What is Capchase? How it works?

Curious About Capchase? Here’s What You Need to Know!”

Cash is one of the most luxurious words in the business world and an essential too. Any business to run smoothly and seamlessly needs cash. A business whether small or big can’t run on an empty pocket. 

Imagine yourself running a small business. And, the financial status of your business is in a shivering condition. Luckily, you’ve got an order from a customer and he owes to pay you later. But, you need the cash right away to keep your business on track. 

Here’s where Capchase can wound your business by providing financial stability. They will pay you upfront as a financial aid and when your customers pay you, you repay Capchase back. 

It’s similar to taking an advance on your salary. And then, when you receive your salary, the amount you have taken as an advance earlier will get deducted from your salary. 

Capchase : An Overview

Capchase is a New York-based Fintech company that aims to provide financial support for SaaS startups through a revenue-based funding model. 

Unlike, traditional way of getting funds from banks in the form of loans or from Venture capitalists, Capchase here comes with an alternative, i.e. revenue-based funding, that caters the unique needs and challenges faced by startups. 

You might have seen in the news that an ‘X’ startup has raised an ‘X’ amount of money from investors or venture capitalists which might sound easy and admirable. However, in reality, the process of raising money can be challenging and exhausting. 

Entrepreneurs willingly or unwillingly have to go through a lot of convincing, persuasion, negotiation, and discussion to obtain money from investors. And, even after going through this long mind-boggling drama, they might end up in an unsatisfactory deal such as dilution of equity or debt trap. 

Recognizing the problem associated with the traditional fundraising process from venture capitalists or loans, Capchase comes with a new way through which accessing the capital for SaaS startups has become easy and quick. And that too, without any dilution of equity or any burden of debt and collateral submission on startup. 

Why Capchase Matters?

Firstly, it has understood the core problems and challenges faced by SAAS startups in raising capital, especially in their early phase, and has accordingly designed a solution that meets their requirements without much hindrance. 

According to their official website

$2.5B+ in funding made available

This shows that they’ve made available more than 2.5 billion dollars in capital for its clients or partners.

Has served in almost 10 countries

This shows that Capchase has been able to deliver its service in different parts of the globe. 

90% Average increase in growth for customer’s

This data signifies that; their has clients experience 90% of growth in business on average after utilising their serv

5000+ partners and customers

It has more than 5000+ partners and customers who have used their services. This partner could be a business of any size, financial institution, or company relevant to the environment. 

How to Get Started with Capchase?

Well, if you’re willing to shake hands with Capchase then the process isn’t that rough. It’s similar to how you create an account on any social media platform just by filling in some basic details. The same is true here;

Firstly, you have to visit their official site

Once you land on their homepage, click on the Get Started button available at the top right corner. 

This will lead you to the next step where you can sign up and set up your Capchase profile by filling in some basic details such as 

Name, Gmail, contact no., business info, and so on. 

After finishing the setup process successfully, you then need to connect your business profile with Capchase which includes details like… 

• Business information

• Banking and Financial software you’re using. 

This helps Capchase in verifying and checking their clients eligibility. 

When you’re done providing your personal and business details, Capchase officials will then review your application, data, and stats. 

And based on that, they’ll decide whether you’re eligible to receive the funds or not. 

If you pass the eligibility criteria that they’ve set, Capchase will then make you an offer. 

This offer will include all the information such as, 

• How many funds will you receive or be eligible for? 

• Terms and conditions

• Fees and the necessary and relevant information about the agreement

And, if you found the offer useful, helpful, and satisfied then you can accept it, otherwise, simply reject it. Be sure to go through all agreement and contract details, and don’t be hurried or over-excited because of the funds you’re getting. 

After you accept the offer there will be some typical legal process like signing of contract just to make the deal more fair, safe, and transparent. 

So when all the necessary process is completed, the amount stated in the contract will get disbursed to you which you can then use in business expenses, growth or scaling, and marketing. 

Keep in mind that you have to repay the amount to Capchase according to the terms and conditions outlined in the contract. Typically from the future revenue that your business makes. 

Pros and Cons of Capchase

Pros:

It has made the process of accessing the fund more smooth and quicker and that too upfront. So businesses now can invest that capital in their growth. For any business owner, the shares or equity is the most valuable thing. Fortunately, with the capchase working model, business owners no longer have to dilute their equity for cash. 

Earlier, business owners were taking loans, or their financial situation was forcing them to take loans from traditional finance institutions that had high-interest rates. Now tell me who wants to be in debt? It sounds like a burden. 

With the innovative solution that Capchase has come up with, business owners can save themselves or their businesses from debt and collateral traps. It also offers financial flexible options based on the unique needs of each business.

Cons:

Of course, It has its predefined eligibility requirements that every business must fulfill to get access to funds. 

There’s no doubt that according to their working model, businesses will get quick and upfront access to the capital that they have requested. However, this also means that businesses will then have to allocate some portion of their future revenue to repay the capchase. 

According to the information given on their official website, they’re only providing their service to SaaS businesses. 

Capchase itself is a Business, so it will also have its terms and conditions or fees and change. This ensures the fair and transparent functioning of any business. 

So before signing any contract with any sort of business, be sure to go through all legal procedures. 

What do Customers say about Capchase?

Please note that this customer review is based on the data provided on their official website in the customer section. 

Most of the B2B businesses that have used the Capchse service have experienced a positive impact on their overall growth. 

They were happy with the flexibility, ease of terms, and their overall experience with Capchase. 

Customers who have used their service can achieve financial stability. Additionally, they have also seen an increase in their monthly as well as annual recurring revenue. 

Final Though of Mine

I know that money or initial financial support which small startup owners get, plays a crucial role in the growth and scale of their business. It aids in having sustainable cash flow. 

Additionally, it also helps in mitigating general expenses like employees’ salaries, buying required resources, and so on. 

I agree that raising funds is not an option but the need for the startup as competition in the business world is massive, each day new startups with new ideas are coming into the race. 

So I would only like to add that funds won’t guarantee growth and success; rather , it just acts as a support system in the business process. 

It’s your planning and strategies that will decide how your business will perform in the future. Whatever amount of funds you’re able to raise, spend it wisely, and don’t let your business or yourself get in any way obsessed or addicted to external financial support. 

Because a loan or investment from a VC might taste delicious in the mouth, unfortunately, it also comes with burdens like unhealthy debt traps, high-interest rates, hidden fees, collateral submission, or equity dilution.