Revenue-based Finance

No warrants or unnecessary covenants/terms
Apply for Funding

Growth capital repaid with a percentage of your monthly revenue.

Pay less until your revenue increases
Loan payments match your revenue recognition
No prepayment penalties
No equity warrants or personal guarantees
COST
Payback multiples over a 5 year period

1%

Origination Fee

Repayment

made as a percentage of revenue.

Why Choose Element Finance?

We are a team of operators that know firsthand the challenges founders face. We got our start out of necessity. Originally founded by Scaleworks, a SaaS-focused venture equity operator, who faced the challenge of accessing growth capital to grow their portfolio of SaaS companies.

Traditional banks weren’t an option. Banks didn’t value the SaaS recurring revenue model and wouldn’t let to companies without profit or tangible assets.

So Scaleworks started their own fund to help their companies. It went so well, Element Finance expanded to provide companies of all sizes across the world funding without dilution and warrants.

Revenue-based finance is not new despite recent growth in the SaaS world. Revenue-based Finance values the fact a business has revenue and customers then applies a version of royalty finance to fund a loan.

Fund Your Future & Retain Ownership with Revenue-Based Finance:

Scale Growth
Invest in Resources to Execute Your Strategy
Manage Churn
Deliver New or Enhanced Products to Customers
Market Expansion
Bolt-on acquisitions
Bridge loans for specific needs
Refinance existing debt

In three years, we’ve helped our customers grow ARR on average of 38% each year, increasing capital available to founders as they have grown.

We Partner with SaaS or Recurring Revenue Companies With:

$1m or more in ARR with high gross margins (70%)
A track record of growth (15% upwards)
Low customer concentration
Low churn
An experienced management team with a good plan for what they want to do
A clean balance sheet with a ratio of burn to revenue of less than 50%
$1m or more in ARR
A track record of growth
Low customer concentration
Low churn
A good plan for what they want to do
A clean balance sheet

Fund Your Future & Retain Ownership with Revenue-Based Finance:

Scale Growth
Invest in Resources to Execute Your Strategy
Manage Churn
Deliver New or Enhanced Products to Customers
Market Expansion
Bolt-on acquisitions
Bridge loans for specific needs
Refinance existing debt

"In three years, we’ve helped our customers grow ARR on average of 38% each year, increasing capital available to founders as they have grown."

We partner with SaaS or Recurring Revenue companies that have:

$1m or more in ARR with high gross margins (70%)
A track record of growth (15% upwards)
Low customer concentration
Low churn
An experienced management team with a good plan for what they want to do
A clean balance sheet with a ratio of burn to revenue of less than 50%
$1m or more in ARR
A track record of growth
Low customer concentration
Low churn
A good plan for what they want to do
A clean balance sheet

Featured Companies

We help SaaS companies grow dilution free with a boutique, hands-on approach.

Investment Insights

Frequently Asked Questions

How fast can you fund?

Our fastest funding was only four days, but our average time to funding is six weeks. So, we will work with your schedule as best we can.

What size of loans do you offer?

We lend funds from $200k to $10m.

Do you require warrants?

No, we help drive growth, not dilution. We believe warrants are not in the best interest of founders and have never done a loan with a warrant.

Do you share data of companies you’ve lent to?

We value our founder’s privacy and do not share data about our clients without consent.

Will you lend to companies that aren’t profitable?

We lend based on recurring revenue, not profit. Although burning cash to grow is part of high growth strategies, we like to see this done in a managed way that fits the business's objectives and growth plan.

We are okay with pre-profitability if a company has more than $1m in recurring revenue, a manageable cash burn profile, low churn, and plan for an appropriately sized debt funding that will grow the business over the coming year.

Do you have prepayment penalties? Can I prepay my loan?

We have no prepayment penalties. However, we do require a notice period after a pre-agreed minimum term length.

How are other SaaS companies leveraging debt finance with Element?

Our customers use our growth finance in a variety of ways. The most common use is helping with working capital to invest in upfront growth costs such as sales and markets, team expansions, etc. We support the customer in several other ways, including bolt-on acquisitions, bridge loans for specific needs, refinancing existing debt, market expansion, and shareholder buyouts.

How can I determine if I will qualify for funding? What does a good borrower profile look like to get funded?

We can lend up to $10M to recurring-revenue-based companies with $1m or more in ARR that have a good plan, a track record for growth, low customer concentration and churn, and a clean balance sheet.

What does our plan or cash flow profile need to look like?

We lend up to 6x MRR and would want our loan to give your company at least 9-12 months of cash flow runway to enable you to grow. If your cash burn profile is much higher and the loan will only give you runway for 2-3 months, then our loans may require you to raise other funds (e.g., equity) to be invested alongside the loan.

What is an Element Finance fixed rate term loan?

Our fixed rate term loans offer interest-only periods, so you can use more of your cash flow to invest in your growth at the beginning of the loan.

Can I continue to get funds in the future?

Yes. You don’t need to borrow it all up front. You can pull down funds as you need.

What is the difference between an Element Finance fixed-rate term Loan vs. Element Finance Revenue-Based Loan?

A fixed rate term-loan is much more straightforward. Revenue-based finance, from a cash point of view and doesn’t appreciate the time, value of money.

Does my business have to be profitable?

No, we don’t require you to be profitable. As long as you have a good team with a strong strategic path to profitability, we’d like the opportunity to work with you.

Featured Founders

“The team at Element were great to work with - They helped us get the funds needed to finance a bolt-on acquisition, increasing our number of products, customers, and revenue.”

Sameer Kamat
CEO
,
Filestack

“From our first meeting, it was clear that John and his team just get it. Element Finance knows what SaaS companies are looking for and what our unique challenges are. We wanted smart, quick, and efficient directions, and we got it. We’re looking forward to continuing our partnership.”

Bernie Schiemer
CEO
,
Vincere

"Element Finance has been a key part of the growth and success that we've been able to achieve at Karbon. John and the Element team understand how SaaS companies like us operate, they don't try and over-complicate things, and they allow us to focus on the most important stuff without giving up any control."

Stuart McLeod
CEO & Co-founder
,
Karbon

"Element has been a great partner to AG, investing time and effort to understand our business and deliver unique and innovative financing solutions to help us fund rapid growth. They are responsive, transparent, and collaborative in everything they do. John and his team have been extremely supportive and have provided tremendous contributions as we continue to scale our business."

Blake Nolan
CEO
,
Athletic Greens

"Element finance has been a true partner in our growth. They recognized the potential of our solutions and helped us secure funding that is strategically tied to our business model and allowed us to scale."

Omri Friedel
Head of Finance
,
List Reports
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