It can be challenging to choose the financing model … Revenue-based Financing For Smes .
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Capchase deals with these users and organization types: Mid Size Organization, Small Company, Enterprise, Freelance, Nonprofit, and Government.
what’s much better owning 100 of a 10 million
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that’s not really a choice previously
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There is constantly a moment when a start-up’s creators, senior management group, and leading financing executives assess strategies for how to scale the company to the next level and brochure what’s needed to do that successfully. Securing financing at an early stage can accelerate development and lead to measurable and attainable success. Eventually, financing managers and the strategic planning team have to choose the right funding source to help the business reach its goals.
that management sets for the company. Weighing the threats and competitive hazards in a smart and well balanced way is essential as it can decide the future of your company The implications of selling equity, handling irregular cash flow, rates of interest movements, and the need to make prompt payments to loan providers are among the aspects to consider, just to name a few.
That said, with the increase of new and more sophisticated funding options that put business interests of start-ups and midsize companies initially, there’s generally a method to figure out a solution that’s a good fit. It is necessary to examine the various funding choices that are available to a company’s creators, 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 provider of non-dilutive growth capital for recurring Profits companies generally assisting 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 great to be here yeah I’m extremely excited to share more awesome I’m thrilled to enter your backstory so let’s kick this off how did you come together with your Creators why cap Chase what else did you think about from what I understood you’re a very first time founder first time founder it resembles you struck a crowning achievement out of the park out of the gates I love it man that’s amazing well as quickly as they won you know like it’s never the Home Run never ever like never counts up until the game is over right essentially so so so yeah um we are 4 co-founders you know and it’s amusing because we’ve all met through first as buddies you know and then as co-founder so uh there’s 3 of us that interact at the exact same SAS company in in Spain so all of us joined when it was extremely early I joined as the very first person in sales and there are two individuals joined us that as item managers basically and we see the company from no to a couple of million err over three years and then we left um at the same time roughly I went to organization school and I went to business school on the other one went to do a stint in VC with the goal of going to service school afterwards so when I go to organization school I I got into into Harvard and you know I was extremely thrilled about it my whole goal was to go there to find out more about how to end up being a founder and after that ideally launch something upon graduation and the one that I landed there I was looking into already an idea with one of these co-founders and it was authentic concept 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 newbie Journey or the Insight that we had was that hey there are in particular verticals there are a great deal of sequential payments you know and circular payments between business and today you just have to wait for that sequence to establish or you know like there’s nobody simplifying those circular payments so we considered hi why do not we do something comparable to like a split wise or business in verticals such as you know fried or Logistics or building you know you have a ton of parties that have to await different payments like they’re all involved in one way or another so envision you have a platform and after that you have company a post Company B 100 and Business B Home Company c a hundred dollars in reality with this platform what would happen is a company.
a would pay a hundred the platform Company B no they would get they would pay zero or receive absolutely no and after that business C we get a hundred dollars so when we’re speaking to large companies they all enjoyed it however it was the normal like cold start problem I’m like hey this is great when everyone remains in the platform however till then it’s it’s pretty difficult to get individuals to do anything so it was everything about hi 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 everything about getting more data and to get more information we got to two conclusions it resembles we either get data through using an Analytics tool a workflow tool or we offer a financing we have a funding and we get the information or individuals offer us information in order to get financing so you know we began doing that like checking out increasingly more and more and after that what we require what we saw is that we understood more about sales than anything else we were actually interested in fintech and specifically in financing and you know like we would look at different modes various verticals and so on for two weeks at a time if we discovered enough things we would choose two more weeks if we didn’t would cut it and after that in January 2020 we had the the concept you know which is amusing of providing this this SAS business at all so they could extend terms to the clients but always get the cash up front so we’re fixing the financing payment possessions companies have which is they have in advance expenses to acquire consumers and then they earn money months of the month right so to avoid that cash card that every SAS company deals with which we dealt with in the past in the previous experience the objective was to provide a tool so they could state to the consumer hi look the cost is 100
per year and if you wish to pay monthly excellent usage capshase you know um and after that Founders like that they resembled hello people this is remarkable this is the Holy Grail of SAS due to the fact that I have to do discounts so my ACV boosts and I can close sales much faster due to the fact that I’m using flexible payment terms so it resembles the Holy Grail you understand you increase ACV you decrease cell cycle usually it’s like a trade-off you know and then the next thing they said resembled hello why do not I do this for all my client base instead of for every new client that I solve so why do not I do this for my 300 customers instead of doing it for the internet for the 10 new clients I get months of a month so then we saw what they wanted was to convert their ARR or the consumer base into upfront funding to be less based on Equity as I stated the starting yeah fine this is what we’re going to start with and after that we’re going to discover so much so we’re gon na do the rest afterwards and that’s when the 4th co-founder joined who has a pal at HBS and then male we started dealing with it like crazy and and left what is your long-lasting Vision so it started with you understand you landed on this hate you if you’re resting on ARR we know the business’s uh churn we understand the business’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-lasting vision of of the business so for us it’s it’s it’s or it’s all around SAS business right like we just method with such companies deliberately right so we resisted the
urge to go and work with funding you know with any vertical we only deal with SAS so our objective is to develop multiple products for SAS so we begin with funding and it’s terrific due to the fact that business really rely on us we actually like a partner and we we help them to not just get financing but work much better in a more efficient way and through that we’re finding you know opportunities to expand you understand in the transaction of a SAS item