Capchase Extend

Capchase works with these users and organization types: Capchase Extend ... Mid Size Company, Small Business, Enterprise, Freelance, Nonprofit, and Government.

what's much better owning 100 of a 10 million
company or 15 of a 100 million dollar
business the response how about the very best of
both
you're right with standard funding
that's not actually a choice until now
keep your 100 with cap chase we utilize information
to make funding faster fairer and more
versatile based upon your future
predictable earnings and after that we cover it
all up with a single transparent charge
so let's get this party started at

There is always a moment when a start-up's founders, senior management team, and leading finance executives assess techniques for how to scale the business to the next level and catalog what's required to do that successfully. Securing funding at an early stage can speed up growth and cause attainable and quantifiable success. Ultimately, finance supervisors and the tactical planning team need to pick the right funding source to assist the company reach its objectives.

It can be challenging to select the funding model that finest lines up with the strategic targets that management sets for the company. Weighing the risks and competitive hazards in a balanced and intelligent way is crucial as it can decide the future of your business The ramifications of offering equity, handling irregular cash flow, interest rate movements, and the requirement to make prompt payments to lenders are among the elements to consider, just among others.

That said, with the increase of new and more sophisticated financing options that put the business interests of start-ups and midsize business initially, there's typically a method to determine a solution that's a great fit. It is very important to examine the different financing choices that are available to a business's founders, management accounting professionals, and financing officers and what considerations they require to make for both the long and brief term.

Lobo here co-founder at traction and boast AI thrilled to host Miguel Fernandez co-founder and CEO of capchase a service provider of non-dilutive development capital for recurring Revenue companies basically helping companies grow without quiting that valuable Equity you took so long to construct Miguel welcome to traction thank you so much for joining us Hey Lloyd thank you so much for having me it's terrific to be here yeah I'm very thrilled to share more incredible I'm excited to enter your backstory so let's kick this off how did you come together with your Founders why cap Chase what else did you think about from what I understood you're a first time founder first time creator it resembles you struck a crowning achievement out of the park out of evictions I love it man that's fantastic well as quickly as they won you understand like it's never the Crowning achievement never ever like never ever counts up until the game is over ideal essentially so so so yeah um we are 4 co-founders you know and it's amusing due to the fact that we've all satisfied through first as good friends you know and then as co-founder so uh there's three of us that collaborate at the very same SAS company in in Spain so all of us signed up with when it was really early I signed up with as the first individual in sales and there are two people joined us that as product managers generally and we see the business from no to a couple of million err over 3 years and after that we left um at the same time roughly I went to company school and I went to company school on the other one went to do a stint in VC with the objective of going to service school later on so when I go to organization school I I got into into Harvard and you know I was really excited about it my whole objective was to go there to read more about how to end up being a founder and after that ideally release something upon graduation and the one that I landed there I was researching already a concept with among these co-founders and it was authentic concept it had nothing to do or very little to do with what we're doing now but you understand that was the beginning of the journey and the novice Journey or the Insight that we had was that hey there remain in specific verticals there are a lot of consecutive payments you understand and circular payments in between business and today you simply have to wait for that series to develop or you know like there's nobody simplifying those circular payments so we considered hi why do not we do something comparable to like a split sensible or business in verticals such as you know fried or Logistics or building you understand you have a ton of celebrations that have to wait for various payments like they're all involved in one way or another so envision you have a platform and after that you have company a post Business B 100 and Business B Home Company c a hundred dollars in reality with this platform what would happen is a company.


a would pay a hundred the platform Company B absolutely no they would get they would pay absolutely no or receive no and then business C we get a hundred dollars so when we're talking with large business they all liked it however it was the common like cold start problem I'm like hey this is fantastic when everybody remains in the platform but until then it's it's quite difficult to get people to do anything so it was all about hi how do we get more data how can we sort of kick start this platform um without utilizing the platform to start with so it was all about getting more information and to get more information we got to two conclusions it resembles we either get information through providing an Analytics tool a workflow tool or we offer a funding we have a financing and we get the people or data offer us information in order to get funding so you know we began doing that like checking out a growing number of and more and then what we require what we saw is that we understood more about sales than anything else we were actually thinking about fintech and particularly in funding and you know like we would look at different modes different verticals and so on for 2 weeks at a time if we found enough things we would go for two more weeks if we didn't would suffice and after that in January 2020 we had the the idea you understand which is funny of offering this this SAS companies at all so they might extend terms to the consumers however constantly get the cash in advance so we're fixing the funding payment properties business have which is they have in advance expenses to get clients and after that they get paid months of the month right so to prevent that cash card that every SAS business deals with and that we faced in the past in the previous experience the objective was to give them a tool so they could say to the customer hey look the rate is 100

each year and if you wish to pay regular monthly fantastic use capshase you understand um and after that Creators like that they resembled hello men this is remarkable this is the Holy Grail of SAS because I have to do discount rates so my ACV increases and I can close sales quicker since I'm offering versatile payment terms so it resembles the Holy Grail you know you increase ACV you reduce cell cycle typically it resembles a compromise you know and then the next thing they said was like hi why don't I do this for all my client base instead of for every single brand-new consumer that I get right so why do not I do this for my 300 clients instead of doing it for the net for the 10 new customers I get months of a month so then we saw what they wanted was to transform their ARR or the consumer base into in advance funding to be less dependent on Equity as I stated the beginning yeah okay this is what we're going to begin with and then we're going to learn a lot so we're gon na do the rest later on and that's when the 4th co-founder joined who has a pal at HBS and after that guy we began dealing with it like crazy and and left what is your long-term Vision so it began with you know you arrived at this hate you if you're sitting on ARR we understand the company's uh churn we know the business's retention gross margins And so on so I can take their ARR and provide them up front x times times x ARR or times x mrr but what is a long-term vision of of the company so for us it's it's it's or it's all around SAS business right like we just method with such business deliberately right so we withstood the

urge to go and work with funding you understand with any vertical we just deal with SAS so our goal is to develop several products for SAS so we start with funding and it's excellent since business actually depend on us we actually like a partner and we we help them to not just get financing but work much better in a more effective method and through that we're finding you understand opportunities to broaden you understand in the transaction of a SAS item Capchase Extend

Capchase Extend