SaaS and software company finance
Non-dilutive funding for SaaS and software companies, from revenue-based finance to R&D tax incentive advances, through a panel of 100+ bank, non-bank and private lenders.
- Revenue-based finance
- R&D tax incentive advances
- No obligation
In a nutshell
Software and SaaS companies can borrow against their recurring revenue instead of raising equity, so founders keep more of the company. Specialist lenders offer revenue-based finance and lines of credit sized on monthly recurring revenue, advances on the R&D tax incentive refund, and venture debt alongside equity rounds. Most look for steady recurring revenue and enough cash runway, and some lend unsecured without a director's guarantee.
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AFCA memberPanel of 100+ bank, non-bank and private lendersAt a glance
- Growth funding
- Revenue-based finance and lines of credit
- R&D tax incentive
- Advances on your expected refund
- Venture debt
- Alongside equity rounds
- Sized on
- Recurring revenue, growth and runway
- Dilution
- None, unlike equity
- Interest rates
- Vary by lender and business
How software companies use debt funding
Software and SaaS companies often spend ahead of revenue: on engineers, product and customer acquisition, with the payback coming months later as subscriptions renew. Equity has traditionally filled that gap, but each round costs founders a share of the company. Debt funding sized on recurring revenue lets you fund growth you can already see, extend your runway or bridge to a round, without giving up equity.
Revenue-based finance and lines of credit
Revenue-based lenders look at your monthly recurring revenue, growth, retention and runway, usually by connecting to your accounting, billing and banking data. Funding is typically sized as a multiple of monthly revenue and repaid over 1 to 3 years, or drawn as needed from a line of credit. Smaller amounts are often unsecured.
R&D tax incentive advances
Eligible companies receive the R&D tax incentive refund only after lodging their tax return, often many months after the R&D spending. R&D advances let you draw part of the expected refund during the year, so the cash is available when you're spending it. The lender is repaid when the refund arrives. Talk to your R&D adviser about eligibility.
Venture debt
Venture debt is lending to venture-backed companies, usually alongside or soon after an equity round. It extends runway between rounds with less dilution than raising more equity, and typically suits Series A and later companies with investor backing.
Bank lending for established software companies
Profitable, established software companies can also borrow from banks on their earnings, usually as a multiple of EBITDA, at a lower cost. Banks want a longer track record and profits, so most growth-stage SaaS companies use specialist and non-bank lenders first.
What lenders look at
- monthly recurring revenue and its growth
- churn, retention and customer concentration
- gross margins and how efficiently you acquire customers
- cash runway and your plan to reach profitability or your next round
- existing investors and debt
Eligibility and documents
What lenders usually look for
- An Australian company, or in some cases a New Zealand one
- Predictable recurring revenue, from about $50,000 a month with some lenders
- Enough cash runway, often at least 3 months
- Healthy retention, churn and gross margins
- For R&D advances, eligible R&D activities and a registration or plan with your R&D adviser
Documents you may need
- Company and director identification
- Access to your accounting, billing and banking data, often through secure connections
- Monthly management accounts, and MRR, churn and cohort metrics
- Your cash flow forecast and runway
- For R&D advances, your R&D claim details or estimate
Requirements vary by lender. All lending is subject to each lender's credit criteria and assessment.
What lenders publish for software companies
Here's a selection of what lenders publish about funding for software and SaaS companies. It isn't a full list of lenders or a ranking.
- Tractor Ventures offers growth capital of $100,000 to $3 million over 12 to 36 months, unsecured and with no director's guarantee under $300,000, for companies with $50,000 or more in predictable monthly revenue and at least 3 months of cash runway. Profile →
- Tractor Ventures' R&D Advance lets Australian companies draw up to 80% of their forecast R&D tax incentive refund in quarterly draws, and its venture debt funds Series A and B companies alongside venture capital investors. Profile →
- Macquarie lends to companies that create, sell, maintain and host business software, typically with more than $5 million in revenue, at up to 3 times EBITDA. Profile →
- Lumi's business loans and lines of credit go up to $1 million, mostly unsecured up to $300,000, for businesses trading 6 months or more with $50,000 or more in annual revenue. Profile →
- OnDeck's unsecured small business loans go up to $300,000, for businesses trading at least 1 year with $100,000 or more in annual revenue. Profile →
A sample of lenders, as published by each lender, checked 23 October 2026.
Debt or equity for a software company?
Ownership
- Debt funding
- You keep it; no dilution
- Equity funding
- You sell part of the company
Cost
- Debt funding
- Interest and fees, repaid over the term
- Equity funding
- A share of future value, with no repayments
Based on
- Debt funding
- Recurring revenue, growth and runway
- Equity funding
- Growth potential and the market
Speed
- Debt funding
- Usually weeks
- Equity funding
- Often months
Best for
- Debt funding
- Funding growth you can see, extending runway, or bridging to a round or R&D refund
- Equity funding
- Large, uncertain bets and early-stage companies without revenue
| Debt funding | Equity funding | |
|---|---|---|
| Ownership | You keep it; no dilution | You sell part of the company |
| Cost | Interest and fees, repaid over the term | A share of future value, with no repayments |
| Based on | Recurring revenue, growth and runway | Growth potential and the market |
| Speed | Usually weeks | Often months |
| Best for | Funding growth you can see, extending runway, or bridging to a round or R&D refund | Large, uncertain bets and early-stage companies without revenue |
Related guides
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FAQs
Questions about SaaS and software company finance
Often, yes. Revenue-based lenders look at recurring revenue, growth, retention and cash runway rather than profit. Banks usually want profitable companies with a few years of history.
It depends mainly on recurring revenue, growth and runway. Revenue-based lenders often size funding as a multiple of monthly recurring revenue; Tractor Ventures, for example, lends $100,000 to $3 million.
It's funding against the R&D tax incentive refund your company expects to receive after lodging its tax return. Some lenders advance up to about 80% of the forecast refund during the year, so you don't have to wait for it.
Venture debt is lending to venture-backed companies, usually alongside or soon after an equity round, to extend runway with less dilution. It typically suits Series A and later companies.
Not always. Some lenders don't require a director's guarantee for smaller amounts; Tractor Ventures, for example, says it doesn't under $300,000. Larger facilities usually take a general security agreement over the company.
Usually a few days to a few weeks, depending on the lender and how quickly you can share your data. Tractor Ventures, for example, says funding takes around 14 days on average.
No. There's no cost to you for our service. We're paid by the lender when your funding settles, and there's no obligation to proceed.
This page is general information only and isn't credit, tax or financial advice. Lender details are taken from each lender's published information, checked 23 October 2026, and can change. All lending is subject to each lender's credit criteria and assessment.