Capchase: Disrupting startup financing norms

Capchase: Disrupting Startup Financing Norms

Introduction

For startups, financing is a crucial aspect that can make or break the business. Traditional financing methods can be limiting, especially when it comes to unlocking the value of non-dilutive funding sources like tax credits. Capchase aims to disrupt this financing norm by offering startups an innovative way to access their future revenue today.

What is Capchase?

Capchase is a fintech startup that provides revenue-based financing to SaaS companies. The company bridges the gap between a software company’s present and future revenue by offering to finance up to 12 months of customer contracts.

How Does Capchase Work?

Capchase allows startups to leverage their future revenues by offering an upfront payment based on future revenue and customer contracts. This allows startups to free up cash flow that would otherwise be tied up in long-term contracts.

The repayment of the financing is based on the revenue-share model, which means that the startup pays back a percentage of the monthly revenue to Capchase until the loan plus interest is fully repaid.

Capchase compared to traditional financing

The traditional financing route for startups includes equity financing or debt financing. Equity financing typically involves giving up a portion of the company’s ownership to investors in exchange for funding. Debt financing involves borrowing money that is to be repaid over a specific time frame with interest.

Capchase offers a third option that is beneficial to startups that want to maintain control and ownership of their companies while still receiving funding. It also offers a flexible repayment option that aligns with the company’s cash flow, compared to debt financing.

Benefits of using Capchase

By partnering with Capchase, startups can benefit from:

  • No equity dilution: Capchase offers financing without requiring startups to give up ownership in their company. This allows startups to maintain full control of their business.

  • No personal guarantee: Unlike traditional loans, Capchase financing doesn’t require startups to personally guarantee the loan. This provides startups with more flexibility for business decisions.

  • Fast access to capital: Capchase provides startups with access to funds within a few days, which can allow them to quickly invest in growth opportunities.

  • Flexibility in repayments: Capchase offers a revenue-share model, which allows startups to keep more cash in their business when sales are low. As revenue grows, the startup’s repayment amount will increase proportionately.

Conclusion

Capchase is changing the way startups access financing by offering an innovative solution that allows them to leverage their future revenue. With no ownership dilution and a flexible repayment option, startups can maintain control of their business while still accessing much-needed capital. As funding options continue to evolve, Capchase is paving the way for startups to achieve their growth goals without sacrificing equity or control.