Cash Flow in a Pinch? Keep Your Business Moving
Line of Sight Capital
You lock in your capital access for up to 12-months.
Control Your Cost
Choose what invoices to finance & only pay for what you advance.
Own Your Reputation
Unlike other options, we don’t interfere with your customers.
Build To Bigger
Recognize more revenue and grow into longer-term capital with us.
THEY SAY IT BEST
B2B SaaS & Tech Companies
Recurring or Reoccurring Revenue
$1M+ in Annual Revenue
10%+ YoY Revenue Growth
Keep Contracts Moving with
Cover Your Payroll
Make sure your most mission critical asset is always covered.
Speed Up Vendor Payments
Scale the platforms your team needs sooner to keep growing the business.
Hire Headcount For Contracts
Get the people you need to support implementation and contract fulfillment.
Set-Up New Markets
Quickly finance the hard costs of setting up a new market.
Protect Your Brand & Your Business
Simple Pricing With Controllable Costs
Your Path to Unlock Flow Financing
1. Apply for Capital
Submit an application to set-up your pre-approved capital line.
2. Submit Invoices
Get capital in hand within 5 days of invoice submission.
3. Free & Clear
Easily clear the balance when you receive payment for your invoice.
Capital Made to Be Better
THE OTHER GUYS
Evaluating Funding Types?
Learn the critical questions you should be asking to make sure a type of capital is a good fit for your business.
TRUSTED BY 100+ COMPANIES
GET SMARTER ABOUT CAPITAL
The Basics of Working Capital
Current cash on-hand sets a baseline for projected funding and collections.
Your outstanding invoices and projected collections demonstrate ability to payback capital taken.
What your monthly expenses are impacts cash on-hand and should be controlled.
The holy grail of SaaS and the flip side of burn, the more runway you have, the easier it is to access funding.
Know what your trailing 12, 6, and 3 months of revenue are. This is different than ARR!
You don’t have to have a hockey stick, but the better your growth rate, the larger the facility available.
Those lingering debts can bring down total facility size, as new debt shouldn’t hurt the business.
Part of the SaaS Rule of 40, the typical SaaS company has a GPM between 70% – 95% and is critical for good cashflow.
Knowing Better, Growing Faster
Flow Financing™ is designed for B2B SaaS and Tech Founders with a minimum of 12 months of revenue history of at least $1M. You should be seeking to advance an invoice total of at least $100k, with a minimum draw amount of $25k.
Think of it as a solution to your working capital challenges. Although Flow can be useful for a lot of different B2B SaaS companies, it’s specifically designed for verticals that have consistent, but slow payers, leading to lumpy or seasonal cashflow and working capital shortages. This includes EdTech, GovTech, and HealthTech, among others selling into enterprise businesses.
Novel’s Flow Financing™ provides a 12-month working capital line that allows Founders to advance payment on outstanding invoices up to their pre-approved total amount. The minimum draw is $25k, and Founders may bundle multiple invoices to meet that threshold.
The cost is a simple 5% fee of the amount drawn. More specifically, Founders pay only 5% of the total amount due at days 30 and 60, before the remaining balance is due at day 90. There’s no additional fees or personal risk, and you can trade invoices for capital in-hand within as little as five days.
Flow Financing™ is perfect for when sales are on the rise but payments are slow, resulting in a buildup of invoices and cash flow constraints. It can also help when product implementation is prolonged, but additional staff is needed to support those implementations.
Some businesses – such as those in EdTech – may also have customers with reliable but extremely lengthy payment schedules, necessitating a bit of flexibility while they wait for invoices to come due. Finally, Flow Financing™ can be utilized to give the top of your funnel a boost, such as increasing ad spend or hosting a networking event for potential customers.
Factoring is a type of financing that provides capital to a company by purchasing their accounts receivable, minus a discount for commission and other fees. Unfortunately, these fees are not always transparent. Although they can be advertised as 1-5%, in the end, Founders can be left paying as much as 20% if they’re not careful. With Novel’s Flow Financing™, our fee is always a transparent 5% on the amount drawn. And unlike factoring, Flow Financing™ does not require customer involvement either, leaving your reputation – and your bank account – fully intact.
An MCA, or merchant cash advance, is a short-term loan that can involve a high interest rate – up to a 35% APR in some cases. In contrast, Novel’s Flow Financing™ comes with a simple 5% fee for capital drawn. Unlike MCAs, Flow Financing™ is not extractive, and it doesn’t create a cycle of business debt that can be hard to recover from. Additionally, MCAs can involve weekly or even daily payments, whereas Flow Financing™ only requires two affordable monthly payments, with balance due at 90 days.