FreeAgent, a cloud accountancy firm has gained $5m in debt finance in order to bankroll their nationwide marketing campaign.
SaaS Capital, who formed in 2012, provided FreeAgent with the capital. The lending firm specialise in providing “debt-based growth capital”
FreeAgent, who are based in Edinburgh, work extensively with freelancers and small businesses, providing them with simplified accounting software, making it easier for SMEs to run their businesses.
The money is planned to increase the rate of customer acquisition, which is beneficial as only half of the UK’s small businesses use cloud-based financial services.
This is not the first major financial story concerning cloud-based accounting software. In 2013, Kashflow was bought for £20m by Iris, one of the largest accountancy solution firms in the UK.
‘‘We have historically raised equity and also used some venture debt, but we found the SaaS Capital solution to be a great way to finance our growth compared to those options,’’ said FreeAgent co-founder and CEO Ed Molyneux.