Financing Options

 

Recurring Revenue Financing

 

What is it?

Specifically designed for SaaS and other sticky, high margin, subscription revenue companies, Espresso’s Recurring Revenue Financing offers your company an opportunity to accelerate growth and expand sales while eliminating, or deferring, the need for higher cost equity.

If your company has demonstrated predictable and profitable customer acquisition and achieved minimum operational scale with monthly recurring revenue ranging from $100,000 to $1 million, your company may benefit from Espresso’s Recurring Revenue Financing in a number of ways.

How do I qualify?

Our evaluation begins by determining if your company has demonstrated predictable and profitable customer acquisition AND achieved minimum operational scale. Learn more about SaaS metrics here.

How does it work?

Our financing is structured as a credit facility, allowing you to borrow up to 6 times your monthly recurring revenue.

How does it benefit me?

  • Quick access to funding that allows your company to achieve greater critical mass, and grow enterprise value ahead of equity financing
  • Lower cost of capital and less dilutive vs equity
  • Flexible and user friendly repayment terms based on your changing needs and evolving business conditions
  • Reduced complexity, avoids need to undergo a valuation of the company and other steps required in the course of an equity financing

 

Tax Credit & Government Incentives Financing

What is it?

Espresso’s Tax Credit Financing represents a fast and painless source of incremental investment capital for companies at all stages of development.

Espresso provides financing for a wide range of tax credits including SR&ED, various provincial digital media tax credits, OIDMTC, Quebec`s CDAE tax credit, and Quebec and BC mining and exploration tax credits. Other types of government tax credit and incentive programs that are funded in arrears (i.e. after incurring qualifying expenditures) may also qualify.

Click here to learn about SR&ED

Click here to learn about Digital Media Tax Credits for various provinces

Click here to learn more about Quebec Development of e-Business Tax Credit

How do I qualify?

Qualification criteria is based on a past track record of successful claims, good quality record keeping systems with organized and up to date supporting documentation, and sufficient cash resources (including Espresso funding) to fund business cash flow needs until receipt of the tax credit refund and repayment of the Espresso loan.

How does it work?

Our Tax Credit Financing is offered as a flexible credit facility, which you draw from as you accrue your tax credit refund.

How does it benefit me?

Our funding is available in as little as 10 business days. For early stage companies, it can finance your critical next steps in product development and go-to-market. For expansion companies, it can maximize your total funding between equity rounds.

 

Working Capital Financing

What is it?

Espresso’s Working Capital Financing is a fast and flexible solution for your short-term cash flow needs. Our account receivable, contract and other working capital financing solutions  help borrowers leverage their working capital assets to accelerate the cash flow cycle and ensure they have sufficient liquidity.to operate and grow their businesses.

How do I qualify?

Our due diligence process will evaluate the strength of your working capital assets, including the diversification of your receivables, geographic location, customer creditworthiness, historical default experience, and other factors. In addition to analyzing your working capital assets, we will also evaluate the overall creditworthiness of your business. Unlike traditional “factoring” structures, Espresso does not acquire title to your receivables or other financial assets.  As such, our diligence will include a general evaluation of your business, much like a normal loan.

How does it work?

Our Working Capital Financing solutions are structured as credit facilities. The amount of available credit will vary depending on the value of the underlying working capital assets being financed. While Espresso will take security, we do not acquire an ownership interest in the underlying assets allowing the borrower to maintain full control over its working capital assets, including the collection of accounts receivable.

How does it benefit me?

Espresso’s Working Capital Financing solutions are designed to meet the unique needs of technology companies. We work closely with borrowers to structure solutions that meet the company’s particular working capital needs, ensuring your business has access to the capital it needs when it needs it.