternative to grow their business while maintaining its existing ownership structure.
SLG provides debt financing in the form of a term loan that is tied to your revenue stream. This “revenue financing” structure, combined with our unique underwriting criteria, makes us the right partner for growing a business.
Use SLG’s financing in lieu of an equity capital round
The specific benefits of our approach include:
- Higher advance rates — Capital availability is based on a multiple of your monthly recurring revenue (MRR) — typically 4x to 6x MRR
- Capital availability that grows with your business — The amount of capital that you can draw increases as your revenue grows
- Long-term committed capital — Your business can draw down new capital over the life of the commitment period — typically up to 24 months. At the end of the commitment period the facility can be renewed
- No balance sheet covenants or cash reserve requirements
- Structure – requires monthly reporting as well as agreements with your bank (lockbox) and hosting provider
For more information on our SaaS Lending Group services please contact:
Tel: 905-660-1898 ext 225