Expanding Financial Horizons: Eqvista Partners with 5th Line to Empower Founders with Non-Dilutive Capital Solutions

At Eqvista, we’re committed to empowering founders with the tools and resources they need to build sustainable, scalable businesses. While equity financing remains a cornerstone of startup growth, we recognize that today’s founders need access to diverse capital strategies that preserve ownership and extend runway.

That’s why we’re excited to announce our strategic partnership with 5th Line, a specialized debt advisory firm that helps growth-stage startups access non-dilutive financing solutions.

Why Non-Dilutive Capital Matters?

As your company scales, every equity round means giving up more ownership. For founders with strong revenue streams, predictable cash flows, or valuable assets, debt financing can be a powerful alternative that allows you to:

• Maintain control while accessing growth capital
• Extend runway without additional dilution
• Bridge funding gaps between equity rounds
• Scale operations with flexible capital structures

Through this partnership, Eqvista and 5th Line aim to make these non-equity funding options easier and more accessible. This will enable founders to choose solutions that fit their business without immediately giving away more control.

What 5th Line Brings to Our Ecosystem

5th Line specializes in connecting startups with the right debt solutions through their network of 300+ lenders. Their track record speaks for itself:

• $333M+ in closed debt deals
• 94% success rate on qualified mandates
• Under 4 weeks from intro to term sheet

Their expertise spans multiple debt categories including venture debt, revenue-based financing, accounts receivable facilities, and working capital solutions.

Is Debt Right for Your Startup?

Not every company is ready for debt financing, but you might be a strong candidate if you have:

• ≥$100K in monthly recurring revenue or steady revenue streams
• Gross margins of 40% or higher
• Accounts receivable or inventory assets that can serve as collateral
• Contracted revenue or purchase order backlog
• A preference for low-dilution growth capital

Anthropic, a large language model developer, raised $2.5B in debt to finance growth investments in 2025.  The loan was in the form of a revolving credit facility. Typical debt financing arrangements advise the customer to pay up the money in a fixed series of payment terms. A revolving credit facility has no such requirement. Moreover, the borrower may be able to draw more when the loan amount gets repaid. It was underwritten by Morgan Stanley, Barclay, Citibank, Goldman Sachs, JPMorgan, Royal Bank of Canada and Mitsubishi UFJ Financial Group.

The advantage of this revolving credit facility was that it granted Anthropic immense flexibility, to continue growing exponentially.

Real-World Use Cases

Here are some examples of how founders in our network have successfully leveraged debt financing:

For Inventory-Heavy Startups

A home fitness equipment company anticipated $2.5M in Q4 holiday sales but needed capital for upfront inventory purchases. They secured a $750K asset-based loan facility backed by their existing inventory and purchase orders totaling $1.2M. This financing enabled bulk purchasing at 25% reduced per-unit costs, improving their gross margins by 6 percentage points while preserving operating cash flow for day-to-day operations.

Digital-First Businesses

A SaaS startup generating $300K in monthly recurring revenue used their $180K accounts receivable balance to secure a $500K credit facility. They deployed this capital strategically for marketing spend, reducing their customer acquisition cost payback period from 9 months to 5 months. The result: 40% revenue growth over six months without any equity dilution.

Runway Extension 

A mobility tech company was burning $180K monthly after raising a $3M seed round. Instead of accepting a down-round, they closed on $2.16M in venture debt with a 12-month interest-only period. This additional runway allowed them to secure major partnerships, achieve 2.5x ARR growth, and ultimately raise a $6.5M Series A at double their previous valuation.

When Banks Say No?

A profitable B2B SaaS company with $250K MRR and 25% EBITDA margins was rejected by traditional banks due to limited hard assets and credit history. After working with 5th Line to refine their financial narrative and highlight predictable cash flow patterns, they secured $1.2M in revenue-based financing. This capital funded sales and customer success team expansion, growing their MRR to $400K within 12 months.

Seasonal Cash Flow Management 

A clothing startup earned 70% of their annual revenue between November and January, creating cash flow challenges from February through June. They established a $350K working capital line of credit in Q1 with 12-month repayment terms, using it to pre-order summer inventory and fund operations during slower months. This financing smoothed their cash flow cycles while maintaining 20% year-over-year growth.

How Does It Work?

The process is designed to be fast and founder-friendly. Through this partnership, Eqvista founders gain access to 5th Line’s comprehensive debt advisory services:

• Fast Financial Assessment: Get a quick, expert evaluation of whether debt financing makes sense for your business and which types might be the best fit.
• Curated Lender Access: Instead of navigating the complex lending landscape alone, tap into 5th Line’s network of 300+ active relationships across venture debt, revenue-based financing, AR facilities, and more. They act as your filter, not just another marketplace.
• Proven Track Record: 5th Line has facilitated over $333M in closed debt deals with a 94% success rate on qualified mandates, typically moving from introduction to term sheet in under 4 weeks.
• Flexible Support: Whether you want hands-on guidance through the entire process or just need strategic advice to navigate lenders yourself, 5th Line adapts to your preferences and timeline.

Who Benefits the Most from this Partnership?

Consider a consumer goods company generating steady monthly cash flow of $120K that needs $400K to stock inventory for seasonal demand. Traditional banks declined financing due to limited credit history. Through our founder-friendly financing options, they secured non-dilutive capital in less than 4 weeks, delivered large orders on time, and increased quarterly revenue by 45%—all while maintaining full ownership and control.

This partnership is especially valuable for businesses that:

• Have steady monthly revenue or strong sales orders
• Operate in industries with clear cash flow visibility
• Need capital for inventory or seasonal expenses
• Seek rapid growth without sacrificing ownership

Ready to Explore?

If you’re interested in exploring non-dilutive financing options, reach out to our team. We’ll help you determine if debt financing aligns with your growth strategy and connect you directly with 5th Line’s expertise.

This partnership represents our continued commitment to providing founders with comprehensive financial solutions that go beyond traditional equity structures. Whether you’re looking to extend runway, scale operations, or simply explore your options, we’re here to help you make informed capital decisions that support your long-term success. Take the Next Step Now!