# 3 US-Based Recurring Revenue Financing Partners to Look at in 2024 The SaaS industry is worth approximately [$195 billion](https://www.gartner.com/en/newsroom/press-releases/2022-10-31-gartner-forecasts-worldwide-public-cloud-end-user-spending-to-reach-nearly-600-billion-in-2023), and the US SaaS industry is set to grow by [over 2x by 2025](https://explodingtopics.com/blog/saas-statistics). Conclusion? The SaaS market is on fire! But with that comes several challenges — lack of funding, poor product adoption, etc. — the reason why [90% of SaaS start-ups fail](https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/grow-fast-or-die-slow) to achieve the desired level of success. In this context, Recurring Revenue Financing (RRF) emerges as an attractive option for fueling business growth without sacrificing equity or ownership. RRF is a funding method where capital is provided to a business based on its predictable, ongoing revenue streams. It's commonly used by companies with subscription-based models, like SaaS, Robotics, VARs, etc. In this post, we'll offer a comprehensive overview of three major RRF partners to watch for in 2024: **Ratio**, **SaaS Capital**, and **Lighter Capital**. ## Top 3 Recurring Revenue Financing Companies to Partner with ### 1. Ratio **Based in:** California **Sector:** [SaaS](/content/boost/index.html), [hardware](/content/boost-hardware/index.html), and [VARs](/content/boost-vars-distributors/index.html) **Amount of funding:** $11 million in venture funding and a $400 million credit facility for customer financing. **Who is Eligible for Funding?:** - SaaS, hardware businesses, robotics businesses, and VARs having predictable revenue from contracts. - The contract length should be at least 12 months. Ratio converts your recurring revenue contracts into instant cash — eliminating the need for debt, interest expenses, or dilution. Ratio understands the different financial demands of businesses and solves them through its two product offerings: **Boost** and **Trade**. #### [Ratio Boost](/content/glossary-item/ratio-boost/index.html) Ratio Boost increases your deal-closing chances by facilitating [Buy Now, Pay Later](/content/blog/how-saas-businesses-benefit-from-buy-now-pay-later/index.html) ( [BNPL](/content/glossary-item/buy-now-pay-later/index.html)) flexibility for your customers. **Benefits of Ratio Boost** 1. **Full Ownership:** Maintain complete control over your company while avoiding [equity dilution](/content/glossary-item/equity-dilution/index.html). 2. **Affordable and Convenient:** A more accessible choice than traditional debt, with no fixed interest rate. 3. **Dynamic Risk Assessment:** Boost provides capital based on the risk evaluation done through its dynamic [underwriting](/content/glossary-item/underwriting/index.html). 4. **Contract Flexibility:** Allow for a more personalized financial plan by selecting contracts that best meet your [cash flow](/content/glossary-item/cash-flow/index.html) requirements. 5. **Quick Cash Access:** Allow for a quick response to financial requirements by receiving funds almost instantly. #### Pricing If the contract value is $100,000, there shall be a fee, called a discount rate, ranging from 8% to 15%. #### [Ratio Trade](/content/glossary-item/ratio-trade/index.html) [Ratio Trade](/content/trade/index.html) is an innovative form of growth financing that allows businesses to quickly convert annual and multi-year contracts into instant cash. **Benefits of Ratio Trade** 1. **Equity Dilution Prevention:** Maintain control over their shares. 2. **Automated Reporting:** Saves time and optimizes business processes. 3. **Debt-Free Cash Access:** Provides immediate cash access without incurring debt. 4. **Extended **Runway** with Deferred Payments:** Aids in better cash flow management and long-term planning. ##### Pricing Ratio charges a discount rate between 1% and 15+% on the value of a contract. ### 2. SaaS Capital **Based in:** United States **Sector:** B2B SaaS **Amount of funding:** $2 million to $20 million **Who is Eligible for Funding?:** - Minimum annual revenue of $3 million ($250k in [MRR](/content/glossary-item/monthly-recurring-revenue/index.html)). SaaS Capital eliminates equity dilution and loss of control for SaaS enterprises by emphasizing flexibility and a reduced total cost of capital. #### Benefits 1. Generous funding with flexibility. 2. Lower total cost of capital. 3. No equity dilution or loss of control in SaaS enterprises. 4. Quick funding. #### Pricing Credit facility pricing is derived from a combination of three factors: 1. An interest rate of 12% to 14% on borrowed funds. 2. A 1% to 1.5% commitment fee. 3. A nominal penny warrant. ### 3. Lighter Capital **Based in:** United States **Sector:** SaaS **Amount of funding:** Up to $4 million **Who is Eligible for Funding?:** - Companies with headquarters or subsidiaries in the United States, Canada, or Australia. - [Monthly Recurring Revenue](/content/glossary-item/monthly-recurring-revenue/index.html) (MRR) of more than $15,000. Lighter Capital specializes in non-dilutive financing options suited for technology companies, providing a path for growth without the requirement for personal guarantees. #### Benefits 1. No equity is diluted. 2. Adapt funding to your needs. 3. Extend [payment terms](/content/glossary-item/payment-terms/index.html) to three years, with the possibility of additional rounds/tranches. 4. Streamlined application process: Avoid pitch decks, presentations, and valuation negotiations. ## Ratio — Your Trustworthy RRF Solution Ratio offers [embedded finance](/content/glossary-item/embedded-finance/index.html) through Boost and true sale financing through [Trade](/content/trade/index.html). So, if you're ready to fuel your business growth without diluting equity or losing ownership — Ratio is here to help.