It can be challenging to pick the funding model … Stripe Revenue Based Financing .
Get up to a year of upfront capital immediately, offering you the flexible financing you require to grow your company and scale. We offer the essential financing you require at that minute. Within 24 hours, we assess the financing required and deposit it quickly to your account.
Capchase works with these users and organization types: Mid Size Organization, Small Business, Enterprise, Freelance, Nonprofit, and Government.
what’s much better owning 100 of a 10 million
business or 15 of a 100 million dollar
business the response how about the best of
both
you’re right with standard financing
that’s not really an alternative previously
keep your 100 with cap chase we utilize information
to make financing faster fairer and more
flexible based on your future
foreseeable earnings and after that we wrap it
all up with a single transparent charge
so let’s get this party began at
There is always a point in time when a start-up’s creators, senior management group, and top finance executives assess methods for how to scale the company to the next level and catalog what’s required to do that effectively. Protecting funding at an early stage can speed up growth and result in quantifiable and achievable success. Eventually, financing supervisors and the strategic preparation group need to select the right funding source to assist the business reach its goals.
that management sets for the organization. Weighing the threats and competitive risks in a well balanced and smart way is important as it can decide the future of your company The ramifications of selling equity, handling inconsistent cash flow, interest rate movements, and the need to make prompt payments to loan providers are amongst the aspects to think about, just to name a few.
That stated, with the rise of brand-new and more advanced financing options that put the business interests of start-ups and midsize companies initially, there’s typically a method to determine an option that’s a good fit. It is very important to investigate the different financing alternatives that are offered to a company’s founders, management accounting professionals, and financing officers and what considerations they need to make for 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 service provider of non-dilutive growth capital for recurring Earnings business generally helping companies grow without giving up that precious Equity you took so long to develop Miguel welcome to traction thank you so much for joining us Hey Lloyd thank you a lot for having me it’s great to be here yeah I’m very excited to share more remarkable I’m delighted to get 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 first time founder it resembles you hit a crowning achievement out of the park out of the gates I enjoy it man that’s incredible well as quickly as they won you understand like it’s never ever the Crowning achievement never like never counts till the game is over ideal essentially so so so yeah um we are four co-founders you understand and it’s funny because we have actually all fulfilled through first as buddies you know and after that as co-founder so uh there’s 3 people that collaborate at the very same SAS company in in Spain so we all joined when it was extremely early I signed up with as the first individual in sales and there are 2 individuals joined us that as item managers essentially and we see the business from zero to a couple of million err over 3 years and after that we left um at the same time approximately 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 service school I I entered into Harvard and you understand I was extremely thrilled about it my whole objective was to go there to find out more about how to become a creator and then hopefully release something upon graduation and the one that I landed there I was looking into currently an idea with one of these co-founders and it was genuine concept it had absolutely nothing to do or really little to do with what we’re doing now however you understand that was the start of the novice and the journey Journey or the Insight that we had was that hey there are in certain verticals there are a lot of consecutive payments you know and circular payments between business and right now you just need to wait on that series to establish or you understand like there’s no one simplifying those circular payments so we thought of hey why don’t we do something similar to like a split wise or business in verticals such as you understand fried or Logistics or building you understand you have a ton of parties that have to await various payments like they’re all involved in one way or another so envision you have a platform and after that you have company a post Business B 100 and Business B Home Business c a hundred dollars in reality with this platform what would occur is a company.
a would pay a hundred the platform Company B no they would get they would pay zero or receive no and then company C we get a hundred dollars so when we’re speaking to big companies they all enjoyed it but it was the common like cold start issue I’m like hey this is excellent when everybody’s in the platform however until then it’s it’s quite hard to get individuals to do anything so it was all about hey how do we get more information how can we type of begin this platform um without using the platform to start with so it was everything about getting more data and to get more data we got to 2 conclusions it’s like we either get data through providing an Analytics tool a workflow tool or we offer a financing we have a funding and we get the data or individuals offer us data in order to get funding so you understand we started doing that like exploring more and more and more and after that what we need what we saw is that we knew more about sales than anything else we were truly interested in fintech and specifically in financing and you know like we would take a look at different modes different verticals and so on for two weeks at a time if we discovered enough things we would choose two more weeks if we didn’t would suffice and after that in January 2020 we had the the idea you understand which is funny of offering this this SAS business at all so they could extend terms to the clients however always get the money in advance so we’re solving the financing payment properties companies have which is they have in advance costs to get consumers and after that they make money months of the month right so to prevent that cash card that every SAS company deals with which we faced in the past in the previous experience the goal was to provide a tool so they could state to the customer hello look the rate is 100
per year and if you want to pay monthly fantastic usage capshase you understand um and then Founders enjoy that they resembled hello people this is fantastic this is the Holy Grail of SAS because I need to do discount rates so my ACV increases and I can close sales quicker because I’m providing flexible payment terms so it resembles the Holy Grail you know you increase ACV you decrease cell cycle typically it’s like a trade-off you know and after that the next thing they stated was like hello why don’t I do this for all my client base instead of for every brand-new consumer that I get right so why do not I do this for my 300 clients instead of doing it for the net for the 10 brand-new consumers I get months of a month so then we saw what they wanted was to transform their ARR or the client base into upfront financing to be less depending on Equity as I said the starting yeah alright 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 later on and that’s when the fourth co-founder joined who has a buddy at HBS and after that man we started dealing with it like crazy and and dropped out what is your long-term Vision so it started with you know you arrived on this hate you if you’re resting on ARR we know the business’s uh churn we know the business’s retention gross margins And so on so I can take their ARR and provide them up front x times times x ARR or times x mrr however what is a long-lasting 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 way with such companies deliberately right so we resisted the
desire to go and work with financing you understand with any vertical we only deal with SAS so our objective is to establish multiple products for SAS so we start with financing and it’s great since companies truly count on us we actually like a partner and we we help them to not just get financing however work much better in a more effective method and through that we’re discovering you know chances to broaden you know in the transaction of a SAS product