If you own a business that is growing, you will likely outgrow many of the smaller software packages that you may have started with in the beginning. Terms like ERP, SaaS, and CRM become familiar terms when it's time to shop business software.
Software companies that create this premium business software typically offer financing to only “A” credit businesses and almost always require a personal guarantee from the business owner. Software license financing is considered high risk financing by traditional lenders, leaving growing businesses without credit lines with very few options. When a company needs financing for a non-tangible asset like SaaS software, software customization, or software maintenance contracts in many cases it is impossible to find.
Legal entities like corporations and LLC’s are created to insulate their owners and shareholders from legal action. When a company needs financing its important to secure that financing without compromising this protection. Non-traditional lenders, such as crowdfunding companies, personal investment firms, angel investors, and receivable advance lenders are often viable options for businesses falling outside the SBA loan guidelines. Companies that have a business bank account with monthly deposits of $20,000 or more can often get approved for financing regardless of their credit history.