6 Key SaaS Funding Terms in Venture Debt Agreements

by Cheqly team | | Venture Debt Agreements

It is thrilling to scale a SaaS startup, but raising funds for the next big step without forfeiting ownership is not easy. This is where venture debt comes in—a practical loan option made to support the growth of startups while at the same time maintaining equity. Though venture debt provides several benefits, the possible inclusion … Continued

Venture Debt for SaaS: How It Works at Every Phase

by Cheqly team | | Venture Debt

By analyzing the way venture debt plays out at different levels of the SaaS business, it becomes possible to understand non-dilutive funding solutions. Whether you are a startup founder or co-founder looking for ways to invest in funding for the SaaS business’s venture debt, it can be powerful enough to grow without diluting equity. Venture … Continued

How to Navigate the Venture Debt Term Sheet

by Cheqly team | | Venture Debt Term Sheet

How do you decide on the terms of the loan now that you’ve determined that borrowing money is preferable to conducting an equity round? Usually, venture financing lenders will give you a term sheet so you can assess the potential transaction. When you are working with the lawyer on the loan, you should ask for … Continued

Warrants, Covenants & Guarantees: Understanding Loan Terms

by Cheqly team | | Loan Terms , Venture Debt

Let’s discuss what these loan terms mean for your business and why you included them in the planning. Why Loan Terms Are Essential? One of the most flexible, founder-empowering forms of SaaS funding available on the market is venture debt financing. Despite the availability of several other alternatives, the debt financing model remains the best … Continued

Debt Covenants: A Comprehensive Guide

by Cheqly team | | Debt Covenants

Debt covenants, which are written contractual obligations, are used in the case of loans or credit lines to enable creditors to impose restrictions on borrowers’ business activities as a condition for receiving credit. Borrowers and lenders can set the covenants together within the loan contract. Debt covenants may be in these agreements whereby an organization … Continued

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