# Technology & SaaS Business Loans

> Software and tech companies spend on engineering, sales, and cloud costs months before recurring revenue catches up — and raising equity to cover the gap means giving up ownership. Hoss Capital matches SaaS and tech founders with funding partners who lend against recurring revenue so growth doesn't have to cost a bigger slice of the cap table.

## Key takeaways
- Tech companies spend on engineering, sales, and cloud months before recurring revenue catches up, creating a runway gap debt can bridge.
- Non-dilutive options like revenue-based financing, lines of credit, and term loans fund growth without giving up equity.
- Lenders focused on software underwrite on recurring revenue, growth, and retention (metrics like MRR) rather than profit or hard collateral, so pre-profit companies can qualify.
- The right fit depends on the model — SaaS suits revenue-based financing, dev shops look like professional services, and hardware may need equipment or inventory financing.

## Funding built for recurring revenue, not hard assets

Software and technology companies have an unusual financial shape: high gross
margins and predictable recurring revenue, but a deep upfront cost curve. You
pay engineers, sales reps, and cloud bills today to win a customer whose
subscription pays back slowly over the following year or more. That gap between
spend and recurring revenue is the central cash-flow challenge — and the reason
many otherwise healthy tech companies look cash-poor.

### The options that fit tech companies best

- **Revenue-based financing** — repayment scales as a percentage of monthly
  revenue, matching the natural rhythm of a subscription business and underwritten
  on metrics like MRR and retention rather than equity.
- **Business lines of credit** — flexible, non-dilutive cash to cover payroll,
  cloud costs, and the gap on annual deals billed monthly; draw and repay as
  needed.
- **Term loans / working capital** — fund a defined push such as a key hire wave,
  a marketing ramp, or extending runway between equity rounds.

### Cash-flow dynamics by sub-segment

The model drives the fit. **SaaS and subscription businesses** have the most
predictable revenue, making revenue-based financing and recurring-revenue lines a
natural match. **Services and dev-shop / IT consultancies** bill on projects and
net terms, so they look more like professional services — a line of credit
bridges payroll between client payments. **Hardware and deep-tech** carry
inventory and component costs that may suit equipment or inventory financing.
Across all of them, the appeal of debt is the same: capital that funds growth
without permanently diluting the founders and early team.

### Why match through Hoss Capital

Traditional lenders want collateral and profitability that a growing tech company
may not have yet. Hoss Capital routes your profile to partners that underwrite on
recurring revenue and growth, so you're matched with lenders who understand how
software companies actually make and recognize money.

---
Canonical: https://hoss-capital.pages.dev/industries/technology/