RATIO BLOGS

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3 US-Based Recurring Revenue Financing Partners to Look at in 2024

The SaaS industry is worth approximately $195 billion, and the US SaaS industry is set to grow by over 2x by 2025. Conclusion? The SaaS market is on fire! But with that comes several challenges — lack of funding, poor product adoption, etc. — the reason why 90% of SaaS start-ups fail to achieve the desired level of success.

Ratio Team
January 4, 2024

5 Compelling Reasons for B2B SaaS Firms to Opt for Revenue-Based Loans

BCC Research reveals a striking growth in the Revenue-Based Financing (RBF) market: from $2.3 billion in 2022 to an anticipated $154 billion by 2030. This surge is hardly surprising, considering how revenue-based loans are revolutionizing the way businesses finance their expansion. These loans present a groundbreaking approach: repayment terms are linked to a business's recurring revenue.

Ratio Team
December 7, 2023

An Entrepreneur's Guide to B2B Payment Flexibility

Are you tired of chasing delayed payments and worrying about your company's cash flow? If so, you're not alone. 55% of all B2B invoiced sales are overdue in the United States at the moment, while an average 9% of all credit-based B2B sales are affected by bad debts. These figures highlight the urgent need for businesses to reconsider their approach to payments. Late B2B payments and increasing debt severely impact a company's financial health, jeopardizing its existence.

Ratio Team
December 7, 2023

The Entrepreneur's Roadmap to Acquiring Non-Dilutive Funding

Fundraising stands as a pivotal element in company development, impacting growth, profitability, expansion, sustainability, financial autonomy, and mentorship. At the crossroads of these factors, two fundraising choices emerge: non-dilutive and dilutive funding. Equity financing, while attractive, comes with its set of complexities. Non-dilutive funding offers a potential solution for those seeking to sidestep its intricacies. This article delves into non-dilutive funding options, their pros and cons, and strategies for securing it for businesses.

Ratio Team
December 7, 2023

Seven B2B SaaS Pricing Models and How to Choose the Right One

Research shows that SaaS companies could boost their profits by 11% by increasing their prices only by a humble 1%. Yet, SaaS businesses often overlook effective pricing, with most companies investing just 6 hours in developing their pricing models. This will have to change.

Ratio Team
December 4, 2023

5 Things to Look for in an Ideal Subscription-Based Financing Partner

McKinsey predicts a whopping 3000% growth in subscription e-commerce by 2025. However, as businesses offer subscription-based payments, it can lead to cash flow challenges. In response to this growing demand, vendors seek solutions that allow payment flexibility without disrupting their sales processes, all while maintaining a steady cash flow.

Ratio Team
November 8, 2023

5 Ways B2B SaaS Can Accelerate ARR Growth

Gartner predicts a whopping $232 billion in global SaaS spending by 2024. Yet, only some SaaS firms consistently hit growth rates above 30-40%. How do they do this? It’s due to the 'Rule of 40'. This rule demonstrates that a SaaS firm's revenue growth and free cash flow margin, when combined, should at least be 40%. So, a company growing at 30% should show a 10% free cash flow margin.

Ratio Team
November 8, 2023

Optimizing Robotics-as-a-Service Models for Subscription Economy

The Robotics-as-a-Service (RaaS) model is set to reach a $4 billion market cap by 2028, attracting businesses seeking enhanced productivity and efficiency through robotic automation. As RaaS gains traction, robotics companies encounter two main challenges: identifying a suitable subscription model and arranging working capital with flexible, subscription-based payment plans to their customers.

Ratio Team
November 7, 2023

6 Red Flags to Watch for When Evaluating Recurring Revenue Financing Partners

The global revenue-based financing market size is projected to reach over $42MM by 2027. And why not? Recurring Revenue Financing (RRF) is, after all, a compelling alternative for businesses looking to secure quick growth capital without the drawbacks of traditional financing.

Ratio Team
October 20, 2023

Three Untapped Sources of Working Capital for Your SaaS Business

SaaS companies facing high burn rates and limited working capital should aim to target a 12- to 18-month runway to effectively manage their accelerated cash consumption. To maintain financial stability, businesses often turn to traditional funding options such as venture capital or loans, which can be fiercely competitive and come with strings attached.

Ratio Team
October 17, 2023

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