Steve Benson
speaker
874 appearances
4 recordings
1 series
first heard Mar 2020
last heard Dec 2023
Steve Benson’s voice in public audio — every appearance, attributed to the second.
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Appearances
Top Founders · How I hit $5m ARR, kept control using 3 different debt providers · 21 Oct 2022
podcast
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.
Now it's less of a big deal, but engineers is actually still a big deal.
You get a lot more done.
So even today, you know, this stuff is super useful.
Um, so the terms on the scale works deal was a four year deal, 17% APR.
So a little better still for a year.
We should talk about terms as well.
The problem with a shorter term loan is it creates a ton of risk because
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?
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.
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
a year and a half, two years payback.
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?
You need time.
All our costs are, for the most part, monthly costs.
And so you need to take the money in,
spend the money over a year year and a half and then get value out of it create more revenue your MRR goes up and then you're paying back the loan for the next you know two and a half years with that increased MRR and if you came out ahead it was a good idea to take the debt if you come up behind it was a bad idea but if in a fast-growing SaaS company it's always a good idea our our our
our returns way higher.
So you, it's, it's always basically even, even fairly expensive debt is always a really good deal because if you're, if your return on that capital is 50% or 60% and it costs 16%, you're way, way ahead.
Well, like I said, it's not, it's not the, I mean, the perfect place would be like ads or something that where you get a quick payback.
Showing 561–580 of 874 · page 29 of 44
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