SaaS Finance & Funding

Get loans to help grow your SaaS business at any stage of the process.

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Funding options


Unsecured Lending

  • Business lending based on your personal guarantee
  • Simple and easy to arrange
  • Borrow up to £25,000
  • Rates from 4.9%

Secured Lending

  • Lending secured on business or personal assets
  • Rates from 2% over base rate
  • No Income Proof Required
  • Borrow larger sums - £250,000 or more

Asset Funding

  • Finance the equipment and vehicles you need
  • Hire Purchase
  • Lease and contract purchase solutions
  • Costs reduced - funding secured on the assets themselves

Talk to Rangewell – the UK's technology finance experts

The SaaS model is effective, provided your business can maintain steady cashflow to grow. Raise finance to make that happen with Rangewell's help.

At Rangewell we recognise your professional status, and we work harder to find you better solutions - which can include 100% finance for many of your needs.

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Finance for SaaS Businesses

Funding for SaaS companies who need to fuel growth or stabilise cashflow.

Worried about finance for your SaaS business? We'll help you understand the lender's market and submit your application, all within 24 hours. 

Table of Contents

Software as a service is big business globally, worth an estimated $200 billion as of 2023. Despite its growth and market proliferation, it’s also a relatively new sector that some mainstream lenders consider risky.

Unlike conventional products or services with more reliable cashflow projections and financial models, the subscription models SaaS businesses rely on are more prone to problems. A successful SaaS business must continue to update and innovate in order to retain subscriptions and therefore protect its cashflow. 

Unfortunately, the pressure of the subscription model poses a challenge for a SaaS business looking to invest in its growth. Not only is it manpower intensive to ensure subscriptions don't lapse, but you also tend to lack capital reserves until your business has been running successfully for long enough. To grow your product, you may need external finance to help provide the capital you need. Lenders who are not well-versed in SaaS may not be willing to support you, so what can you do? 

Rather than having to dig into your own capital or precious cashflow, SaaS businesses can come to Rangewell for help. Our team are experts in the digital sector and have worked with a variety of modern lenders who we have great relationships with. We can identify those who are interested in SaaS and will willingly support your application. We'll help you build that application out and make it robust enough to stand up to lender scrutiny, then negotiate on your behalf. 

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How to finance a SaaS business

Financing a SaaS business is a case of planning ahead. First, you'll need to decide which lenders you want to approach, then make sure you have the right documentation and business case to convince them that your SaaS model will be successful and will generate enough income to repay your loan.

You'll need to create a robust business plan that can convince lenders of your growth potential and ability to repay your credit facility. In addition, you can identify any potential securities you can offer to help mitigate the risk. 

Once you've created your business plan, have the financial forecasts checked by an accountant or other business planning professional. This is the section that will come under the most scrutiny from a lender. You'll then negotiate with the lender to arrange the terms and interest rates governing your loan, which can vary heavily and will depend on the strength of your business plan and negotiations.  

Read our full guide to financing your SaaS business to learn more about the process, or get in touch now and we'll help you succeed. 

Start-up SaaS finance

SaaS businesses require a lot of up-front investment to get off the ground. In addition to the costs of developing and launching your product, you'll need to pay for hosting, support, and marketing.

One of the biggest challenges of starting a SaaS business is finding the right funding to get your business going. Lenders won’t offer business finance to startups who have yet to secure customers as it represents too much risk. Before applying for commercial finance, you must have an active userbase and proven subscription model. 

That means newcomers who have yet to launch will struggle to secure finance. Instead, you may have to look into loans secured against your personal assets. Rangewell can help startups understand this decision and make the right choice for you and your potential SaaS business. Just get in touch today to discuss your idea and see how we can help. 

General SaaS funding

Businesses with an active user base can begin to field lender interest whenever you need to raise capital. There are lots of useful commercial finance options available to you, but what they are and what you can access will depend on your business, individual circumstances and subscription model. 

In general, SaaS companies can access commercial business loans that can be used to finance your growth via marketing, sales or anything else. The terms and rates you’ll receive will depend on your subscription model and userbase as well as your business’s history and financial performance. 

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Resolving SaaS cashflow issues

Cashflow finance can alleviate many of the problems associated with lapsed subscriptions or other cashflow challenges common to SaaS businesses. 

SaaS businesses are exposed to risk due to the nature of subscriptions. If a large client with multiple users cancels their subscription, you can be faced with sudden cashflow issues that could spell disaster for your business. We can help you arrange short-term finance to ‘plug’ the gap and keep your business going whilst you look for new clients or renegotiate with older ones. 

Buying a competitor’s SaaS business

Buying out another business is costly, but can provide huge benefits that may be too attractive to ignore. If you can present a good business case to a lender to demonstrate the financial gains made by acquiring a competitor, you face a better chance at having your application approved. 

In the SaaS world, competition can be fierce but is often limited to a smaller number of successful competitors. That means that buying out a single competitor can represent a significant market shift that will benefit for you years to come. 

Unfortunately, most SaaS companies do not have the relevant capital to hand to purchase a competitor outright. Instead, you’ll need to approach lenders and secure finance that can support the buyout. We’ll help you present your business in the best light, organise your application and negotiate a loan that enables you to take control over a competitor. 

Asset finance

While most finance agreements are secured against your business and its performance, or your personal assets, asset finance is a model where a lender purchases an asset for you and you repay the loan to them. For SaaS businesses, asset finance may be useful if you need to purchase expensive technology such as servers or computers. 

The loan is against the value of the asset itself, so you don't need to put up personal securities. Instead, you'll need to show your business earns enough to repay the lender or you risk having the asset repossessed. 

Asset finance is a great option for new SaaS businesses that need to purchase lots of equipment early on, since the value of the assets themselves give a lender more security than they'd have if they loaned directly to your business. Rangewell can help arrange asset finance deals on everything from plant machinery to computer equipment, visit our asset finance page to learn more. 

Premises finance

While a SaaS business can technically be operated from a single laptop, the reality is that most successful companies end up leasing an office to house employees and create a collaborative environment. A business loan can help pay for a lease, but what if your company has loftier goals?

Premises finance may be an option to explore if you want to buy the building you work from. For some SaaS companies who have the right subscription figures, the clarity of knowing your fixed income rates means you can invest in your premises without fearing the expense. 

However, with cashflow always an issue for any business, premises finance is a smart choice that will help you buy your property without you having to commit all of your own capital. 

Refinancing for SaaS businesses

Refinancing can be a beneficial activity for many businesses and is especially useful for SaaS companies that may have cashflow challenges associated with subscription models and delayed payment. 

Rangewell can help you refinance anything from a single credit facility through to multiple lines of credit across different lenders, resulting in a more manageable repayment schedule or even raising additional funds. 

When profits are dependent on your subscription model and regular payments, you should not accept poor terms on any finance you’ve arranged in the past. Work with Rangewell’s refinancing team and we’ll help you organise any debt and refinance to a smarter payment plan that suits your business model. 

Visit our business refinancing page to learn more. 

How to apply for SaaS business loans

As with most forms of business loan, applying for finance is a fairly defined process. However, that process can always be improved by understanding how it works and how you can improve your chances of success. This process includes:

  • Prepare a business plan that covers your goals and includes robust financial projections. 
  • Research the lender's market to determine which companies may be willing to support you. 
  • Shortlist lenders and prepare your application, or consult our team to help tailor it on your behalf. 
  • Submit your application and await a lender decision. Choose Rangewell to negotiate a better deal for your business. 

Get SaaS business loans with Rangewell

SaaS businesses have a range of needs that all need finance – but lenders will only support you if you have a proven subscriber base and solid financial data. However, if you’re a startup SaaS business, you don’t need to give up - we can also help you arrange finance through an alternative method with a loan secured on your personal assets. 

Finance can be beneficial in many ways – from resolving temporary cashflow issues to investing in marketing or even outfitting a brand new office. As your business grows, you’ll need capital to make the 

So whether you’re an established SaaS company that wants to grow or you’re a newcomer building your SaaS model from the ground up, choose Rangewell as your finance expert and let us work for you to secure the finance you need to facilitate growth.

Last update: 16 June 2023

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