How Do Software and SaaS Companies Fund Growth?

Why software and SaaS companies fund differently

SaaS businesses pay to acquire customers up front while revenue arrives monthly over the customer's lifetime, creating a cash gap that recurring, predictable revenue can nevertheless support. With little in the way of machinery or property to secure against, the funding question is not 'what asset do we buy?' but 'how do we bridge the gap between spending and being paid?'. That points toward working-capital facilities and unsecured lending rather than asset finance.

The facility that usually fits

For this trade the natural route is business loagainst recurring revenue. It is designed for the recurring, temporary gaps that asset-light businesses live with, and — in the case of invoice finance — it grows with the invoices as the business grows. Credicorp's unsecured lending to limited companies carries no personal guarantee, which matters when there is no asset to pledge. Read the underlying guide before committing.

Size it against real figures

Model the gap with our return on borrowing calculator and the using a loan for growth on Learn. For asset-light firms the key number is how long cash is tied up between paying costs and collecting fees — get that right and the facility sizes itself.

How lenders view the trade

Our sector page for software and SaaS companies sets out what a lender looks at when there are few hard assets, and the general answers on whether your sector affects borrowing and what lenders check give the wider picture. When ready, you can apply. General information, not an offer of finance.