Lighter Capital

4/5 stars

A revenue-based loan provider specifically focused on software companies with demonstrated ARR.

Pros

Focus: A focus on software startups means more favorable rates and some niche benefits
Fast Funding: Like other lenders in this category, you can get funded in days, rather than weeks.
Relatively large loans: Lighter advertises loans up to $4 million, higher than what we see from many competitors

Cons

Niche: If you’re not a SaaS company, this isn’t for you.
Cost: Like other lenders in this category, the total cost of the loan may be higher than what traditional lenders provide.

The Bottom Line

If you’re a quickly growing software-as-a-service (SaaS) company, Lighter Capital has your back.

This page may contain affiliate links. Our assessments are grounded solely in the product’s merits and performance.

Loan Types

Revenue Based Loan

Description: Fixed loan amount with payments as a percentage of revenue up to a cap.
Loan Amounts: Up to $4 million
Fees: Variable; defined as a set percentage of the loan amount.
Repayment: Variable. Terms of up to 3 years

Pricing information is retrieved from publicly accessible pricing materials. The actual cost may vary based on specific plans chosen. Always check directly with the seller for the final quote.

Pricing information last updated March 7, 2024.

Qualifications

Location: You operate in the US, Canada, or Australia
Annual Recurring Revenue: Minimum of $200,000 ARR from an “array of revenue sources”
Sector: Software, SaaS, tech services, or a related sector

Application Process

Provide basic information: an email, a phone number, your business name, and location.
Provide business information: Business type, monthly revenue range, number of customers, date founded.

Product Review

Let’s get this out of the way: Lighter Capital is for software companies. Specifically, they’re looking for software-as-a-service companies, although they’ll also accept tech services or related sectors. If that doesn’t describe you, move on: there are plenty of other options (like Forward) that don’t have this requirement.

Additionally, there’s a relatively high barrier to application: you need to demonstrate $200,000 in annual recurring revenue (ARR) from a diverse variety of sources.

In this way, Lighter Capital is pretty similar to many venture capital firms, which also tend to focus on software companies with scalable products. Lighter even offers some perks that are fairly similar to what you’ll get from a VC, including an online community, learning resources, and a variety of perks from groups like Silicon Valley Bank.

The platform’s exclusivity comes with other advantages, too. Lighter advertises higher loan limits (up to $4 million) than competitors, and they’ll accept contracts or other proof of incoming revenue if you’re just getting started.

It’s a pretty simple process to apply: just provide contact information, then describe your revenue sources. You should hear back pretty quickly.

What we love about Lighter Capital

Speed and Convenience: It’s a simple, two step process to qualify for an offer. If you qualify, you’ll be able to draw money within days.
Flexibility: Like with any revenue-based loan, you’ll pay back more when you’ve got lots of revenue and less when you’ve got a little.
Large loans: Lighter Capital advertises higher loan limits than most other products in this category; up to $4 million. Of course, this doesn’t mean your offer will look anything like that.

Best for: Medium-sized software companies that want an alternative to venture capital

Clearly, Lighter Capital isn’t for everyone. But if you meet their relatively stringent requirements, it might be a great choice. We actually wish that more lenders would be upfront about the types of businesses they like to fund; it makes for a more transparent process and, usually, a more favorable offer.

Of course, just like any revenue-based loan, you’ll want to do your homework before you take the loan. In general, the APR for a revenue-based loan is higher than you’ll get from a conventional loan, so don’t make the mistake of simply accepting their fee percentage without doing some quick arithmetic.