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Resources

A curated collection of insights, common terms, SaaS funding industry updates and venture-debt custom calculators to help you navigate the world of growth finance.

Insights

Category
Finance
November 30, 2022

The SaaS Finance Report Is Here! Learn How to Plan & Prosper in 2023

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Growth
November 22, 2022

3 Reasons Why Small Businesses Should Invest in Automation to Grow Profits

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Finance
November 15, 2022

How Much Cash Should You Be Burning?

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November 3, 2022

How Much Cash Runway Do SaaS Companies Need?

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Finance
October 26, 2022

The Pros and Cons of Convertible Notes

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Finance
October 25, 2022

Meet Wyatt Messex - Element Finance Analyst

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Operations
October 12, 2022

3 Things to Consider When Pricing a SaaS Product

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Finance
September 27, 2022

Series A vs. Revenue-Based Financing: The Pros and Cons of Each

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Operations
September 6, 2022

5 Tips for Bootstrapping Your SaaS Company

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In the news
August 2, 2022

Element Finance Partners with FundStory to Provide SaaS Companies Non-Dilutive Capital

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Finance
July 28, 2022

Buyer Beware. What to Consider Before Using Short-Term Loans.

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In the news
June 29, 2022

Element Finance leverages emerging leader in Fintech to improve the lending process easily and securely for SaaS customers.

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Operations
June 2, 2022

8 Mistakes Founders Make

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Finance
May 17, 2022

5 Metrics Every SaaS Company Should be Focused On

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Finance
March 21, 2022

Get Your Complimentary SaaS Finance Health Check

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Calculators

Cost of Equity Warrants Calculator

Revenue Based Financing Calculator

Term Loan Repayment Schedule Generator

Cost of Debt vs Equity Calculator

Interest Rate Calculator

Element Finance vs. Short-Term MRR Loan Calculator

Guides

Common Terms

Category

What is Dynamic Pricing?

Dynamic pricing is the process of setting prices for products and/or services in real-time based on the fluctuation of other market factors to maximize revenues while controlling costs.

Defining Cost of Goods Sold

Element Finance defines cost of goods sold

How to Refinance Short-Term Debt

3 Ways to Refinance Short-Term Debt

What to Know about Short-term Lending Fees

Short-term Lending Fees - simple solutions can prove much costlier from a finance perspective than meets the eye.

What is Forward Factoring

Forward factoring is a short-term source of finance that must be repaid within 6 - 12 months.

How a Line of Credit Works vs. a Fixed Loan

Element Finance answers how a line of credit works differently than a fixed loan

How Collateral Can Work for Your SaaS Company

Element Finance explains how collateral can work for your SaaS company

What is a Business Credit Profile and How is it Used?

A business credit profile is used by lenders to determine whether to offer credit to a business.

What is an Annual Percentage Rate?

Element Finance answers the question, "What is an Annual Percentage Rate?"

Collateral and How It Works

As a source of security for repayment, lenders often look for the potential borrower's assets

What Constitutes a Default?

A default is a breach of a legally binding agreement(s) that two parties had previously set out

Cash Flow Defined

Cash flow is the actual movement (inflows and outflows) of cash within a business' operations

Retention Explained

Retention can be calculated in two primary methods; Net and Gross. At Element, we like to focus on Net Dollar Retention (NDR) rather than Gross Dollar Retention (GDR).

What is Cash Burn?

Cash burn is usually identified in two main ways: Net Burn and Gross Burn. Both of these are necessary measurements, but at Element, we focus on Net Burn.

What is Venture Capital?

Venture capital is a common element of the capital stack for early-stage businesses that need large amounts of money to get going.

Private Equity Explained

Private equity investors buy partial or complete ownership stakes in mature businesses

What are Strategic Investors?

Strategy investors will provide different equity and debt solutions to businesses that correlate to their own business and see an overlap in services, customers, and products.

Venture Debt & Growth Finance Explained

Venture debt is a loan product offered by some banks and other lenders. These types of loans are for growing companies where there is more risk than a traditional bank loan would work.

What are Seed Funds & Accelerators?

Seed capital is provided by private investors – usually in exchange for an equity stake in the company or a share of the profits of a product.

Bank Debt Defined

Commercial banks give loans to businesses that have advanced to a mature stage in revenue, customers, product, and cash flow.

What Are Grants?

A business grant is money awarded to businesses undertaking innovation or have the prospect of growth, resulting in employment creation.

How Amortization Works

What a word! It sounds like it should be up there with death and taxes. Fear not. This is just the word to describe how…

What is an Equity Warrant?

What is an equity warrant? A warrant is the right to purchase or sell something at a specified price. In venture finance, the most common…

Bullet Payments: 3 Common Scenarios

Also known as a “balloon payment” or “bullet repayment,” a bullet payment is a lump sum payment made for the entirety of the outstanding balance…

Multiple Payoff Loans: What You Need to Know

At its core, the multiple payoff approach is pretty straightforward compared to other loan repayment methods. The loan agreement will stipulate a multiple of the original loan amount that needs to be repaid by the end of the term.

Convertible Notes Defined and Why They are Used

What is a convertible note? The word note is a generic term for a debt security. A convertible note is a debt security that can…

Gross Cash Burn vs Net Cash Burn Explained

Net Cash Burn = Opening Cash Balance – Closing Cash Balance Net cash burn (also known as net-negative cash flow) should always equal the amount…