We're incredibly excited to announce that Ratio has secured $411M to fuel the transformation of B2B financing.
Are you offering payment flexibility to your customers all on your own? It’s time to rethink. When you offer it on your own, you bear the burden of delayed payments, operational strain, and financial risk. However, when you offer payment flexibility with a B2B BNPL partner, you get upfront capital, streamlined operations, and reduced risk.
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Closing a B2B deal isn't a sprint—it's a marathon, often spanning three to six months to cross the finish line. B2B buyers meticulously scrutinize every detail to ensure they’re making a wise investment. For large enterprises, there is a complex approval chain for expensive purchases, whereas startups and SMBs battle budget limits. Despite your sales team's best efforts, deals can stall if prospects find better offers, or they may shift priorities if they can't afford the products at closing time.
A staggering 75% of companies find their customers contemplating alternatives during renewals, significantly impacting revenue and growth. But there's good news: churn is manageable. Customers explore alternatives driven by critical needs: cost-cutting in tight financial times, dissatisfaction with current services, and the hunt for innovation missing from their existing providers. Recognizing these motivations is crucial in addressing customer churn effectively.
With the average customer acquisition cost (CAC) for SaaS businesses ranging from $76 to $519 per customer, it has become a critical metric for SaaS entrepreneurs. Yet, many find themselves grappling with the challenge of balancing cost-effectiveness with sustainable growth. While conventional methods like optimizing marketing spend or refining targeting strategies may offer initial relief, relying solely on these approaches can inadvertently constrain scalability and inhibit long-term profitability.
In 2024, SaaS spending is skyrocketing, set to hit $243.99B, per Gartner. Leaders like Monday.com and Asana, channeling over 50% of revenue into sales and marketing, spotlight the need for sharp promotional tactics in a cutthroat market.
Lighter Capital stands out as a leading Revenue-Based Financing (RBF) solution, particularly for SaaS companies. Offering up to $4 million in financing, Lighter Capital is unique in that it doesn't require personal guarantees, covenants, or the surrender of equity and board seats.
SaaS businesses are always in the news for massive fundraising rounds and innovative product developments. However, beneath the surface, keeping SaaS businesses afloat isn’t always a smooth sail. And if you’re into B2B or enterprise SaaS, you’re sailing against the high winds all the time.
In Q3 2023, venture capital investment in fintech companies dropped 36% to $6 billion, a blow to B2B SaaS entrepreneurs amid tighter venture financing and stricter banking rules. The surge in subscription models further tightens cash flow. Businesses are adapting to diverse financing approaches.
SaaS businesses are booming, thanks to their flexible payment models that attract deals but result in smaller, steadier revenue streams. This often puts a strain on this industry as they wait for revenue to build up. Recurring Revenue Financing (RRF) offers a pivotal solution in this scenario.
Scaling a SaaS company calls for a fresh approach to financing. Traditional debt and equity financing might not be your best option. Debt financing often misaligns with the asset-light and rapid-growth nature of SaaS, and equity financing can dilute control. Recurring Revenue Financing (RRF) offers a flexible, founder-friendly alternative tailor-made for the SaaS business model.
