If you run a SaaS business, you have probably had the thought: “I do not want to raise another equity round right now.” Maybe the timing is wrong, the valuation is not where you want it, or you simply do not want to give up more of the company. Debt is the answer for a lot of founders in that position, but the market for SaaS debt is genuinely confusing.
This article is a practical map of the SaaS debt landscape, organized by where you are today. We explain what SaaS debt actually is, why a founder might choose it over equity, the main types of facilities you will encounter, and the leading providers in each ARR bracket. The goal is simple: by the end, you should know which three or four names to put on your shortlist.
What Is SaaS Debt?
SaaS debt is a category of lending built specifically for software companies. What sets it apart is that lenders underwrite the contract book rather than physical collateral. A traditional bank looks for buildings, inventory, and receivables it can liquidate if things go wrong. A SaaS company has none of that. What it does have is a portfolio of subscription contracts, a known churn rate, and a forward view of monthly cash that arrives in predictable increments. That is what SaaS lenders underwrite against.
SaaS lenders look at MRR, ARR, gross retention, net retention, customer acquisition cost, and burn rate, and form a view of how much of next year’s revenue will actually show up in the bank account. With strong retention and a stable customer base, that forward view is often more reliable than the financial projections of companies in industries banks find easier to underwrite.
That single insight, that recurring software revenue can be treated as a financeable asset, created the entire SaaS debt market.
Why Consider Debt Instead of Equity
Most founders default to thinking about equity. Equity is what gets written about. Equity rounds are how startups are measured against each other. Debt is rarely discussed at conferences, and almost never celebrated on social media. Yet for the right kind of SaaS company, at the right moment, debt is the better instrument by a wide margin.
The case for debt rests on four points.
1. You keep your company. A USD 5M equity round at a USD 25M post-money means giving up 20% of the business. The same USD 5M as a senior credit facility costs interest and, in some cases, a 1 to 2% warrant. If your business is worth USD 150M five years from now, the equity round cost you USD 30M. The credit facility cost you USD 2M plus interest. That gap compounds with every round.
2. The capital scales with the business. An MRR-based credit facility grows as your MRR grows. A USD 2M facility today becomes a USD 6M facility in 18 months if MRR triples. An equity round, by contrast, is a single moment of capital intake that you then have to make last until the next round.
3. There is no governance attached. Typically, debt providers don’t take a board seat. No protective provisions. No drag rights. No anti-dilution. No new voice in your operating decisions. The lender’s interest is purely that you make interest payments and repay the principal. As long as you do that, they are invisible.
4. The math favors debt when the company is working. If you can deploy capital at a higher return than the cost of debt, you are creating value with every dollar borrowed. A SaaS business that converts USD 1 of sales and marketing spend into USD 3 of new ARR is generating an IRR that vastly exceeds the 11 to 14% it pays a venture debt lender. Equity, at the same return, is much more expensive.
The catch is that debt requires the business to actually work. The interest payments have to be made. The covenants have to be respected. A company still searching for product-market fit, or burning at a rate that does not look sustainable, should not be taking on debt. Equity is the right capital for ambiguity. Debt is the right capital for execution.
How We Built This List of Top SaaS Debt Providers
SaaS debt is a fragmented market. There are over a hundred firms globally that will lend against recurring revenue in some form, ranging from solo-GP RBF platforms to USD 50B private credit funds. To make this article useful, we spent time doing desk research and filtered down our list to the providers a founder is actually likely to encounter and work with when looking to raise debt funding. Here is how.
The ARR Brackets
The five brackets in this article are not arbitrary. They reflect the natural break points where lender economics shift. A provider whose underwriting cost is USD 50K cannot profitably write a USD 200K check. A fund managing USD 5B in capital cannot afford to deploy it in USD 5M increments. These are the thresholds at which different lender business models become viable:
- Under USD 1M ARR: below the threshold where institutional lenders can underwrite efficiently. Only platform-based RBF providers, which run automated underwriting against billing data, operate here.
- USD 1M to USD 5M ARR: the threshold where specialist term lenders open up. Underwriting becomes a hybrid of platform data and human review.
- USD 5M to USD 20M ARR: the MRR-based committed credit facility becomes available. This is also where bank venture debt becomes viable for sponsored companies.
- USD 20M to USD 100M ARR: the heart of the venture debt market. Below this, the marquee non-bank venture lenders generally will not engage. Above this, private credit takes over.
- USD 100M+ ARR: private credit territory. Underwriting moves from MRR multiples to EBITDA multiples.
Which Providers Made the Cut
Within each bracket, we applied four filters to identify the leading firms:
1. Active deal flow. Every firm listed is currently making new SaaS loans. We excluded firms that have wound down, are returning capital to LPs, or are no longer accepting new applications. This sounds obvious but is the largest source of error in most “best of” lists, which often include providers who closed their doors years ago.
2. Stated focus on SaaS or recurring-revenue businesses. The providers in this article either lend exclusively to SaaS or have a dedicated SaaS practice with a meaningful track record. We excluded generalist asset-based lenders and traditional banks that occasionally do a SaaS deal but lack a specialist team.
3. Track record at scale. Every firm listed has deployed at least USD 100M in cumulative SaaS lending, or in the case of newer platforms (re:cap, Gilion), has clear institutional backing and meaningful deal volume in its target market. New entrants without a deployment history were excluded, even if their terms are attractive on paper.
Providers were placed in a bracket based on three pieces of evidence: their stated minimum requirements, the average ticket size they actually deploy, and the typical ARR profile of their portfolio companies.
Some providers appear relevant to more than one bracket. Founderpath, for example, has a term loan product that fits USD 3M+ ARR companies, even though their revenue-based product can fund USD 200K ARR founders. In those cases we placed the provider in the bracket where the bulk of their book sits. Hercules technically writes checks as small as USD 5M (technically Bracket 3 territory), but their typical SaaS borrower is in the USD 20M+ ARR range, so they appear in Bracket 4.
What This List Is Not
This is not a ranking. We do not believe any single provider is “best” in absolute terms within a bracket. The right choice depends on the founder’s specific situation: speed required, willingness to accept covenants, preference for term loan versus RBF, geographic location, and whether the company is venture-backed. The providers in each bracket are presented in approximate order of market share and visibility, but a smaller provider may be the right answer for a specific deal.
It is also not a comprehensive directory. There are competent SaaS lenders we did not include, particularly newer entrants and regional specialists. We optimized for the names a typical founder will encounter when starting a debt process, not for 100% completeness.
The SaaS Debt Toolkit: RBF, MRR Facilities, Venture Debt
Before we get to providers, it is worth understanding the four main structures you will encounter. Each is suited to a different stage and use case.
Revenue Based Financing (RBF)
The lender advances capital against your future MRR and is repaid either as a fixed percentage of monthly revenue until a predetermined cap is reached, or as a term loan with monthly amortization. Repayments fluctuate with the business: you pay more in good months, less in bad ones. There are typically no warrants, no personal guarantees, and no equity stake. RBF is fast to close, often in days, and the eligibility bar is low. The trade-off is cost. RBF is the most expensive form of SaaS debt, typically running 12 to 25% on an annualized basis, because the lender is taking on revenue risk.
Best for: bootstrapped or early-stage companies funding a specific growth investment with a clear payback window.
MRR-Based Credit Facility
A committed line of credit sized as a multiple of your MRR, typically 5x to 8x. You draw the capital as you need it across a two-year draw period, and the outstanding balance amortizes over the following three years. As your MRR grows, the size of the facility grows with it, automatically. This structure is unique to SaaS and is significantly cheaper than RBF in dollar terms, because you only pay interest on what you draw, when you draw it.
Best for: SaaS companies above USD 3M ARR with steady retention, looking for long-term growth capital that scales.
Venture Debt (Term Loan)
A traditional term loan for venture-backed companies. The structure is a two to four year term with an initial interest-only period, followed by amortization. Loan sizes typically run 25 to 35% of your last equity round. Pricing is typically floating, expressed as SOFR plus 6 to 9%, with an end-of-term final payment fee of 3 to 6%. Almost always includes warrants of 0.5 to 1.5% of fully diluted equity, giving the lender a small equity kicker. Most providers require a recent equity raise from a recognized VC.
Best for: venture-backed companies extending runway between rounds or funding a specific growth initiative.
Senior Secured Term Loan / Unitranche
The structure used by private credit funds for larger, later-stage companies. Underwriting moves from MRR multiples to EBITDA multiples and free cash flow. Pricing is typically expressed as a spread over SOFR, with covenants tied to leverage ratios and interest coverage. These loans are often used in LBO financing, recapitalizations, or M&A.
Best for: SaaS companies above USD 50M ARR, often PE-owned.
The Providers, by ARR Bracket
Below is the map of who actually lends in each segment of the SaaS market. The brackets are real: providers cluster around these revenue thresholds because their economics only work at certain check sizes. For instance, a USD 5M minimum ticket is irrelevant to a USD 600K ARR founder, and a USD 100K ticket is not worth the underwriting time of a USD 500M fund.
Founderpath
Founderpath is the most accessible non-dilutive option for bootstrapped SaaS
Location: Austin, TX. Minimum ARR: USD 120K (USD 10K MRR). Average Ticket: USD 600K. Max Funding: Up to USD 5M. Repayment Term: 12 to 48 months. Cost: 7-13% discount (RBF), 15-19% APR (term loan). Warrants: None. Personal Guarantee: No.
The largest non-dilutive lender for bootstrapped SaaS. Has deployed over USD 271M to more than 720 software founders since 2019. Founderpath takes a lien on business assets only, with no full personal guarantees and no warrants. Their revenue-based product offers fixed monthly payments with no closing costs and no prepayment penalties. The term loan product (best for USD 3M+ ARR companies) can include up to 24 months of interest-only payments before amortizing over the remainder of a 3 to 4 year term. Funding decisions in roughly 5 business days.
Best fit: Bootstrapped B2B SaaS founders between USD 200K and USD 5M ARR who want simple terms, fast funding, and the option to repay early without penalty.
Capchase
The largest RBF platform, fastest to close
Location: New York, NY. Minimum ARR: USD 250K (USD 1M for most products). Capital Advance: Up to 70% of ARR. Repayment Term: Up to 24 months. Cost: 10 to 12% flat discount fee. Time to Fund: 3 to 5 days. Covenant: 3-month runway minimum. Warrants: None.
Founded in 2020, has provided over USD 2B in financing to nearly 3,000 customers across the US and Europe, backed by USD 1B+ in committed capital. Charges a flat discount fee applied upfront to the funded amount, which means prepaying does not reduce total cost. Requires a minimum of 6 months of revenue history and 3 months of cash runway. Operates in 11 markets including the UK, Spain, Netherlands, Sweden, and Denmark.
Best fit: Growth-stage SaaS at USD 1M+ ARR that needs capital fast and is willing to pay a premium for speed and brand recognition.
Uncapped
European RBF with US reach, larger tickets
Location: London / Atlanta. Funding Range: USD 10K to USD 10M. Repayment: Fixed fee + % of future revenue. Term: 6 to 24 months. Personal Guarantee: No. Equity / Warrants: None. Time to Fund: 24 to 48 hours. Geography: UK, EU, US.
One of Europe’s largest RBF providers, with a transatlantic footprint. Active in SaaS, e-commerce, and subscription businesses. The fee structure is straightforward: a flat fee on the advanced amount, repaid through a fixed percentage of monthly revenue. Faster underwriting than most peers, with funding decisions often within a day for companies whose billing data is already integrated. Larger maximum tickets than most early-stage RBF platforms, which keeps Uncapped relevant up to mid-bracket 2 ARR levels.
Best fit: UK and European SaaS founders below USD 5M ARR who want simple, fast, no-warrant capital. Also a strong option for US founders running a cross-border business.
Pipe
Trading platform for future revenue streams.
Location: Miami, FL. Minimum ARR: USD 100K. Capital Advance: Up to ~50% of ARR. Repayment Term: 12 months typical. Cost: Trading-discount based, varies. Structure: True sale of future revenue.
Operates as a marketplace that connects SaaS companies with institutional investors who purchase future recurring revenue streams. Integrates directly with billing and ERP systems for fast verification. The trading model means pricing is set by demand from buyers rather than a fixed rate card, so terms can vary meaningfully deal-by-deal. Smaller average ticket than Capchase or Founderpath.
Best fit: SaaS founders with strong, stable contract value who want a transaction-based structure rather than a traditional loan.
Lighter Capital
The original tech-focused RBF, founded 2010
Location: Seattle, WA. Minimum ARR: USD 200K. Max Funding: Up to USD 4M. Repayment Cap: 1.35x to 2.0x of funded amount. Effective APR: 10 to 25%. Time to Fund: 2 to 4 weeks. Closing Costs: ~USD 20K (legal, UCC, admin).
One of the earliest movers in tech-focused RBF, has financed more than 600 companies. Uses a royalty repayment model: you pay back a multiple (1.35x to 2.0x) of what you borrow, with the timing depending on revenue performance. Faster-growing companies repay the cap sooner, which pushes the effective APR toward the higher end. Closing costs are higher than newer competitors.
Best fit: Early-stage SaaS founders who want a long-standing institutional lender and are comfortable with the royalty-based repayment cap structure.
re:cap
Europe’s leading flexible credit line for SaaS.
Location: Berlin, Germany. Max Funding: Up to EUR 5M. Capital Advance: Up to 50% of ARR. Structure: On-demand revolving credit line. Repayments: Aligned to revenue.
The leading European RBF platform for SaaS. Offers a flexible credit line with on-demand draws, meaning capital can be borrowed only as needed and repayments align with the business’s revenue performance. Pricing competitive with US peers. Best option for European founders who do not have a US-based revenue base.
Best fit: European SaaS companies with EUR 500K+ ARR seeking a flexible credit line rather than a one-time term loan.
Arc
Banking platform plus non-dilutive capital, in one stack.
Location: San Francisco, CA. Minimum ARR: USD 100K+. Capital Advance: Up to 70% of ARR. Structure: Revenue-based advance + treasury account. Banking Partner: Goldman Sachs Bank, Evolve Bank & Trust. Treasury Yield: Competitive money-market rate on idle balances. Time to Fund: Days.
A modern non-dilutive capital platform that combines a treasury / banking account with on-demand growth financing. Companies link their billing data, get an underwriting view in 24-48 hours, and can draw capital against future ARR. Differentiated by offering a Goldman-backed treasury account alongside the lending product, so cash held with Arc earns yield while the credit facility is sized against revenue. Strong fit for software founders who want banking and capital from one provider.
Best fit: Modern SaaS startups between USD 100K and USD 5M ARR that want banking, treasury yield, and growth capital from a single platform.
Other Active Debt Providers in The <1M USD ARR Bracket:
Stripe Capital – Tightly integrated with Stripe billing. Offers small revenue-based advances to companies already processing payments through Stripe. No application: offers appear automatically in the dashboard if eligible. Best for very early SaaS founders who run on Stripe.
Clearco – RBF with cross-vertical focus. Originally e-commerce-focused, has expanded into SaaS. Smaller average tickets, faster underwriting, and shorter terms than the SaaS specialists. Useful as a comparison quote.
Wayflyer – Cross-border RBF, mainly e-commerce. Active in revenue-based financing for digital businesses including some SaaS. Tickets up to USD 20M, but the underwriting model is most natural for product-and-marketing-driven businesses.
This is where the market gets crowded. A company at USD 2 to 3M ARR with reasonable retention has more options than it can sensibly evaluate. The RBF providers from the previous bracket continue here with larger tickets, but a parallel category opens up: specialist term lenders offering 2 to 3 year interest-only loans with no warrants. For founders with a clear use of proceeds, a term loan is often cleaner than RBF because the dollar cost is predictable.
Espresso Capital
Flexible, founder-friendly venture debt for tech
Location: Toronto, Canada. Minimum ARR: USD 1M+. Ticket Size: Up to USD 10M+. Cost: ~10 to 15% interest. Structure: Term loan or credit facility. Warrants: Modest, deal-by-deal. Geography: North America.
One of the most active non-dilutive growth-capital providers in North America. Repeatedly singled out by founders for flexibility and willingness to structure facilities around the specifics of each business. Strong fit for founders who want a long-term debt partner rather than a transactional lender. Has financed multiple repeat customers across rounds.
Best fit: Profitable or near-profitable SaaS at USD 1 to 10M ARR, often venture-backed, that wants a customized facility structure.
Bigfoot Capital
Capital-efficient growth debt for SaaS
Location: Boulder, CO. Minimum ARR: USD 1M+. Ticket Size: Up to USD 5M typical. Structure: Term loans and credit lines. Geography: US-focused.
Tailored credit facilities for SaaS and recurring-revenue businesses. Founder-led, with a focus on capital-efficient companies that have a clear path to profitability. Often used as an alternative to a Series A by founders who want to retain ownership and avoid the dilution cycle.
Best fit: Bootstrapped or lightly-funded B2B SaaS at USD 1 to 5M ARR with strong unit economics.
River SaaS Capital
Interest-only growth debt with revenue alignment
Location: Cleveland, OH. Minimum ARR: USD 1M+. Ticket Size: USD 1M to USD 5M. Structure: 2 to 3 year interest-only term loans. Repayment: Amortization after IO period.
Specializes in growth debt for SaaS companies. Loans typically include interest-only periods followed by amortization, which suits growth-stage companies that need time to convert capital into ARR before principal payments begin. Works with both venture-backed and bootstrapped firms.
Best fit: SaaS companies with USD 1M+ ARR investing in a specific growth initiative (hiring, marketing) where they need 18 to 24 months before principal payments kick in.
Bootstrap Europe
European specialist for tech and life sciences scale-ups
Location: London / Geneva. Ticket Size: EUR 2M to EUR 25M. Fund Size: EUR 130M (latest fund). Structure: Venture debt with warrants. Geography: Pan-European.
European specialist that closed its largest fund to date at EUR 130M, more than triple its previous effort. Provides venture debt and growth capital to European technology and life sciences companies, often working alongside European VC firms. Active across the UK, DACH, France, and the Nordics.
Best fit: Venture-backed European tech scale-ups at EUR 2M+ ARR using debt to complement an equity round.
Gilion (formerly ArK Kapital)
AI-driven underwriting for European SaaS
Location: Stockholm, Sweden. Minimum ARR: ~EUR 1M. Structure: Long-term growth loans. Differentiator: Data-driven underwriting.
Uses an AI-driven underwriting model that pulls financial and operating data directly from a company’s systems. Designed to provide faster, more transparent decisions than traditional lenders. Targets European SaaS and tech businesses with established traction.
Best fit: European SaaS founders who value speed, transparency, and data-driven decisions.
Coho Growth Capital
Term loans for capital-efficient North American SaaS
Location: Toronto, Canada. Minimum ARR: USD 1M+. Ticket Size: USD 1M to USD 10M. Structure: 2 to 3 year interest-only term loans. VC Backing Required?: No. Geography: North America.
Direct peer to Espresso Capital and River SaaS in the specialist term loan segment. Provides interest-only loans with deferred principal, often structured to align repayment with a planned equity round or a profitability milestone. Will work with capital-efficient bootstrapped companies as well as venture-backed SaaS. Less institutional brand recognition than Espresso, but competitive terms.
Best fit: Bootstrapped or modestly funded North American SaaS at USD 1 to 10M ARR seeking interest-only term debt with flexibility on the principal repayment timing.
Element Finance
Specialty SaaS term lender with sophisticated underwriting
Location: New York, NY. Minimum ARR: USD 1M+. Ticket Size: USD 1M to USD 15M. Structure: Term loans, often interest-only. VC Backing Required?: No. Reach: Spans Brackets 2 and 3.
Specialist lender for recurring-revenue businesses that takes a data-driven approach to underwriting SaaS companies, including non-venture-backed ones. Provides flexible term loan structures with options for interest-only periods, light covenants, and modest warrants. Often used as a complement to a venture round or as a substitute for one.
Best fit: SaaS companies at USD 1 to 15M ARR with strong metrics that want a sophisticated, founder-friendly term loan structure.
Other Active Debt Providers in The USD 1-5M ARR Bracket:
Hum Capital – Data-driven capital marketplace. NYC-based platform that combines a marketplace model with direct lending. Companies connect their financial data and receive matched offers from multiple lenders. Both RBF and term loan products available, with relatively flexible eligibility.
Metropolitan Partners – Specialty private credit. Provides senior secured debt to lower-middle-market companies including SaaS. Often used by sponsor-backed and bootstrapped businesses for acquisitions or recapitalizations. Higher minimum ticket than most providers in this bracket (USD 5M+).
SG Credit Partners – Flexible junior debt. Provides junior debt and structured capital solutions to lower-middle-market businesses. Niche player in the SaaS segment but useful for situations where senior lenders cannot or will not engage.
Tapline – European RBF specialist. European platform offering revenue-based financing to SaaS and subscription companies. Smaller average ticket than re:cap but a similar value proposition for early-stage European founders.
This is where the most powerful product in the SaaS debt market becomes available: the MRR-based committed credit facility. The lender commits a facility sized to a multiple of MRR, the borrower draws as needed during a two-year period, and the outstanding balance amortizes over the following three years. As MRR grows, available capital grows with it.
Non-bank venture debt also opens up at this stage. Lenders who can fund both VC-backed and bootstrapped SaaS companies, with lighter covenants than banks and more flexible structures than the marquee BDCs that dominate the next bracket up. These are often the right answer for founders who want growth capital without a VC sponsor or without the operating restrictions that come with bank debt.
SaaS Capital
The category-defining MRR credit facility
Location: Cincinnati, OH. Minimum MRR: USD 250K (USD 3M ARR). Facility Size: USD 2M to USD 15M. Advance Rate: 5x to 8x MRR. Structure: 2-year draw, 3-year amortization. Warrants: Nominal penny warrant. Geography: US, Canada, UK. Time to Term Sheet: 1 to 2 weeks.
Pioneered MRR-based credit facilities for SaaS in 2007 and has funded over 100 companies since, with borrowers typically ranging from USD 2M to USD 40M ARR. Companies do not need to be profitable or venture-backed to qualify, but they do need a solid history of retention. The structure is committed: you can draw and use capital as needed for two years, then either renew or begin amortizing over an additional three years. No balance sheet covenants. Time from first call to funding typically 6 to 8 weeks.
Best fit: Bootstrapped or modestly funded B2B SaaS at USD 3 to 20M ARR with strong retention, looking to fund multiple years of growth from a single facility.
Flow Capital
Founder-friendly venture debt with interest-only structure
Location: Toronto, Canada (TSXV: FW). Minimum ARR: USD 3M. Advance Rate: Up to 1x ARR. Structure: 2 to 3 year interest-only, bullet repayment. Cost: Low to mid-teens interest, plus warrants or success fee. Warrants / Success Fee: 1 to 3% of fully diluted value. Personal Guarantee: No. VC Backing Required?: No (funds both VC-backed and bootstrapped). Time to Close: As fast as 6 weeks. Geography: North America.
A publicly traded specialty venture debt firm that explicitly markets itself as “more flexible than bank debt, less expensive than venture capital.” The signature structure is unusual: a 2 to 3 year interest-only loan with bullet repayment at maturity, meaning the full principal stays on the balance sheet throughout the term with no amortization. This preserves cash flow for growth investment during the loan period. Companies do not need to be profitable, but they do need at least USD 3M in revenue, proven growth, and capital-efficient unit economics. Minimal covenants, no board seats, no personal guarantees. Flow has delivered a 30.5% five-year IRR on its book.
Best fit: SaaS companies at USD 3 to 20M ARR (both venture-backed and bootstrapped) that want to preserve cash flow during a growth push, particularly those bridging to profitability or to a higher-valuation equity round.
Claret Capital Partners
Europe’s most active dedicated venture debt firm
Location: London / Dublin. Ticket Size: EUR 5M to EUR 30M. Structure: Growth debt with warrants. Stage: Series A/B+ backed. Geography: Pan-European.
One of Europe’s most active dedicated venture debt firms. Focuses on growth-stage technology and life sciences companies. Has deployed across hundreds of European scale-ups, with ticket sizes that fit comfortably in this bracket.
Best fit: European venture-backed tech companies at EUR 5M+ ARR using debt to extend runway between equity rounds.
Columbia Lake Partners
European tech-only specialist
Location: London. Ticket Size: EUR 2M to EUR 15M. Structure: Term debt with modest warrants. Geography: Europe.
Specialist venture debt fund focused exclusively on European technology companies. Known for a hands-on, partnership-oriented approach to scaling SaaS businesses. Smaller checks than Kreos, but more bespoke engagement.
Best fit: European tech companies at EUR 2 to 15M ARR who want a partnership-style lender rather than a balance-sheet lender.
Live Oak Bank
The #1 SBA lender, with a dedicated SaaS team
Location: Wilmington, NC. Specialty: SBA 7(a) loans, including for SaaS acquisitions. SBA 7(a) Ticket: Up to USD 5M (USD 7-10M+ with combo financing). Average Loan Rate: ~9.2% (variable, 2025 data). Term: Up to 14 years average. Down Payment: 10 to 20% typical. 2025 SBA Volume: USD 2.68B across 2,148 businesses. PLP Status: SBA Preferred Lender (faster process).
The #1 SBA 7(a) lender in the United States by volume, with a dedicated software banking practice. Live Oak’s distinctive value in the SaaS market is in financing acquisitions: SBA 7(a) loans can fund up to USD 5M of an acquisition (more with combination financing), with rates and terms that are difficult to match elsewhere. The loan must be backed by demonstrable cash flow, which usually means an established, profitable target. Live Oak’s Preferred Lender status shortens approval by 3 to 4 weeks compared with non-PLP banks. Beyond SBA, also offers conventional banking and treasury services to software companies.
Best fit: Profitable or near-profitable SaaS businesses at USD 5M+ ARR pursuing an acquisition, or US founders looking to combine banking with growth capital from a single relationship.
Partners for Growth (PFG)
Long-standing growth debt provider for venture-backed companies
Location: San Francisco, CA. Ticket Size: USD 5M to USD 50M+. Founded: 2004. Structure: Term loans, often subordinated. Co-Lending: Frequently partners with venture banks. Geography: US, with international experience.
A specialist growth lender that has been active since 2004, often co-lending alongside venture banks to provide additional capital beyond what a bank can underwrite alone. Structures vary widely deal-by-deal, with both senior and subordinated debt available. Particularly useful in situations where a company has a bank facility but wants additional non-dilutive capital without taking on a second senior lender. PFG has lent to hundreds of growth-stage companies, including many SaaS businesses.
Best fit: Venture-backed SaaS at USD 10M+ ARR that already has a bank facility but needs additional non-dilutive capital, or that wants subordinated debt to layer beneath senior bank debt.
Other Active Debt Providers in The USD 5-20M ARR Bracket:
Comerica Bank – Specialty SaaS-focused bank. One of the few traditional US banks that has built a dedicated SaaS banking practice. Provides both banking and lending services, with rates typically in the 12 to 15% range (lower with personal guarantee or collateral). Strong fit for profitable or close-to-profitable companies.
Mercury – Banking platform + small venture debt arm. Primarily a treasury and banking platform built for startups, with a smaller direct lending arm. Works with venture-backed companies. Useful as a banking partner alongside one of the dedicated lenders above.
Susser Bank – Specialty SaaS bank, Texas-based. Smaller specialty bank with a dedicated SaaS lending team. Often used as an alternative bank relationship for companies that want a smaller, more responsive partner than the major venture banks.
A note on the venture banks at this stage: If you are venture-backed and at the higher end of this bracket (USD 10M+ ARR), it is also worth running a parallel conversation with the major US and UK innovation banks: First Citizens Bank (which houses the former Silicon Valley Bank team), HSBC Innovation Banking (the former SVB UK), Stifel Bank, and Bridge Bank (Western Alliance). Bank pricing will be meaningfully lower than non-bank lenders, often Prime plus 1 to 3%, but the covenants are tighter (minimum cash balances, MRR maintenance, runway tests) and they require an existing equity sponsor. Most non-sponsored founders in this bracket end up choosing the non-bank lenders above for flexibility, but if you have a strong VC behind you, the banks are usually worth a comparison call. We profile them in detail in the next bracket.
This is where the marquee venture debt funds spend most of their time. The companies are almost universally venture-backed, have raised a meaningful Series B or C, and are using debt to extend runway, fund a specific growth initiative, or bridge to the next equity round. Term loans typically come with warrants of 0.5 to 1.5% of fully diluted equity, plus an end-of-term final payment fee of 3 to 6%.
Hercules Capital
The largest non-bank venture lender
Location: San Mateo, CA (NYSE: HTGC). Ticket Size: USD 5M to USD 300M. Cumulative Deployed: USD 19B+ across 640+ companies. Structure: Structured debt with warrants. Industry Teams: Tech, SaaS Finance, Life Sciences, Sustainability. Loan Duration: ~24 months average.
The largest non-bank venture lender in the market. Has committed over USD 19B to more than 640 companies since inception in 2003. Investment teams split by sector for specialized underwriting. Offers structured debt with warrants, senior debt, and equipment leasing. Conservative underwriting with ARR attachment points typically less than 1x. The default consideration for any meaningful US SaaS debt facility in this bracket.
Best fit: Venture-backed US SaaS at USD 20M+ ARR raising USD 10M to USD 100M of debt alongside equity to extend runway or fund acquisitions.
TriplePoint Capital
“Lifespan” lender across the venture cycle
Location: Menlo Park, CA. Ticket Size: USD 5M to USD 100M+. Cumulative Deployed: USD 5B+ to 500+ companies. Structure: Debt + leasing + direct equity. Stage Coverage: Seed through pre-IPO.
Provides debt financing, leasing, and direct equity investments across the full venture lifecycle. Has deployed more than USD 5B to over 500 venture-backed companies. The “Lifespan Approach” supports companies from seed through pre-IPO with the same lender, which can be valuable for companies that want a long-term partner.
Best fit: Venture-backed SaaS planning multiple debt facilities over the company’s lifetime and wanting relationship continuity.
Runway Growth Finance
Late-stage growth debt for established companies
Location: Menlo Park, CA (NASDAQ: RWAY). Ticket Size: USD 10M to USD 75M+. Stage Focus: Late-stage, established commercial traction. Use Case: Often pre-liquidity bridge.
Targets companies that have crossed the early venture risk threshold and have established commercial traction. Often used as a bridge to liquidity events: an IPO, a sale, or a final growth round at a step-up valuation.
Best fit: Late-stage venture-backed SaaS bridging to an exit or IPO.
Horizon Technology Finance
Flexible specialty lender with broad stage coverage
Location: Farmington, CT (NASDAQ: HRZN). Ticket Size: USD 5M to USD 50M. Sectors: Tech, life sciences, sustainability. Stage Flexibility: Early growth through pre-IPO.
Specialty finance firm providing secured loans to venture-backed companies. More flexible on company stage than some peers, with active participation across early growth through pre-IPO.
Best fit: Venture-backed SaaS at USD 15 to 50M ARR who want a flexible, less-marquee alternative to Hercules.
Kreos Capital (BlackRock)
Europe’s most established venture debt firm
Location: London / Tel Aviv. Ticket Size: EUR 5M to EUR 30M+. Fund Size: EUR 1.2B+ (latest fund). Companies Backed: 650+. Notable Borrowers: Klarna, GetYourGuide, Babylon. Ownership: Acquired by BlackRock in 2023.
Europe’s most established venture debt firm, now part of BlackRock. Has backed over 650 high-growth companies. Typical engagement is after a Series A or B equity round. The BlackRock acquisition has shifted Kreos toward larger ticket sizes, leaving a gap in the EUR 1 to 10M tech-loan segment that smaller European players are filling.
Best fit: Venture-backed European SaaS at EUR 10M+ ARR raising debt of EUR 5M or more.
Western Technology Investment (WTI)
The original venture debt firm, since 1980
Location: Portola Valley, CA. Founded: 1980. Ticket Size: USD 5M to USD 50M. Structure: Term loan with warrants. VC Relationships: Deep, often a “preferred lender” for top VCs. Notable Borrowers: Google, Facebook, Square (historical).
One of the oldest venture debt firms in the world, founded in 1980. Long-standing relationships with the top venture firms mean WTI is often the “first call” lender for portfolio companies of certain Sand Hill Road VCs. Operates with deep underwriting expertise across SaaS, fintech, and life sciences. Terms tend to be more conservative than the largest non-bank BDCs, but the depth of relationship and pattern recognition is valuable for first-time borrowers.
Best fit: Venture-backed SaaS at USD 20M+ ARR whose lead VC has a relationship with WTI, or who want a lender with the longest track record in the industry.
Other Active Debt Providers in The USD 20-100M ARR Bracket:
North Atlantic Capital – Mid-market growth debt. Portland, ME-based mezzanine and growth debt provider, active in software and tech-enabled services. Often does sub-debt that layers under senior bank facilities. Ticket sizes USD 5 to 25M.
Montage Partners – Junior debt / structured equity. Phoenix-based investor providing junior debt and structured equity to lower-middle-market businesses including SaaS. Hybrid debt-equity structures useful for situations where pure debt or pure equity is not optimal.
Boathouse Capital – Sub-debt and structured capital. Mezzanine and structured capital provider that has been active in software lending. Typically works in sponsor-backed situations. Ticket sizes USD 5 to 30M.
Avenue Capital – Hedge-fund-affiliated venture debt. Manages a venture debt strategy through Avenue Venture Opportunities. Larger ticket sizes than most BDCs, with willingness to take on more complex or larger situations.
At this scale, the conversation changes completely. The lenders are private credit funds and direct lenders, the same firms that finance leveraged buyouts. Underwriting moves from MRR multiples to EBITDA multiples, leverage ratios, and free cash flow. The borrower is typically a PE-owned business, and the terms reflect the standards of the leveraged loan market.
Vista Credit Partners
Software-only credit specialist within Vista Equity
Location: Austin, TX. AUM: USD 6B+. Cumulative Deployed: USD 9.4B+ since 2013. Focus: Enterprise software exclusively. Recent Activity: USD 250M tactical fund for AI-defensible software.
The credit arm of Vista Equity Partners. Has deployed over USD 9.4B since 2013, focused exclusively on enterprise software, data, and technology-enabled businesses. The most software-specialist player in the bracket. Recently launched a USD 250M tactical fund targeting AI-defensible software companies.
Best fit: Larger SaaS businesses at USD 100M+ ARR seeking a software-specialist credit partner.
Blue Owl Capital
Mega-platform direct lender
Location: New York, NY (NYSE: OWL). Scale: One of the largest direct lenders globally. Typical Use Case: Unitranche, LBO financing. Software Activity: Heavy.
Active across the software sector, often in unitranche structures supporting LBOs and large refinancings. Led the Pluralsight restructuring alongside Ares in 2024. Among the largest providers of senior secured debt to PE-backed software companies.
Best fit: PE-backed software companies seeking large unitranche facilities or LBO financing.
Ares Management
Diversified direct lender with substantial software book
Location: Los Angeles, CA (NYSE: ARES). Activity: Sponsor-backed and large refinancings. Scale: Multi-billion-dollar software credit book.
Long-standing direct lender with a substantial software credit book. Active in both sponsor-backed financing and large software refinancings.
Best fit: PE-backed software companies running competitive credit processes alongside Blue Owl and Apollo.
What It Costs
Most discussions of SaaS debt focus on the headline interest rate. That is the least interesting number. What matters is the all-in cost of capital across the full life of the facility, including fees, warrants, and the dollar cost of having to draw capital you do not yet need.
