Finance

5 Ways B2B SaaS Can Accelerate ARR Growth

Gartner predicts a whopping $232 billion in global SaaS spending by 2024. Yet, only some SaaS firms consistently hit growth rates above 30-40%. How do they do this? It’s due to the 'Rule of 40'. This rule demonstrates that a SaaS firm's revenue growth and free cash flow margin, when combined, should at least be 40%. So, a company growing at 30% should show a 10% free cash flow margin.

Ratio Team
November 8, 2023

Optimizing Robotics-as-a-Service Models for Subscription Economy

The Robotics-as-a-Service (RaaS) model is set to reach a $4 billion market cap by 2028, attracting businesses seeking enhanced productivity and efficiency through robotic automation. As RaaS gains traction, robotics companies encounter two main challenges: identifying a suitable subscription model and arranging working capital with flexible, subscription-based payment plans to their customers.

Ratio Team
November 7, 2023

6 Red Flags to Watch for When Evaluating Recurring Revenue Financing Partners

The global revenue-based financing market size is projected to reach over $42MM by 2027. And why not? Recurring Revenue Financing (RRF) is, after all, a compelling alternative for businesses looking to secure quick growth capital without the drawbacks of traditional financing.

Ratio Team
October 20, 2023

SaaS Payments Are Evolving. Here’s What That Means for Your Financial Forecasts

With the global economic outlook growing gloomier, enterprises are looking to tighten their belts. Forecasting is a vital capability for today’s SaaS companies. Reliable and up-to-date data is essential if SaaS leaders are to make smart decisions, drive enduring growth, and win over investors.

Ashish Srimal
October 5, 2023

B2B Payment Flexibility: 5 Common Mistakes to Avoid for a Successful Implementation

In today's dynamic B2B financial landscape, offering flexible payment options isn't just a convenience—it's a necessity. The reason is the surging demand for subscription-based payments. However, while offering payment flexibility opens doors to improved client relationships and cash flow management, it isn't without challenges. A mishap in introducing or managing these flexible payment solutions can potentially eat into as much as 10% of a business’s monthly revenue.

Ratio Team
October 5, 2023

Pros and Cons of Venture Capital: Is it Right for Your Startup?

Venture Capital (V.C.) in the U.S. continues to surge in 2023, with projections nearing $70 billion. This presents a prime opportunity for early-stage ventures aiming to scale and thrive.However, the landscape is fraught with challenges. Less than 1% of small U.S. businesses manage to secure V.C. backing, and 25% are still looking for additional funds. For entrepreneurs, it's a path of both opportunities and obstacles.

Ratio Team
September 20, 2023

Comparing B2B BNPL Providers: What to Look for and Why It Matters

As e-commerce flourishes, B2B Buy Now, Pay Later (BNPL) isn't just trending; it's transforming how major merchants operate. A 2022 McKinsey report noted that a solid 65% of B2B companies are now all-in on online sales. Taking cues from the B2C world, the surge in B2B BNPL services is evident.

Ratio Team
September 1, 2023

Exploring Pipe Competitors and Alternatives: An In-Depth Analysis

In this post, we'll break down top-notch competitors to Pipe, including Ratio, Founderpath, and Liberis. From standout features to pricing, we've got you covered.

Ratio Team
August 25, 2023

Managing Core SaaS Metrics is Getting Harder: Here’s the Solution

The days of rudimentary monthly cash flow and profit / loss calculations are long gone, with recurring revenue, customer acquisition costs, churn rates, and other SaaS-specific financial metrics now the basis of make-or-break strategic decisions.

Ashish Srimal
August 14, 2023

3 Top Revenue-Based Financing Solutions in the USA

The US is home to over 32 Revenue-Based Financing (RBF) companies collectively managing 57+ distinct funds totaling more than $4.31 billion in capital. This growth is driven mainly by the demand for subscription-based payments.

Ratio Team
August 9, 2023