ARR financing is debt capital advanced against your annual recurring revenue, with no equity given away. Lenders assess your ARR multiple, net revenue retention and growth trajectory rather than profitability or collateral.
The result: founders keep full ownership while accessing meaningful capital to accelerate growth.
The market has grown significantly, with analysts positioning it as a cost-effective alternative to equity raises. A typical facility advances an amount around one to one and a half times your ARR, so a business with strong recurring revenue can access substantial capital without giving away equity.
Key benefits for recurring revenue businesses:
- No dilution. You retain ownership and board control throughout.
- Faster access than traditional debt. No lengthy investor roadshows or negotiations.
Othrfund operates in this space as a provider of fast, non-dilutive ARR financing, connecting recurring revenue businesses with capital and delivering indicative terms within 48 hours.
How founders can access ARR financing step by step
Eligibility starts with your metrics. Lenders typically require high net revenue retention and low monthly churn, reflecting customer loyalty and revenue stability. Beyond that, expect scrutiny of your growth trajectory, customer concentration, and the predictability of your contracted revenue.
The application process, in order:
- Prepare clean financial data: ARR breakdown, MRR history, churn figures, and retention cohorts.
- Connect your accounting and revenue systems to allow lender analysis.
- Receive indicative terms based on your ARR multiple and underwriting criteria.
- Complete legal due diligence and finalise the loan agreement.
- Drawdown funds, often within days of signing.
Because ARR financing uses forecastable recurring revenue rather than EBITDA as the underwriting metric, pre-profitable SaaS businesses qualify where traditional lenders would decline them.
Othrfund gives founders faster access to ARR capital
Othrfund offers non-dilutive ARR financing with indicative terms in 48 hours, built specifically for recurring revenue businesses.
Connect your financial data once. Othrfund's technology and team analyse your ARR, retention and growth profile to deliver terms fast, without the red tape. Three products cover the main founder needs: Boost for upfront growth capital, Flex for a revolving capital facility that scales with revenue, and Connect for access to a curated lender network when a bespoke match is the right fit.
Founders who have used Othrfund report funding secured in days, not months, with no dilution and no loss of control. If your business generates predictable recurring revenue and you need capital to grow, apply now to see what you qualify for today.