The Toronto company that is marketing a way for companies to bring forward revenue from digital signage SaaS deals is doing another webinar this Thursday on how the arrangement works.
The pitch from the SaaS Lending Group, which is part of Alliance Financing, is debt financing in the form of a term loan that gets tied to thew recurring revenue stream for a long-term software licensing deal. A lot of digital signage software deals are built around two and three year licensing agreements, in which the end-user pays month by month.
The idea behind this is that the software company or integrator can get six months of revenue at once, for working capital, instead of waiting for the monthly payment.
Dave Haynes is the founder and editor of Sixteen:Nine, an online publication that has followed the digital signage industry for some 14 years. Dave does strategic advisory consulting work for many end-users and vendors, and also writes for many of them. He’s based near Halifax, Nova Scotia, on Canada’s east coast.