(October 16, 2025) Versant Funding LLC is pleased to announce that it has funded a $2.5 Million non-recourse factoring facility to a company that provides software and consulting services to major multinational companies.
The factoring company this business had relied upon for many years to meet its working capital needs refused to fund against invoices from a few key accounts. The resulting cash shortfall was reducing the company’s ability to service its customers.
“Versant focuses solely on the credit quality of our clients’ customers,” according to Chris Lehnes, Business Development Officer for Versant Funding, and originator of this financing opportunity. “Since the company’s key accounts were financially strong entities, we were willing to factor all their invoices, greatly improving the company’s cashflow and ability to meet customer expectations.”
About Versant Funding: Versant Funding’s custom Non-Recourse Factoring Facilities have been designed to fill a void in the market by focusing exclusively on the credit quality of a company’s accounts receivable. Versant Funding offers non-recourse factoring solutions to companies with B2B or B2G sales from $100,000 to $30 Million per month. All we care about is the credit quality of the A/R. To learn more contact: Chris Lehnes|203-664-1535 | chris@chrislehnes.com
Contact Factoring Specialist, Chris Lehnes
Read more: Press Release: Versant Funds $2.5 Million Factoring to SaaS CompanySoftware as a Service (SaaS): The Engine of the Modern Digital Economy
Software as a Service (SaaS) is, in the simplest terms, the delivery of software applications over the internet, on demand, and typically on a subscription basis.1 It represents a fundamental shift in how software is consumed, moving away from the traditional model of purchasing a perpetual license, installing the software on local servers or individual computers (on-premise), and managing all the associated infrastructure and maintenance.
Instead, with SaaS, the software vendor hosts the application and data on their own or a third-party cloud provider’s servers, and customers simply access it via a web browser or a dedicated mobile application.2 This paradigm shift has made software far more accessible, scalable, and cost-effective, fueling the digital transformation of businesses across every sector.
The Foundational Model and Key Characteristics
To understand why SaaS is so disruptive, one must look at its core technical and business characteristics.
1. Cloud-Native and Subscription-Based Access
The core characteristic of SaaS is that the software is hosted in the cloud and accessed via an internet connection.3 This eliminates the need for the customer to invest in servers, storage, or operating systems to run the application.4
- Remote Accessibility: Users can access the application from any device, anywhere in the world, so long as they have an internet connection, making it ideal for remote, hybrid, and global workforces.5
- Subscription Pricing: SaaS is overwhelmingly sold through a subscription model, usually billed monthly or annually.6 This changes software from a capital expense (a large one-time purchase, or CapEx) to an operating expense (predictable, ongoing cost, or OpEx), which is financially favorable for most businesses.7
2. Multi-Tenant Architecture
The technical backbone of most modern SaaS applications is the multi-tenant architecture.8 This is the key element that makes the model efficient and scalable.
In a multi-tenant environment, a single instance of the software application and its underlying infrastructure serves multiple customers (tenants).9 While all customers share the same application, their data and customizations are logically isolated and secured, preventing one customer from accessing another’s information.10
- Efficiency: Sharing a single code base and infrastructure across thousands of users dramatically lowers the cost for the vendor, which can then pass on savings to the customer.
- Automatic Updates: Since there is only one version of the software, the vendor can roll out updates, security patches, and new features instantly and simultaneously to all users without the customer having to lift a finger for manual installation.11
3. Vendor Responsibility
In the SaaS model, the provider manages the entire technology stack, taking the burden of IT management off the customer.12 This includes:
- Application Maintenance: Bug fixes, new feature releases, and version control.13
- Data Security and Backup: Implementing robust cybersecurity protocols, performing regular data backups, and ensuring compliance with regional data regulations.14
- Infrastructure Management: Managing the servers, networking, and operating systems necessary to run the application.15
The Benefits of the SaaS Model
The advantages of adopting SaaS solutions have driven their massive global proliferation, moving beyond just simple tools to mission-critical enterprise systems.
1. Reduced Cost and Predictability
The shift from CapEx to OpEx is perhaps the most significant benefit for small and medium-sized businesses.
- Lower Upfront Investment: There are no massive upfront license fees or hardware purchases.16 Businesses only pay the monthly subscription fee.17
- Cost Efficiency: Customers are not paying for server capacity they don’t use and can easily scale their subscription up or down based on current business needs.18
2. Rapid Deployment and Ease of Use
Implementing a new SaaS application can often be done in hours or days, not the months required for traditional on-premise software.19 Users simply log in via a web URL. This rapid deployment allows businesses to realize value almost instantly.20
3. Scalability and Performance
SaaS applications are built on scalable cloud infrastructure.21 If a customer needs to add 100 new users or dramatically increase their storage, the vendor handles the backend resource allocation seamlessly.22 The customer never has to worry about hitting an infrastructure bottleneck.
4. Continuous Innovation
In the on-premise world, major software updates (versions 1.0 to 2.0) often occurred years apart. With SaaS, the vendor constantly deploys minor, incremental updates and new features, ensuring the customer is always using the most advanced and secure version of the product.23
The “As-a-Service” Trilogy: SaaS vs. PaaS vs. IaaS
SaaS is the most customer-facing layer of the three main cloud service models, often referred to as the “As-a-Service” trilogy.24 The difference lies in how much of the technology stack the customer manages versus the cloud provider.
| Model | What is it? | Customer Manages | Provider Manages | Examples |
| SaaS | Software Application | Nothing (just the application’s data) | All of it: Application, Data, Runtime, Servers, Networking, etc. | Salesforce, Google Workspace, Microsoft 365, Zoom, Dropbox |
| PaaS | Platform for building/running apps | Application code and data | Operating System, Runtime, Middleware, Servers, Networking | Google App Engine, AWS Lambda, Heroku |
| IaaS | Infrastructure (virtual hardware) | Operating System, Applications, Data | Servers, Storage, Networking, Virtualization | Amazon Web Services (EC2), Microsoft Azure (VMs), Google Compute Engine |
SaaS is akin to a fully furnished, serviced apartment: you simply move in and use the appliances. PaaS is like renting the building structure and utilities, but you’re responsible for furnishing and decorating. IaaS is like renting the empty land and laying the foundation for a structure you’ll build and manage entirely yourself.
The Business of SaaS: Key Metrics
The subscription model of SaaS necessitates tracking a distinct set of financial and operational metrics, which are crucial for evaluating a company’s health and growth potential.25
- Monthly Recurring Revenue (MRR) / Annual Recurring Revenue (ARR): The lifeblood of a SaaS business. This is the predictable revenue the company expects to receive every month or year from its subscription base, excluding one-time fees.26
- Churn Rate: This is the rate at which customers or revenue is lost over a given period.27
- Customer Churn: The percentage of customers who cancel their subscription.
- Revenue Churn: The percentage of MRR/ARR lost due to cancellations or downgrades.28 A low churn rate (ideally under 2% monthly) is vital for long-term growth.
- Customer Lifetime Value (CLV or LTV): The total predicted revenue a business can expect from a single customer account over the entire period of their relationship.29
- Customer Acquisition Cost (CAC): The total sales and marketing spend required to acquire a new, paying customer.30
The financial goal for a healthy SaaS business is to have a CLV that significantly outweighs the CAC, typically a ratio of 3:1 or better, supported by a low churn rate.
Evolution and Future of SaaS
SaaS traces its roots back to the 1960s concept of time-sharing, but the modern model truly began with the founding of Salesforce.com in 1999, which popularized the delivery of enterprise applications entirely over the web via a multi-tenant architecture.31
Today, SaaS dominates major software categories, including:
- CRM (Customer Relationship Management): Salesforce, HubSpot32
- ERP (Enterprise Resource Planning): Oracle Cloud, SAP S/4HANA Cloud33
- Collaboration & Productivity: Google Workspace, Microsoft 365, Slack, Zoom34
- HR and Finance: Workday, QuickBooks Online
The future of SaaS is increasingly integrated with emerging technologies:
- Vertical SaaS: Applications tailored to specific, niche industries (e.g., software for dentists, gyms, or construction management) that combine software with industry-specific data and workflow.35
- Embedded AI/ML: Integrating Artificial Intelligence and Machine Learning directly into SaaS applications to automate tasks, provide predictive analytics, and enhance user experience without the user having to manage separate AI infrastructure.36
- Composable Architecture: Moving toward microservices that allow businesses to easily integrate and “compose” best-of-breed SaaS tools rather than relying on a single, monolithic suite.
In conclusion, Software as a Service is more than just a software delivery method; it is a business model and a technological philosophy that has democratized access to powerful computing tools.37 By transferring the complexity of IT management to the vendor and enabling a flexible, subscription-based financial structure, SaaS has become the essential foundation upon which the modern, globally distributed, and agile digital economy operates.
