It can be challenging to choose the financing model … Alternative Lending Group .
Get up to a year of in advance capital immediately, giving you the flexible funding you need to grow your business and scale. We offer the needed financing you need at that minute. Within 24 hours, we examine the funding required and deposit it quickly to your account.
Capchase deals with these users and company types: Mid Size Company, Small Company, Business, Freelance, Nonprofit, and Government.
what’s better owning 100 of a 10 million
company or 15 of a 100 million dollar
company the response how about the very best of
you’re right with traditional financing
that’s not actually a choice until now
keep your 100 with cap chase we use information
to make financing quicker fairer and more
flexible based upon your future
predictable profits and then we wrap it
all up with a single transparent cost
so let’s get this celebration began at
There is constantly a moment when a start-up’s creators, senior management team, and leading financing executives examine 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 speed up growth and lead to achievable and measurable success. Eventually, financing supervisors and the tactical planning group need to decide on the right funding source to help the business reach its objectives.
that management sets for the company. Weighing the dangers and competitive dangers in a smart and well balanced method is essential as it can choose the future of your company The ramifications of offering equity, managing irregular cash flow, interest rate movements, and the requirement to make prompt payments to loan providers are among the factors to think about, simply to name a few.
That stated, 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 typically a way to find out an option that’s an excellent fit. It’s important to investigate the different funding options that are available to a company’s founders, management accounting professionals, and finance officers and what factors to consider they require to produce both the long and brief term.
Lobo here co-founder at traction and boast AI excited to host Miguel Fernandez co-founder and CEO of capchase a supplier of non-dilutive growth capital for recurring Income companies basically helping companies grow without giving up that valuable 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 fantastic to be here yeah I’m really excited to share more remarkable I’m excited to enter 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 comprehended you’re a very first time creator first time creator it’s like you hit a crowning achievement out of the park out of the gates I love it man that’s amazing well as soon as they won you know like it’s never the Home Run never ever like never ever counts till the video game is over best basically so so so yeah um we are four co-founders you know and it’s amusing since we’ve all fulfilled through first as friends you understand and then as co-founder so uh there’s three of us that collaborate at the very same SAS company in in Spain so all of us joined when it was very early I joined as the very first individual in sales and there are 2 people joined us that as product managers generally and we see the business from no to a few million err over 3 years and after that we left um at the same time roughly I went to service school and I went to business school on the other one went to do a stint in VC with the goal of going to business school later on so when I go to organization school I I got into into Harvard and you understand I was extremely delighted about it my whole goal was to go there to get more information about how to end up being a creator and after that hopefully release something upon graduation and the one that I landed there I was investigating currently an idea with among these co-founders and it was genuine idea it had nothing to do or extremely little to do with what we’re doing now but you understand that was the beginning of the beginner and the journey Journey or the Insight that we had was that hey there remain in certain verticals there are a lot of consecutive payments you know and circular payments in between companies and today you just need to wait on that sequence to establish or you understand like there’s nobody simplifying those circular payments so we considered hi why don’t we do something comparable to like a split sensible or companies in verticals such as you know fried or Logistics or building and construction you understand you have a lots of parties that have to wait on different payments like they’re all associated with one way or another so imagine you have a platform and after that you have company a post Business B 100 and Company B Home 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 no they would get they would pay zero or get absolutely no and after that company C we get a hundred dollars so when we’re talking to big business they all loved it but it was the normal like cold start problem I resemble hey this is great when everyone’s in the platform but till then it’s it’s quite tough to get people to do anything so it was everything about hey how do we get more data how can we sort of begin this platform um without utilizing the platform to start with so it was all about getting more data and to get more information we got to 2 conclusions it resembles we either get data through providing an Analytics tool a workflow tool or we provide a funding we have a funding and we get the people or information provide us information in order to get funding so you know we began doing that like checking out a growing number of and more and then what we need what we saw is that we understood more about sales than anything else we were really interested in fintech and particularly in financing and you understand like we would look at different modes different verticals and so on for 2 weeks at a time if we discovered enough things we would go for two more weeks if we didn’t would suffice 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 consumers however always get the money in advance so we’re fixing the funding payment assets companies have which is they have in advance costs to acquire clients and after that they make money months of the month right so to prevent that cash card that every SAS business deals with which we faced in the past in the previous experience the goal was to give them a tool so they could state to the client hi look the rate is 100
per year and if you wish to pay monthly fantastic use capshase you understand um and then Founders enjoy that they were like hello guys this is fantastic this is the Holy Grail of SAS since I have to do discount rates so my ACV boosts and I can close sales quicker since I’m providing flexible payment terms so it’s like the Holy Grail you understand you increase ACV you reduce cell cycle generally it’s like a compromise you know and after that the next thing they stated resembled hey why don’t I do this for all my client base instead of for every new consumer that I solve so why don’t 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 client base into upfront funding to be less based on Equity as I said the beginning yeah okay this is what we’re going to begin with and after that we’re going to discover a lot so we’re gon na do the rest afterwards and that’s when the fourth co-founder joined who has a pal at HBS and then man we started dealing with it like crazy and and dropped out what is your long-term Vision so it began with you understand you landed on this hate you if you’re resting on ARR we know the company’s uh churn we understand the company’s retention gross margins Etc so I can take their ARR and lend them up front x times times x ARR or times x mrr however what is a long-lasting vision of of the company so for us it’s it’s it’s or it’s all around SAS companies right like we just way with such companies intentionally right so we resisted the
urge to work and go with financing you understand with any vertical we only work with SAS so our objective is to develop several items for SAS so we start with financing and it’s terrific since business truly rely on us we actually like a partner and we we help them to not just get funding but work much better in a more efficient way and through that we’re discovering you know opportunities to expand you understand in the transaction of a SAS product