It can be challenging to select the funding model … Revenue-based Financing Example .
Get up to a year of upfront capital immediately, offering you the flexible funding you need to grow your business and scale. We offer the essential financing you need at that moment. Within 24 hours, we evaluate the financing needed and deposit it instantly to your account.
Capchase deals with these users and company types: Mid Size Organization, Small Business, Enterprise, Freelance, Nonprofit, and Government.
what’s better owning 100 of a 10 million
business or 15 of a 100 million dollar
company the answer how about the best of
you’re right with traditional financing
that’s not truly an option previously
keep your 100 with cap chase we utilize data
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There is always a point in time when a start-up’s creators, senior management team, and leading financing executives examine strategies for how to scale the business to the next level and catalog what’s needed to do that effectively. Protecting funding at an early stage can speed up development and cause obtainable and quantifiable 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 organization. Weighing the risks and competitive threats in a well balanced and intelligent way is important as it can decide the future of your company The ramifications of offering equity, managing inconsistent capital, rate of interest movements, and the need to make timely payments to lending institutions are among the factors to think about, simply among others.
That stated, with the increase of new and more advanced financing options that put business interests of start-ups and midsize business first, there’s typically a way to determine an option that’s a great fit. It is very important to examine the various funding options that are offered to a company’s creators, management accountants, and financing officers and what factors to consider they require to make for both the brief and long term.
Lobo here co-founder at traction and boast AI excited to host Miguel Fernandez co-founder and CEO of capchase a service provider of non-dilutive growth capital for repeating Income companies generally helping business 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 a lot for having me it’s excellent to be here yeah I’m very excited to share more amazing I’m thrilled 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 understood you’re a first time founder very first time founder it’s like you struck a crowning achievement out of the park out of the gates I love it man that’s incredible well as soon as they won you understand like it’s never the Home Run never like never counts till the video game is over ideal basically so so so yeah um we are four co-founders you know and it’s funny because we have actually all met through initially as good friends you know and then as co-founder so uh there’s three of us that interact at the very same SAS business in in Spain so we all signed up with when it was very early I joined as the first person in sales and there are two individuals joined us that as product managers basically and we see the business from zero to a few million err over 3 years and after that we left um at the same time roughly I went to company school and I went to service 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 service school I I got into into Harvard and you understand I was very delighted about it my whole goal was to go there to read more about how to become a founder and after that ideally release something upon graduation and the one that I landed there I was investigating already an idea with one of these co-founders and it was authentic idea it had nothing to do or really little to do with what we’re doing now but you understand that was the start 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 in between companies and right now you just need to await that series to establish or you understand like there’s no one streamlining those circular payments so we thought about hello why do not we do something comparable to like a split wise or business in verticals such as you understand fried or Logistics or building you know you have a lots of celebrations that have to await various payments like they’re all involved in one way or another so envision you have a platform and then you have company a post Company B 100 and Company B House Company c a hundred dollars in reality with this platform what would take place is a business.
a would pay a hundred the platform Company B absolutely no they would get they would pay zero or receive absolutely no and after that company C we get a hundred dollars so when we’re speaking to large companies they all liked it but it was the typical like cold start issue I resemble hey this is fantastic when everybody remains in the platform but until then it’s it’s pretty difficult to get individuals to do anything so it was all about hey how do we get more information how can we sort of begin 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 two conclusions it’s like we either get data through providing an Analytics tool a workflow tool or we provide a funding we have a financing and we get the individuals or information offer us data in order to get funding so you know we started doing that like exploring a growing number of and more and then what we require 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 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 things we would choose two more weeks if we didn’t would cut it and then in January 2020 we had the the concept 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 cash up front so we’re fixing the funding payment possessions companies have which is they have in advance expenses to get customers and after that they make money months of the month right so to prevent that money 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 might say to the client hi look the rate is 100
each year and if you wish to pay monthly excellent use capshase you understand um and after that Founders like that they were like hello people this is amazing this is the Holy Grail of SAS since I have to do discounts so my ACV boosts and I can close sales quicker due to the fact that I’m providing flexible payment terms so it resembles the Holy Grail you know you increase ACV you reduce cell cycle generally it’s like a trade-off you understand and then the next thing they said was like hey why do not I do this for all my consumer base instead of for every single brand-new client that I solve so why don’t I do this for my 300 customers instead of doing it for the internet for the 10 new customers I get months of a month so then we saw what they desired was to convert their ARR or the consumer base into upfront funding to be less depending on Equity as I said the beginning yeah fine this is what we’re going to start with and after that we’re going to find out a lot so we’re gon na do the rest later on and that’s when the fourth co-founder joined who has a friend at HBS and after that man we began working on it like crazy and and dropped out what is your long-lasting Vision so it started with you understand you arrived on this hate you if you’re sitting on ARR we understand the business’s uh churn we understand the business’s retention gross margins And so on 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 company so for us it’s it’s it’s or it’s all around SAS companies right like we just method with such business deliberately right so we resisted the
desire to work and go with financing you understand with any vertical we just deal with SAS so our goal is to develop numerous products for SAS so we start with funding and it’s fantastic because business actually depend on us we truly like a partner and we we help them to not simply get funding however work much better in a more effective method and through that we’re finding you know chances to expand you know in the deal of a SAS item