It can be challenging to select the funding model … Capchase The Logic .
Get up to a year of in advance capital instantly, providing you the flexible financing you need to grow your business and scale. We provide the needed financing you require at that moment. Within 24 hours, we evaluate the funding needed and deposit it quickly to your account.
Capchase deals with these users and organization types: Mid Size Service, Small Company, Business, Freelance, Nonprofit, and Government.
what’s much better owning 100 of a 10 million
company or 15 of a 100 million dollar
company the answer how about the very best of
both
you’re right with standard financing
that’s not actually an option previously
keep your 100 with cap chase we use information
to make funding much faster fairer and more
versatile based upon your future
predictable earnings and then we cover it
all up with a single transparent fee
so let’s get this party started at
There is constantly a point in time when a start-up’s founders, senior management team, and top financing executives examine strategies for how to scale the business to the next level and brochure what’s required to do that effectively. Protecting financing at an early stage can accelerate development and lead to attainable and quantifiable success. Eventually, financing managers and the tactical planning team need to select the right funding source to assist the business reach its objectives.
that management sets for the organization. Weighing the threats and competitive threats in a well balanced and intelligent method is vital as it can decide the future of your company The ramifications of selling equity, managing irregular capital, rates of interest motions, and the need to make prompt payments to lenders are among the elements to consider, just among others.
That stated, with the rise of new and more sophisticated financing alternatives that put the business interests of start-ups and midsize companies initially, there’s generally a method to figure out an option that’s a good fit. It’s important to examine the various financing choices that are readily available to a business’s founders, management accounting professionals, and finance officers and what factors to consider they need to make for both the long and brief term.
Lobo here co-founder at traction and boast AI delighted to host Miguel Fernandez co-founder and CEO of capchase a supplier of non-dilutive growth capital for repeating Income business essentially helping companies grow without quiting that valuable Equity you took so long to construct Miguel welcome to traction thank you a lot for joining us Hey Lloyd thank you a lot for having me it’s fantastic to be here yeah I’m really thrilled to share more awesome I’m excited to get into your backstory so let’s kick this off how did you come together with your Founders why cap Chase what else did you consider from what I understood you’re a first time creator first time founder it resembles you hit a crowning achievement out of the park out of the gates I love it man that’s fantastic well as soon as they won you understand like it’s never the Home Run never like never ever counts until the video game is over right generally so so so yeah um we are 4 co-founders you understand and it’s funny because we have actually all met through first as buddies you know and then as co-founder so uh there’s three of us that collaborate at the exact same SAS business in in Spain so we all joined when it was really early I joined as the first person in sales and there are 2 people joined us that as item managers generally and we see the business from no to a few million err over three years and after that we left um at the same time roughly I went to service school and I went to organization school on the other one went to do a stint in VC with the goal of going to organization school afterwards so when I go to organization school I I entered into Harvard and you know I was really thrilled about it my entire objective was to go there to find out more about how to end up being a creator and then hopefully introduce something upon graduation and the one that I landed there I was investigating currently a concept with among these co-founders and it was authentic idea it had absolutely nothing to do or extremely little to do with what we’re doing now however you understand that was the beginning of the journey and the novice Journey or the Insight that we had was that hey there are in particular verticals there are a great deal of sequential payments you understand and circular payments between companies and today you just need to wait on that series to establish or you know like there’s no one simplifying those circular payments so we thought of hey why do not we do something similar to like a split wise or companies in verticals such as you know fried or Logistics or construction you know you have a ton of parties that need to wait on various payments like they’re all associated with one way or another so envision you have a platform and then you have company a post Company B 100 and Company B House Business c a hundred dollars in reality with this platform what would occur is a business.
a would pay a hundred the platform Business B absolutely no they would get they would pay no or get no and after that company C we get a hundred dollars so when we’re speaking with big companies they all liked it but it was the common like cold start problem I’m like hey this is excellent when everyone’s in the platform but till then it’s it’s pretty tough to get individuals to do anything so it was everything about hi how do we get more data how can we kind of kick start this platform um without utilizing the platform to start with so it was all about getting more information and to get more data we got to 2 conclusions it resembles we either get information through providing an Analytics tool a workflow tool or we offer a financing we have a financing and we get the people or data give us data in order to get financing so you know we began doing that like checking out increasingly more and more and then what we need what we saw is that we understood more about sales than anything else we were actually thinking about fintech and specifically in financing and you know like we would take a look at different modes various verticals and so on for 2 weeks at a time if we found enough stuff we would opt for two more weeks if we didn’t would cut it and then in January 2020 we had the the idea you understand which is funny of providing this this SAS business at all so they might extend terms to the customers however constantly get the money in advance so we’re fixing the funding payment properties companies have which is they have in advance costs to obtain customers and then they make money months of the month right so to avoid that cash card that every SAS company faces which we dealt with in the past in the previous experience the goal was to give them a tool so they could state to the consumer hello look the rate is 100
per year and if you want to pay monthly terrific usage capshase you know um and after that Founders enjoy that they resembled hi guys this is incredible this is the Holy Grail of SAS due to the fact that I have to do discount rates so my ACV boosts and I can close sales faster due to the fact that I’m providing versatile payment terms so it’s like the Holy Grail you understand you increase ACV you reduce cell cycle usually it resembles a compromise you know and after that the next thing they said resembled hey why do not I do this for all my client base instead of for each new consumer that I get right so why don’t I do this for my 300 clients instead of doing it for the internet for the 10 brand-new consumers I get months of a month so then we saw what they wanted was to convert their ARR or the client base into upfront funding to be less dependent on Equity as I stated the beginning yeah alright this is what we’re going to start with and then we’re going to find out a lot so we’re gon na do the rest afterwards which’s when the fourth co-founder joined who has a pal at HBS and after that male we started dealing with it like crazy and and dropped out what is your long-term Vision so it started with you know you landed on this hate you if you’re resting on ARR we understand the business’s uh churn we know the company’s retention gross margins Etc so I can take their ARR and lend them in advance x times times x ARR or times x mrr but what is a long-term vision of of the business so for us it’s it’s it’s or it’s all around SAS companies right like we just way with such companies deliberately right so we withstood the
desire to go and work with funding you understand with any vertical we only deal with SAS so our goal is to develop several products for SAS so we start with financing and it’s terrific since companies truly count on us we really like a partner and we we help them to not just get financing but work better in a more effective way and through that we’re finding you know opportunities to broaden you know in the transaction of a SAS product