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Revenue also opens the door for loans which can be a great if dangerous source of funding as you don't give up equity and can still scale slightly ahead of your growth curve.



Great point albeit unexplored by us. Are you talking about loans from traditional banks?

I've perhaps unfairly assumed traditional banks won't fund SaaS companies because of unfamiliarity with non-asset intensive businesses. Or that they'd require me to put up my house, wife and child as a personal guarantee?


Yep, traditional banks. As long as the revenue is stable enough you don't need a personal guarantee from a traditional bank. They can be just as intrusive as other investors and even require thinks like the company take out life insurance on key employees. But it is a real option you may want to look into.

Another option many small companies don't consider is net 30 - 60 day payments from key suppliers. You generally get a grace period after an initial bill and can often work out a deal where you either have say 45 days to pay while still being considered current OR get a discount if you pay within a week of getting a bill.

One company I worked with had the equivalent of a 60k loan from CDW due to the rate they where buying equipment plus the grace period.




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