It can be challenging to pick the funding model … Revenue Based Financing Agreement .
Get up to a year of upfront capital immediately, offering you the flexible financing you need to grow your organization and scale. We supply the required financing you require at that minute. Within 24 hours, we examine the financing needed and deposit it immediately to your account.
Capchase works with these users and organization types: Mid Size Company, 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 response how about the best of
you’re right with standard financing
that’s not actually a choice until now
keep your 100 with cap chase we utilize data
to make funding much faster fairer and more
flexible based on your future
foreseeable income and after that we cover it
all up with a single transparent fee
so let’s get this celebration began at
There is constantly a moment when a start-up’s creators, senior management group, and top finance executives evaluate methods for how to scale the company to the next level and catalog what’s needed to do that successfully. Protecting financing at an early stage can speed up development and result in achievable and measurable success. Ultimately, financing supervisors and the strategic planning team have to decide on the right funding source to help the business reach its objectives.
that management sets for the organization. Weighing the risks and competitive dangers in a smart and balanced method is essential as it can decide the future of your business The implications of offering equity, managing inconsistent capital, rates of interest motions, and the requirement to make timely payments to lending institutions are amongst the aspects to think about, simply among others.
That said, with the increase of brand-new and more advanced funding choices that put the business interests of start-ups and midsize companies initially, there’s generally a method to find out a solution that’s an excellent fit. It is essential to investigate the different funding options that are readily available to a business’s creators, management accounting professionals, and finance officers and what considerations they require to produce both the brief and long 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 recurring Earnings business basically helping companies grow without giving up that precious Equity you took so long to construct Miguel welcome to traction thank you a lot for joining us Hey Lloyd thank you so much for having me it’s great to be here yeah I’m really excited to share more awesome I’m excited to enter your backstory so let’s kick this off how did you come together with your Founders why cap Chase what else did you think about from what I understood you’re a first time creator very first time founder it’s like you struck a crowning achievement out of the park out of evictions I love it man that’s amazing well as soon as they won you understand like it’s never ever the Crowning achievement never like never counts until the video game is over ideal essentially so so so yeah um we are 4 co-founders you understand and it’s funny because we have actually all met through initially as buddies you understand and then as co-founder so uh there’s three people that collaborate at the exact same SAS business in in Spain so we all joined when it was very early I joined as the very first person in sales and there are 2 individuals joined us that as product supervisors basically 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 approximately I went to service school and I went to organization school on the other one went to do a stint in VC with the objective of going to service school afterwards so when I go to organization school I I entered into Harvard and you understand I was very delighted about it my whole goal was to go there to read more about how to end up being a creator and after that hopefully launch something upon graduation and the one that I landed there I was looking into currently a concept with among these co-founders and it was genuine concept it had absolutely nothing to do or really little to do with what we’re doing now but you know that was the start of the journey and the beginner Journey or the Insight that we had was that hey there are in certain verticals there are a lot of consecutive payments you know and circular payments in between companies and today you simply need to wait for that sequence to establish or you understand like there’s no one streamlining those circular payments so we considered hello why don’t we do something comparable to like a split sensible or companies in verticals such as you understand fried or Logistics or building and construction you know you have a lots of celebrations that have to wait for different payments like they’re all involved in one way or another so picture you have a platform and then you have company a post Business B 100 and Business B House Business c a hundred dollars in reality with this platform what would happen is a company.
a would pay a hundred the platform Company B zero they would get they would pay no or receive no and then business C we get a hundred dollars so when we’re talking to large business they all loved it but it was the normal like cold start issue I resemble hey this is terrific when everyone’s in the platform but up until then it’s it’s pretty tough to get people to do anything so it was all about hey how do we get more data how can we sort 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 information we got to 2 conclusions it’s like we either get data through offering an Analytics tool a workflow tool or we provide a financing we have a funding and we get the data or people provide us data in order to get financing so you understand we started doing that like checking out increasingly more and more and after that what we require what we saw is that we knew more about sales than anything else we were actually interested in fintech and particularly in financing and you understand like we would take a look at different modes different verticals and so on for 2 weeks at a time if we found enough things we would choose two more weeks if we didn’t would cut it and then in January 2020 we had the the idea you know which is amusing of providing this this SAS companies at all so they could extend terms to the clients however constantly get the cash in advance so we’re solving the funding payment assets business have which is they have in advance costs to obtain consumers and then they make money months of the month right so to avoid that cash card that every SAS company deals with which we faced in the past in the previous experience the goal was to provide a tool so they might state to the consumer hey look the rate is 100
per year and if you want to pay monthly terrific usage capshase you know um and then Founders like that they resembled hi guys this is incredible this is the Holy Grail of SAS since I have to do discount rates so my ACV increases and I can close sales faster since I’m providing flexible payment terms so it resembles the Holy Grail you understand you increase ACV you reduce cell cycle normally it resembles a trade-off you know and after that the next thing they stated resembled hi why do not I do this for all my customer base instead of for every new customer that I get right so why do not I do this for my 300 customers instead of doing it for the web for the 10 new consumers I get months of a month so then we saw what they desired was to convert their ARR or the consumer base into in advance financing to be less dependent on Equity as I stated the starting yeah alright this is what we’re going to start with and then we’re going to learn so much so we’re gon na do the rest later on which’s when the fourth co-founder joined who has a good friend at HBS and after that guy we started dealing with it like crazy and and dropped out what is your long-term Vision so it began with you understand you arrived at this hate you if you’re sitting on ARR we understand the business’s uh churn we understand 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 however what is a long-term vision of of the company so for us it’s it’s it’s or it’s all around SAS business right like we only way with such companies intentionally right so we withstood the
desire to work and go with funding you understand with any vertical we only work with SAS so our objective is to establish several items for SAS so we start with funding and it’s fantastic since companies truly rely on us we really like a partner and we we help them to not just get funding however work much better in a more effective way and through that we’re finding you know chances to expand you know in the deal of a SAS item