It can be challenging to select the funding model … Revenue Based Financing Vs Mezzanine .
Get up to a year of upfront capital instantly, providing you the flexible financing you require to grow your organization and scale. We supply the necessary financing you need at that moment. Within 24 hours, we assess the funding required and deposit it immediately to your account.
Capchase works with these users and organization types: Mid Size Company, Small Company, Enterprise, Freelance, Nonprofit, and Government.
what’s much better owning 100 of a 10 million
business or 15 of a 100 million dollar
company the response how about the best of
you’re right with conventional financing
that’s not truly an alternative until now
keep your 100 with cap chase we use data
to make financing quicker fairer and more
versatile based upon your future
foreseeable profits and after that we cover it
all up with a single transparent cost
Let’s get this party started at
There is always a point in time when a start-up’s founders, senior management group, and leading finance executives assess methods for how to scale the business to the next level and catalog what’s required to do that effectively. Protecting funding at an early stage can accelerate growth and lead to measurable and obtainable success. Ultimately, financing managers and the tactical planning team need to pick the right funding source to assist the business reach its objectives.
that management sets for the organization. Weighing the threats and competitive hazards in a balanced and smart method is crucial as it can choose the future of your company The implications of offering equity, handling inconsistent cash flow, rates of interest movements, and the need to make prompt payments to loan providers are among the factors to consider, just to name a few.
That said, with the increase of new and more advanced funding alternatives that put the business interests of start-ups and midsize business first, there’s normally a method to determine an option that’s a great fit. It is necessary to examine the various funding alternatives that are offered to a business’s creators, management accounting professionals, and finance officers and what factors to consider they require to make for both the short and long 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 repeating Income companies 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 so much for having me it’s excellent to be here yeah I’m really delighted to share more incredible I’m delighted to get into your backstory so let’s kick this off how did you come together with your Creators why cap Chase what else did you consider from what I comprehended you’re a very first time founder first time creator it’s like you struck a crowning achievement out of the park out of the gates I like it man that’s fantastic well as quickly as they won you know like it’s never the Crowning achievement never like never ever counts till the video game is over ideal generally so so so yeah um we are 4 co-founders you understand and it’s funny due to the fact that we’ve all fulfilled through initially as friends you know and then as co-founder so uh there’s three people that work together at the same SAS company in in Spain so we all signed up with when it was very early I joined as the very first individual in sales and there are two individuals joined us that as item supervisors essentially 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 company school and I went to service 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 company school I I entered into into Harvard and you understand I was extremely excited about it my whole objective was to go there to read 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 currently a concept with among these co-founders and it was genuine concept it had absolutely nothing to do or very little to do with what we’re doing now however you understand that was the beginning 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 understand and circular payments in between companies and right now you simply need to await that sequence to develop or you understand like there’s nobody streamlining those circular payments so we thought about hi why don’t we do something comparable to like a split wise or companies in verticals such as you know fried or Logistics or building you know you have a lots of parties that need to wait for different payments like they’re all associated with one way or another so picture 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 company.
a would pay a hundred the platform Business B no they would get they would pay absolutely no or get zero and after that business C we get a hundred dollars so when we’re speaking with big companies they all loved it however it was the typical like cold start problem I’m like hey this is terrific when everyone’s in the platform however till then it’s it’s pretty tough to get people to do anything so it was all about hi how do we get more information how can we kind 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’s like we either get data through using an Analytics tool a workflow tool or we provide a financing we have a financing and we get the data or individuals provide us data in order to get financing so you understand we started doing that like exploring more and more and more and after that what we require what we saw is that we understood more about sales than anything else we were truly interested in fintech and specifically in funding and you understand like we would look at various 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 funny of offering this this SAS companies at all so they might extend terms to the customers however always get the cash up front so we’re resolving the funding payment assets companies have which is they have in advance expenses to acquire consumers and after that they make money months of the month right so to prevent that cash card that every SAS company deals with and that we faced in the past in the previous experience the objective was to provide a tool so they might state to the client hello look the rate is 100
each year and if you want to pay regular monthly terrific use capshase you know um and after that Founders enjoy that they resembled hi people this is amazing 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 faster due to the fact that I’m using flexible payment terms so it’s like the Holy Grail you know you increase ACV you reduce cell cycle usually it’s like a trade-off you understand and then the next thing they stated was like hello why do not I do this for all my consumer base instead of for each new customer that I solve so why don’t I do this for my 300 clients 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 in advance financing to be less dependent on Equity as I said the beginning yeah alright this is what we’re going to begin with and then we’re going to find out so much so we’re gon na do the rest later on which’s when the fourth co-founder joined who has a friend at HBS and then male we started dealing with it like crazy and and left what is your long-term Vision so it began with you know you arrived at this hate you if you’re sitting on ARR we know the company’s uh churn we understand the business’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-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 only method with such business intentionally right so we resisted the
desire to go and work with funding you understand with any vertical we only work with SAS so our objective is to establish numerous items for SAS so we begin with financing and it’s terrific due to the fact that companies really count on us we truly like a partner and we we help them to not just get funding however work better in a more efficient method and through that we’re finding you understand opportunities to expand you know in the transaction of a SAS item