SaaS Lending Poised To Be The Next ABL Battleground

SaaS Lending software

It won’t be long now until SaaS lending enters the ABL business. SaaS lending (Software as a Service) separates itself from typical lending software in that it is set up online and can be accessed through the internet alone by users across the globe at any given time.

While much of the world is unaware of the term SaaS, many use SaaS programs in their daily lives without even realizing it. 

For example, Salesforce, Slack, and Uber are all SaaS models. And these are just the popular ones. In fact, 80% of businesses use at least one form of SaaS application. 

Experts estimate that there are over 10,000 private SaaS companies. With a high majority of them being in their early stages. It’s unsurprising that SaaS platforms made their way into the lending world. 

It is also not a surprise that the ABL industry is taking notice. 

The entire SaaS industry will be growing exponentially. 

When it comes to SaaS lending, many of the same ABL standards apply. 

Factors such as:

  • Margins
  • Multi-Year Contracts
  • Liquidity 
  • End-Customers 

One of the biggest differences between SaaS and ABL are the lending calculations. 

Percent of AR is a HUGE difference in comparison to a multiple of Monthly Recurring Revenue).

Most importantly, we can expect SaaS to continue to grow strictly from the convenience of it.

Lending SaaS

“For example, if you’re applying for a Small Business Administration (SBA) loan, you typically have to provide a long list of documents: A business profile, resumes for “each owner and key member of management,” personal and business financial statements, cash flow projections, and many other statements and disclosures. 

The entire process takes an average of 60 to 90 days. Even if completed, there is still an 82% chance they will be denied.”

SaaS lending is quick, easy, and impersonal. 

It only takes a few moments before you get your answer. And if approved, usually you can deposit your funds in minutes. 

With the customer ease provided by Lending Saas it’s hard not to imagine.

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