How to Leverage Non-Dilutive Debt Financing?

How to Leverage Non-Dilutive Debt Financing?

8 min read

How to Leverage Non-Dilutive Debt Financing?

Figure:  Leverage Non-Dilutive Debt Financing

Overview

Are you looking for financing solutions to assist in the acceleration of your company's growth? Consider alternatives to pricey equity financing, such as non-dilutive finance (any financing that does not force you to give up stock or ownership). For early-stage entrepreneurs, this article explores how to leverage non-dilutive financing sources successfully. It would help if you focused on:

Simple ways for increasing the amount of SR&ED tax credits you may claim.

Guidelines for submitting a grant application to the government.

A general review of the many sorts of government grant programs available.

Identify grant consulting businesses and financial institutions that can assist you throughout the non-dilutive funding procedure.

Debt Financing Alternatives that aren't Dilutive

Obtaining working capital: Whether you need to finance new sales and marketing campaigns or grow your operations, a working capital loan with flexible terms may assist you in scaling your firm.

Using Factoring / Invoicing Discounting: Do you have contracts or invoices that have been committed, but you won't get paid for 30, 60, or 90 days? Factoring / Invoicing Discounting may give advances of up to 95 percent of the contract value, which can help businesses improve their cash flow and profitability.

Purchase Order (PO) Financing: You have a purchase order, but you need cash in hand right once to cover accumulated inventory or manufacturing expenses. Based on the purchase order terms with your customer, PO Financing may develop non-dilutive debt financing options to help you infuse funds into your firm.

Credit Cards: Using business credit cards to pay suppliers and vendors, as well as to leverage your current line of credit provided by your credit card, maybe quite beneficial. The use of a business credit card will also assist you in building your company's credit history.

Research and Development Financing: You've been awarded a research and development grant, but you'll have to wait many weeks or months for the money to come. R&D Financing allows your firm to get advances of up to 95 percent of the grant amount, allowing you to infuse funds into your business operations immediately.

Value of non-dilutive financing

Non-dilutive financing, a mix of government grants and short-term loans, is another alternative for entrepreneurs looking to raise capital. Because government support is low-cost and non-dilutive, it offers a competitive edge.

Companies may de-risk their goods, demonstrate market traction, and speed growth while incurring the least amount of dilution. This can result in a greater value for the firm.

Consequently, CEOs are better positioned to evaluate other forms of finance, such as venture debt, venture capital, and commercial loans, that are accessible for later-stage enterprises.

Right Debt Capital Program

River SaaS Capital offers all three kinds of venture debt funding and equity venture loan financing. Your firm and platform and your development plan will be investigated further by our investment team in collaboration with you. To help you reach your objectives, we will assist you in developing a SaaS debt financing solution. Several firms have benefitted from debt financing, and we are ready to assist you in doing the same.

Conclusion

Overall, you need to use all alternative to leverage the non-dilutive financing. The best alternatives are obtaining working capital, using factoring / invoicing discounting, purchase order (PO) financing, credit cards and research and development financing.

Contact us now to find out more.

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