I'm not so sure about that. Tarsnap is a bootstrapped business with an actual viable product and paying customers, but I'd never go for this. Even if I needed a sudden burst of capital (which is unlikely, since costs tend to change smoothly in SaaS companies), why not wait a few months and pay out of the profits which accumulate in that time period? Or, for that matter, pay out of last year's profits (which are now in my personal account, but I can always invest them back into the company if needed)?
If I needed to make a one-time purchase of a million dollars of servers, this would make sense; but nobody does that these days. Costs are overwhelmingly recurring, and if you need to borrow money to pay your recurring costs, you're not going to have the income stream lenders want to see to repay a loan.
If I needed to make a one-time purchase of a million dollars of servers, this would make sense; but nobody does that these days. Costs are overwhelmingly recurring, and if you need to borrow money to pay your recurring costs, you're not going to have the income stream lenders want to see to repay a loan.