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If you're a startup looking to get into the world of software as a service (SaaS), you'll need to find the right financing to make it happen.
SaaS acquisitions can be a great way to grow your business. Buying a micro-SaaS is less complicated than many business models because of the small size and the lower price point. You won’t need to bother with venture capitalists or private equity firms.
Many people who purchase a micro-SaaS utilize a combination of the following options:
Put your home to work for you by tapping into the equity you’ve built. This is a great way to acquire cash because it’s quick and relativity easy. Also, a home equity loan will often come with a lower interest rate than other types of financing.
You can also refinance your home mortgage and take cash out. This will avoid having a second payment every month. Plus, depending on interest rates, this could end up saving you money in the long run.
Invest your own savings into your business. As long as you’ve done your homework and are confident in the viability of your new business, the return on your investment could be much larger than any interest you’re currently earning.
If you aren’t able to pull together enough cash with the first two options, consider using outside financing.
Pipe is a financing firm that specializes in working with SaaS purchasers. Pipe has a unique trading platform that allows companies with recurring revenue to convert their monthly, quarterly, or multi-year streams into upfront cash at discounts.
Pipe also works directly with MicroAcquire Partners, a company that matches up SaaS buyers and sellers.
Best of all, Pipe makes acquiring financing painless so you won’t waste any time in getting your new business going.
You can always go through your bank or credit union to acquire a traditional business loan. Many banks have special programs for small businesses.
Be sure to shop around at different lending institutions to make sure you’re getting the best rate.
There's no one right way to finance your first SaaS acquisition. You may have other options available, such as cashing out stocks or other investments.
The important thing to remember is that acquiring a SaaS is less complicated than you think and a great way to grow your business.
Schedule a call with an Acquisition Specialist and launch your own SaaS today.