Founderpath funds SaaS companies against their recurring revenue, with no equity, warrants or board seats: revenue financing from a 7% discount rate at $1M-$3M ARR, term loans from 15% interest at $3M+ revenue, and lines of credit from $250K to $5M.
Link billing, banking and accounting. No pitch deck or forecast model: your recurring revenue is the underwrite.
We size an offer against your recurring revenue, retention and margins. The rate, amount and repayment are disclosed before you accept.
Revenue financing typically lands within 24 hours of accepting. Term loans close in under four weeks. No equity, warrants or board seats.
The right structure depends on your ARR, how much you need and how you want to repay. These are the terms each product page states.
| Dimension | Revenue financing | Term loan | Line of credit |
|---|---|---|---|
| Company stage | $1M-$3M ARR | $3M+ revenue | Sized against recurring revenue |
| Size | Up to $1.5M per round | $500K-$10M | $250K-$5M facility |
| Cost | Discount rate from 7% | Interest from 15% | Interest on the drawn balance only |
| Repayment | Fixed monthly amount, set up front | Up to 24 months interest-only, term up to 4 years | Repay anytime, then draw again |
| Speed | Typically within 24 hours of accepting | Under 4 weeks to close | Draws in minutes once in place |
| Equity, warrants, board seats | None | None | None |
| Security | Lien on business assets, no full personal guarantee | Lien on business assets, no full personal guarantee | Lien on business assets, no full personal guarantee |
| Common SaaS use | A hire or a proven channel, paid from subscriptions | Refinancing, buyouts and acquisitions | Lumpy months between annual renewals |
Cash advanced against future subscription payments at a discount rate from 7%, up to $1.5M per round, repaid in fixed monthly amounts. Built for SaaS companies at $1M-$3M ARR.
A lump sum of $500K-$10M from 15% interest, with up to 24 months interest-only and a term of up to four years. Built for software companies with $3M+ in revenue.
A committed revolving line of $250K-$5M, sized against recurring revenue. Draw in minutes, pay interest only on the drawn balance and repay anytime.
“That’s exactly where the Founderpath comes in. We basically take the money today of what we would make on that student within the next year and buy the traffic now…”
Buy more of a paid channel with a known payback, funded against the subscription revenue those customers will pay over the next year.
Replace a more expensive loan with one priced on your recurring revenue, as Badger Maps did with $1.8M of its first $2.8M term-loan tranche.
Add sales or engineering headcount before the ARR it will produce shows up, using interest-only months to cover the ramp.
Fund growth with debt instead of selling shares, so you own more when you sell. Exercise.com’s founder says Founderpath capital is a huge part of why its sale gave him the most personal liquidity he has achieved from a transaction.
Term loans can fund a buyout for software companies with $3M+ in revenue, so the remaining owners keep the equity.
For an acquisition, underwriting reviews the target’s financials alongside yours and lends on the combined company’s ARR, generally capped around 50% combined leverage.
“I was able to spend a lot more on Google ads. And that’s really paid off fast, which I didn’t think was gonna be the case…”
Compare a disclosed rate against the equity it replaces, the shape of the payments and the cost of getting out early.
A $500K term loan at 15% costs $75,000 in interest for each year the full balance is outstanding. Raising the same $500K by selling equity at a $20M valuation gives up 2.5% of the company: worth $500K at that price, and $1.5M if the company later sells for $60M. Founderpath discloses the rate on the term sheet before you accept, with no warrants, origination fees or prepayment penalty on term loans.
Founderpath revenue financing repays a fixed monthly amount set up front, like an amortizing loan, rather than a percentage of each month’s sales as a merchant cash advance does. Term loans add up to 24 months of interest-only payments, which protects cash flow while a hire or channel ramps.
You can repay early: revenue financing generally saves the remaining discount, and term loans carry no prepayment penalty. Revenue financing can be drawn again as recurring revenue grows, and a line refills as you repay. Steve Benson used $1.8M of Badger Maps’ first $2.8M tranche to refinance a loan he already had, and the other $1M to grow.
Founders on the deals they took, quoted from their recorded testimonials.
“You were not the cheapest headline, but… when you do an IRR, you look at every single fee, every single cost, every little thing.”
“If you can do it on the back of non-dilutive capital and that’s the best way for a founder to grow the company.”
“This is the most personal liquidity I’ve been able to achieve from a transaction, and that’s in huge part to Founderpath.”
“This generated probably tens of millions in enterprise valuation, significantly a better outcome than, call it, tens of thousands of dollars of interest that I paid over a period of under a year.”
No pitch deck, no scarcity, no countdowns. Connect your data and we'll show you exactly what you qualify for — every figure disclosed up front.
Software companies with recurring subscription revenue, mostly bootstrapped B2B SaaS, plus subscription businesses such as Scholarship Owl. Revenue financing is built for companies at $1M-$3M ARR and term loans for companies with $3M+ in revenue. Pre-revenue companies and businesses without recurring revenue are not a fit.
Revenue financing runs up to $1.5M per round, and you can draw again as recurring revenue grows. Term loans run from $500K to $10M. Lines of credit run from $250K to $5M. Each offer is sized against your recurring revenue, retention and margins.
Revenue financing carries a discount rate from 7%. Term loans carry interest from 15%. A line of credit charges interest only on the drawn balance, at a rate disclosed up front. The rate is set by your growth, retention and margins and shown on the term sheet before you accept.
No. All three products are non-dilutive: no equity, no warrants, no board seats and no full personal guarantee. Founderpath takes a lien on business assets only.
Revenue financing typically lands within 24 hours of accepting the term sheet. Term loans close in under four weeks. Once a line of credit is in place, you can draw in minutes.
Revenue financing suits a $1M-$3M ARR company that wants up to $1.5M repaid in fixed monthly amounts and the option to draw again as revenue grows. A term loan suits a company with $3M+ in revenue that needs a larger sum, up to 24 months of interest-only payments and up to four years to repay. Companies can use both: Exercise.com combined revenue financing and a term loan across 19 draws.
Yes. There is no prepayment penalty. Repaying revenue financing early generally saves the remaining discount.
Yes, typically with a term loan. For an acquisition, underwriting reviews the target’s P&L, balance sheet, customer list and bank data alongside yours, and lends on the combined company’s ARR, generally capped around 50% combined leverage.