Live market data
Pulled from official U.S. government APIs. Click a card to view the source.
TL;DR
Bootstrapped SaaS and tech companies fund best with revenue-based financing or lines of credit, since banks typically reject pre-profit tech businesses. MRR-positive SaaS with $35K+ monthly deposits qualifies for working capital in 24 hours; profitable agencies qualify for term loans at 8.99%+ APR.
Why banks decline most tech companies
Traditional banks underwrite on tax-return profit and collateral. SaaS companies often run unprofitable on paper while being highly cash-generative — bank DSCR calculations miss this entirely.
Revenue-based financing
RBF and MCA underwrite on monthly deposits, not P&L profit. SaaS with $35K+/mo MRR qualifies for $5K–$2M in 24 hours.
Lines of credit for cash-flow timing
Annual contracts paid quarterly mean lumpy cash flow. A revolving line smooths payroll between billings.
Term loans for profitable agencies
Profitable digital agencies with 12+ months operating qualify for 1–5 year term loans at 8.99%+ APR for hiring, acquisitions, or office expansion.
Common mistakes SaaS founders make
- •Stripe-only banking — sweep to a real business account first
- •Taking venture debt at higher cost than RBF when not strictly needed
- •Using MCA for multi-year customer acquisition (term loan is cheaper)
- •Ignoring annual contract value in underwriting (mention it!)
Run the numbers
Business Term Loan Calculator
Standard amortization: fixed APR, fixed weekly payment. Same formula banks and SBA lenders use.
Methodology
Standard amortization formula: P × r / (1 − (1 + r)−n), where r is the monthly rate (APR / 12) and n is the term in months. APR is the annual percentage rate as defined in the federal Truth in Lending Act (12 CFR § 1026.22). Actual lender quotes may include origination fees that increase APR.
Compare Two Offers (APR-equivalent)
Paste any two offers — MCA, term loan, line of credit — and normalize them to the same yardstick.
Lowest APR-equivalent wins on cost. Cents-on-the-dollar (CoD) shows total cost per dollar borrowed regardless of term length.
Related questions
Related guides
Best Business Loans for E-commerce Businesses in 1970
Inventory financing, working capital, and revenue-based loans built for Shopify, Amazon, and DTC sellers — and why your Shopify Capital offer might not be the best deal.
Best Business Loans for Professional Services Firms in 1970
Lines of credit, term loans, and working capital for law firms, accounting practices, agencies, and consulting firms — including how billable-hour cycles affect underwriting.
Business Loan Rates Explained (1970)
APR, factor rate, and total cost of capital — what the numbers actually mean and how to compare offers across products.
Sources & references
- Current Employment Statistics (CES)— U.S. Bureau of Labor Statistics
- County Business Patterns— U.S. Census Bureau
- SBA 7(a) and 504 Loan Program data— U.S. Small Business Administration
- Bank Prime Loan Rate (DPRIME)— FRED · Federal Reserve Bank of St. Louis
- Small Business Credit Survey— Federal Reserve Banks