How much debt can a SaaS company raise?

Indicatively, venture debt runs at 20-30% of the last equity round and growth debt at around 1-1.2× gross profit. The exact quantum depends on retention, margins, and burn, and is always subject to further diligence.

What metrics do debt investors look at for SaaS?

Net revenue retention, gross and net churn by cohort, gross margin, burn multiple, and customer concentration. Strong numbers on these directly increase how much you can borrow and on what terms.

Engineers working across multiple monitors

Debt financing for

SaaS & B2B Software

Software companies are well suited to debt financing because contracted, recurring revenue gives lenders forward visibility most sectors can't offer. Facilities can be sized on ARR or gross profit rather than EBITDA, so meaningful debt is available well before profitability.

Lenders underwrite the durability of the revenue base: retention, margins, and how efficiently new revenue is added. A SaaS business with strong net revenue retention can effectively grow its loan capacity without raising another round.

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Best-fit products

The structures that work in SaaS & B2B Software

Cashflow financing

Venture Debt

Non-dilutive runway for VC-backed companies, alongside or after a round.

$2M-$30M

Cashflow financing

Growth Debt

Larger, cheaper debt for scale-ups with established revenues.

$10M-$100M

Asset-backed financing

Asset-Backed Lending

Revolving lines against receivables, inventory, MRR, or equipment.

$5M-$200M

Cashflow financing

Revenue-Based Financing

Capital repaid as a share of revenue: fast, flexible, fully non-dilutive.

$2M-$20M

What lenders like

Why the sector attracts debt capital

Contracted, recurring revenue gives lenders forward visibility
70-85% gross margins leave room to service debt
Net revenue retention above 100% means the book grows on its own
Facilities sized on ARR or gross profit, not EBITDA

What investors will ask

The diligence questions to be ready for

Gross vs. net churn and cohort retention curves: is the revenue actually durable?
Customer concentration: what share of ARR sits with the top 10 accounts, and on what contract terms?
Burn multiple: how much cash is burned per dollar of net new ARR?
The gap between bookings, billings, and recognised revenue

Products, criteria, and themes shown are indicative, not exhaustive, and subject to further diligence on the company and its assets. Every business is assessed on its own merits.

Track record

Deals we've advised in the sector

$10M

Venture Debt

B2B Software

€100M

Growth Debt

HR B2B Software

$100M

Unitranche

B2B SaaS

$25M

Growth Debt

B2B SaaS