Recurring Revenue Debt

Borrow against your
recurring revenue.

Debt capital for recurring-revenue, tech-enabled companies, structured around your ARR with no dilution, no board seats, and no loss of control.

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Facilities from $2M to $20M+ · Term sheet in ~1 week · United States & Canada

What It Is

Turn recurring revenue into debt, not dilution

Recurring revenue is one of the most valuable assets a tech-enabled business has, but most lenders can't see it. Banks want hard collateral. Factoring and asset-based lending want receivables or inventory. Neither fits a company whose value lives in predictable, contracted ARR.

Thalos Capital structures and places recurring revenue debt built specifically around that revenue stream, matched to your metrics and positioned to the capital sources that underwrite recurring-revenue businesses the way they actually work. From first conversation to term sheet in about a week, funding in weeks, not months.

The Structures

Pick the repayment that fits your stage

The right structure depends on your stage, your revenue, and how you want repayment to sit against growth. Both are non-dilutive, fixed-rate, and free of board seats or warrants.

Interest-Only · 2–3 yr term

Interest-Only Facility

For companies with the metrics to reach an exit or a priced round, needing capital for the final push. Payments stay light through the term, with a balloon repayment at the end.

Structure

$2M to $20M+ facility size
2 to 3 year term
Interest-only payments through the term
Balloon repayment at term end
Fixed interest rate, transparent structure
Follow-on funding as you grow, often within a week

Eligible Companies

$5M+ ARR
Recurring-revenue, tech-enabled business
Based in the U.S. or Canada
Proven product-market fit (10+ clients)
Gross margin above 50%
Low fixed costs, capital-efficient growth

Amortized · 3–6 yr term

Amortized Term Facility

For bootstrapped or lightly capitalized companies growing without dilution. Principal payments start low and ladder up each year, so capital works hardest in the early years.

Structure

3 to 6 year term
Principal ladders up as revenue grows
Fixed, predictable repayment schedule
Fixed interest rate, transparent structure

Eligible Companies

$2M–$20M ARR
Recurring-revenue, tech-enabled business
Based in the U.S. or Canada
Proven product-market fit (10+ clients)
Gross margin above 50%

What It Funds

What the capital is for

Sales & marketing expansion

Runway extension between raises

Acquisitions of IP, talent, or customers

Cap table cleanup & investor buyouts

Business model transitions

The push to cash-flow positive

Refinancing of existing debt

Position for an acquisition

When It Fits

Where recurring revenue debt makes sense

Grow valuation without dilution

Scale ARR on your own terms and reach your next milestone from a position of strength. Higher revenue today means a stronger multiple tomorrow.

Delay or de-risk an equity raise

Bridge to your next round and negotiate better terms when the market and your metrics are on your side, instead of raising under pressure.

Fund growth or acquisitions

Invest in sales, marketing, IP, talent, or a customer base, the moves that compound enterprise value, without handing over equity.

Retain control and ownership

Fixed-rate, transparent structure with no warrants, no board seats, and no harsh covenants. You keep control of the company you built.