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Steve Benson

๐Ÿ‘ค Speaker
518 total appearances

Appearances Over Time

Podcast Appearances

SaaS Interviews with CEOs, Startups, Founders
How I hit $5m ARR, kept control using 3 different debt providers

That's like the perfect thing to do with debt.

SaaS Interviews with CEOs, Startups, Founders
How I hit $5m ARR, kept control using 3 different debt providers

What I've always done is I've basically had five extra engineers because I've had this debt.

SaaS Interviews with CEOs, Startups, Founders
How I hit $5m ARR, kept control using 3 different debt providers

And I've had them for, since 2015, right?

SaaS Interviews with CEOs, Startups, Founders
How I hit $5m ARR, kept control using 3 different debt providers

The team's always been five extra engineers bigger because of debt.

SaaS Interviews with CEOs, Startups, Founders
How I hit $5m ARR, kept control using 3 different debt providers

So, you know, and frankly, you know, early on I would have had, I had seven engineers instead of two, so it was super material.

SaaS Interviews with CEOs, Startups, Founders
How I hit $5m ARR, kept control using 3 different debt providers

Now it's less of a big deal, but engineers is actually still a big deal.

SaaS Interviews with CEOs, Startups, Founders
How I hit $5m ARR, kept control using 3 different debt providers

You get a lot more done.

SaaS Interviews with CEOs, Startups, Founders
How I hit $5m ARR, kept control using 3 different debt providers

So even today, you know, this stuff is super useful.

SaaS Interviews with CEOs, Startups, Founders
How I hit $5m ARR, kept control using 3 different debt providers

Um, so the terms on the scale works deal was a four year deal, 17% APR.

SaaS Interviews with CEOs, Startups, Founders
How I hit $5m ARR, kept control using 3 different debt providers

So a little better still for a year.

SaaS Interviews with CEOs, Startups, Founders
How I hit $5m ARR, kept control using 3 different debt providers

We should talk about terms as well.

SaaS Interviews with CEOs, Startups, Founders
How I hit $5m ARR, kept control using 3 different debt providers

The problem with a shorter term loan is it creates a ton of risk because

SaaS Interviews with CEOs, Startups, Founders
How I hit $5m ARR, kept control using 3 different debt providers

They don't in a lot of the debt providers that make loans to SAS companies want to do like a year or 18 months super risky because I mean, especially right now as we're seeing like the finance markets not stable, right?

SaaS Interviews with CEOs, Startups, Founders
How I hit $5m ARR, kept control using 3 different debt providers

Like you can you can very easily run into a circumstance where the interest rates are going up and they don't want to do another deal or think they feel things get risky.

SaaS Interviews with CEOs, Startups, Founders
How I hit $5m ARR, kept control using 3 different debt providers

If you're if you're counting on that money because you've made a longer-term investment and almost all the investments we're going to make or at least

SaaS Interviews with CEOs, Startups, Founders
How I hit $5m ARR, kept control using 3 different debt providers

a year and a half, two years payback.

SaaS Interviews with CEOs, Startups, Founders
How I hit $5m ARR, kept control using 3 different debt providers

And you need a time horizon longer than your actual payback or else you're basically just putting the money back in that you borrowed, right?

SaaS Interviews with CEOs, Startups, Founders
How I hit $5m ARR, kept control using 3 different debt providers

You need time.

SaaS Interviews with CEOs, Startups, Founders
How I hit $5m ARR, kept control using 3 different debt providers

All our costs are, for the most part, monthly costs.

SaaS Interviews with CEOs, Startups, Founders
How I hit $5m ARR, kept control using 3 different debt providers

And so you need to take the money in,