I was wondering if others on this forum have used debt funding to finance investments either in their Saas or elsewhere.
It seems that with the predictable nature of Saas revenue, low interest rate debt should be available for Saas apps with low churn and healthy profit margins.
For example, borrow at 6% on your Saas and invest in real estate at 12% cash on cash. So use your Saas as a vehicle for “good debt” to increase your portfolio more rapidly.
Has anybody gotten low interest rate long term bank loans for his Saas? This seems the only way to get reasonable interest rates, as dedicated Saas lines of credit like mentioned on http://www.saas-capital.com/funding-solutions/faqs/ want 10-12% interest rate with 1% annual point, which seems ridiculously overpriced to me.
Or am I missing a risk in Saas others see?