Software Business Financing

LendSpark recently financed a small, high-growth software company that faced significant obstacles when its founder and owner had to step back from day-to-day management due to health issues. This unexpected sabbatical led to a decline in revenue, and the escalating medical bills adversely affected the owner’s assets and credit score. When the owner returned to lead the company full-time, he required an infusion of capital to increase inventory and hire new employees.

To address these challenges, LendSpark leveraged the experience of its executive team to conduct a comprehensive evaluation of the company’s business model and growth potential. The team concluded that the company’s existing customer base and underlying market potential made it feasible to develop a working capital loan structure that would facilitate company growth.

With LendSpark’s funding, the business was able to use the funds only when required, reducing financing costs and allowing for the purchase of the inventory necessary to support new customer deployments. The successful repayment of the debt has also enhanced the owner's and business's respective credit profiles.

Overall, LendSpark's transaction with the small software company has resulted in a positive outcome. By providing flexible financing that enabled the company to weather a challenging period and maintain its growth trajectory, LendSpark has helped to support the owner's recovery and the company's future success.