Funding that underwrites ARR, net retention, and the actual cash cycle.
A 15-person SaaS at $2M ARR looks great on a pitch deck and terrible on a bank credit memo. The bank wants hard assets and historical free cash flow. The company has neither yet. A $500K bridge between the last raise and break-even is the difference between a controlled path and a fire sale. An MSP managing 40 clients needs $250K to fund the bench while onboarding a new enterprise account. A dev agency on net-60 invoices needs a line to bridge payroll while the client payment is in flight. Same underlying problem, three different product fits.
Revenue-based lines and ARR-backed facilities do the heavy lifting on the working capital side. SBA 7(a) handles acquisitions up to $5M when you are rolling up a competitor or buying a book of managed services clients. Equipment financing covers servers, workstations, and infrastructure gear for MSPs and integrators. Asset-based lending bundles AR, equipment, and inventory into one facility when the deal gets large enough. Your underwriter picks the stack and shows you cost side by side.
- Asset-light balance sheet that traditional bank committees underwrite poorly
- Long sales cycles on enterprise deals, where the contract is signed months before cash lands
- Payroll weight on service businesses where headcount is the product
- Hardware and infrastructure capex for MSPs, integrators, and data operations
We have done this before. A lot.
Lenders who underwrite ARR, MRR, and net dollar retention as real collateral
SBA 7(a) up to $5M for acquisitions, buy-ins, and team expansion with a ten-year amortization
Equipment and infrastructure financing for servers, workstations, and network gear
Working capital lines against enterprise AR and net-60 client invoices
Asset-based facilities that bundle receivables, equipment, and contract value into one draw
One underwriter who reads an ARR schedule and a cohort chart without needing a translator
The products that actually move the needle here.
Things technology owners ask first.
Yes. Revenue-based lenders and ARR-backed facilities are built for exactly this profile. The underwriter prices the deal against monthly recurring revenue, churn rate, and gross margin. A clean $1M ARR book with low churn is financeable even when the balance sheet shows no equipment and no inventory. Personal credit and founder history still matter, but ARR is the primary lever.
The right lenders do. Revenue-based facilities size the line as a multiple of MRR, usually 3x to 6x depending on churn and gross margin. ARR-backed term loans stretch further because they look at the full contract value under management. A bank that does not understand either of those will decline the deal and send you to us. That is usually how we meet you.
SBA 7(a) is the standard tool for MSP acquisitions. Ten-year amortization, working capital included in the package, and seller notes allowed as part of the equity injection. Deals up to $5M close through SBA with roughly 10 percent down from the buyer. On larger rollups, a combination of SBA plus asset-based lending plus earn-out structure gets the deal done. Your underwriter will map the stack before the LOI is signed if you want.
SBA 7(a) can bundle equipment purchase, working capital, and even leasehold improvements into one loan up to $5M. The amortization is long, the down payment is low, and the working capital covers payroll through the ramp of new hires. For a services firm adding a dedicated team for an enterprise contract, this is usually the cheapest long-term money available.
Funding built around technology.
Tell us about your operation and we will route you to the lenders that already understand it.
Soft credit pull. No hard inquiry unless you accept terms.