Timia Capital expands B2B tech lending capacity with funding from SAF Group
TIMIA CapitalCompany
Timia Capital secured a CAD$25 million (US$18.3 million) credit facility from private‑credit firm SAF Group on Aug. 27, 2026, expanding its lending capacity by CAD$60 million to serve larger B2B SaaS and software‑enabled companies.
Deal Terms
Timia Capital, the Toronto‑based lender that focuses on B2B technology firms, announced a CAD$25 million credit facility from Calgary‑based SAF Group. The facility lifts Timia’s total lending capacity by CAD$60 million, enabling it to originate larger loans for SaaS and software‑enabled companies that meet its criteria of $2 million‑$20 million in ARR and gross margins of 50 percent or higher. The financing is structured as a debt instrument; no equity component was disclosed.
Background
Founded in 2015, Timia has deployed more than $200 million in loans to 80 portfolio companies, including digital‑marketing startup Webware AI and telematics firm BrightOrder. In 2024, venture firm Round13 Capital acquired Timia to broaden its financing toolbox. The new credit line arrives as venture capital markets tighten, prompting tech founders to blend equity and debt to preserve ownership. Timia CEO Michael Wallace said the facility “allows us to support more of those founders with larger investments.”
The credit facility is part of a broader trend in Canadian private credit, where niche lenders such as Vistara Growth are also scaling to meet demand from high‑growth SaaS founders. By adding CAD$60 million of additional capacity, Timia can now fund larger rounds, potentially moving beyond its historic $2‑$20 million ARR sweet spot toward the upper end of the market.
Timia’s expanded capacity positions it to compete more aggressively for deals that might otherwise flow to larger U.S. specialty lenders. The partnership with SAF Group also diversifies Timia’s funding sources, reducing reliance on equity‑backed capital and giving it a more stable balance sheet for future loan commitments.
Overall, the financing underscores the growing appetite among private‑credit firms to back B2B SaaS growth, especially as equity markets become more selective.
Why It Matters
Timia’s enlarged loan book gives it the bandwidth to pursue larger, later‑stage SaaS borrowers that were previously out of reach, potentially shifting the competitive dynamics with peers such as Vistara Growth. Existing portfolio companies may see faster access to growth capital, reducing the need to tap public markets or high‑cost bridge financing.
For SAF Group, the deal deepens its exposure to the fast‑growing B2B SaaS segment, aligning its private‑credit strategy with a niche that offers high‑margin, recurring‑revenue collateral. The partnership also signals to other Canadian credit providers that the market for tech‑focused debt is scaling, prompting further fundraising and capacity builds.
Key Points
- Timia Capital received a CAD$25 million credit facility from SAF Group
- The facility expands Timia’s lending capacity by CAD$60 million
- Timia targets B2B SaaS firms with $2‑$20 million ARR and ≥50% gross margins
- Timia has originated over $200 million in loans to 80 companies since 2015
- The financing arrives amid tighter VC markets, prompting founders to blend equity and debt
Analysis
The CAD$25 million facility gives Timia Capital a runway to increase its average loan size, nudging its effective loan‑to‑value multiples higher than the typical early‑stage SaaS debt deals that hover around 1.5‑2.0x ARR. By adding CAD$60 million of capacity, Timia can now fund deals that approach the upper end of the $20 million ARR threshold, where valuation multiples tend to compress toward 5‑7x ARR for equity rounds. For investors, the move illustrates how private‑credit firms are pricing risk on SaaS cash‑flow profiles rather than growth velocity alone, a shift that could tighten spreads for lower‑margin borrowers.
From an operator perspective, the expanded credit line reduces reliance on equity dilution, a critical consideration as venture funding cycles lengthen. SaaS founders with solid gross margins can now secure larger, longer‑term debt tranches to fund product expansion, sales hires, or international rollout without surrendering board control. The deal also validates the emerging Canadian private‑credit ecosystem, suggesting that more niche lenders may follow suit, increasing competition for high‑quality SaaS borrowers and potentially driving down loan pricing.