This is how easily SaaS companies can finance their growth journey – without diluting ownership
Published: 10 May 2022, 09: 00Updated: 10 May 2022, 15:21Jannis Koehn, CFO, Shraddha Chouhan, CMO, and Cedric Notz, CEO, at Float. Young tech companies may find it difficult to finance their growth as banks require guarantees and venture capitalists want a share of the company. Float offers CaaS – Capital- as-a-Service – for easy and fast financing for subscription-based companies that need capital to grow. – We can give SaaS companies quick and easy access to non-dilutive growth capital with total flexibility, where the founders can withdraw the capital they need , when they need it, says Cedric Notz, founder and CEO of Float. Many tech companies often find it difficult in the beginning, not least to gain access to capital. The income is uncertain, there are rarely any assets in the company to use as security for loans and the founders often struggle around the clock to develop their business concept and can not spend time chasing capital. Venture capital is fantastic for financing new ideas and activities. But existing shareholders must issue new shares – and thus give up some of the control and the financial upside. If a company has found a product market that fits and wants to accelerate, loans are also fantastic. All early shareholders – founders, angel investors, employees and venture capitalists – benefit. Float offers Capital-as-a-Service to companies in the subscription-based economy, ie SaaS companies. The credit limit is linked to ARR, Annual Recurring Revenue, a concept in the subscription economy that shows how large the annual recurring income is during the life of the subscriptions.Float provides unsecured creditsFloat takes an interest rate on the loan, but requires no security. To minimize credit risk, a thorough risk analysis is instead performed based on large amounts of data. – Our process is completely digital and automated. The customer easily registers on our platform. Through Bank-ID, we then get access to information about the company’s bank accounts, accounting information and the software for subscription management. Our algorithms analyze this data and obtain the KPIs we need to make a risk assessment. Depending on the risk, we can offer a credit of between 30 and 70 percent of ARR, Cedric Notz explains. As the company’s ARR increases, so does the credit limit. – It is a very flexible solution, where the company can use as much as they want of the credits we offer to what they themselves want, when they so wish, he says.Float Management wants to maximize the customer experienceThe process is very fast. Within a few days, the SaaS company can gain access to the credit. – The customer experience should be as fast, simple and efficient as possible for those who seek capital from us, says Cedric Notz. Float’s business concept is based on the founders’ own experiences of creating and operating growing SaaS -business. Jannis Koehn is CFO and co-founder of Float. – As a former CEO and CFO of a B2B subscription company, I have personally experienced how difficult it is for new companies that want to grow to get credit from the banks. It took endless time. The market does not work, and we want to do something about it, he says, and concludes: – Financing for entrepreneurs has looked the same for decades. Let’s change that. Float will revolutionize financing for subscription-based companies.Read more at www.gofloat.io/sv/ The article is produced by Brand Studio in collaboration with Float Lending and not an article by Dagens industri
