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The Challenge: Using a CPQ but not seeing the expected boost in deal closure rates and velocity.
CPQ was meant to fix stalled deals. So why aren’t you closing more?
You’ve optimized pricing, automated quotes, and streamlined approvals. But deals still get stuck. Not because of the quoting process but because of what happens after the quote is sent.
❌ Buyers hesitate over large upfront costs.
❌ Buyers push for discounts just to get sign-off.
❌ Buyers get stuck waiting for external financing approvals.
The real roadblock? Cash arrangement. Even when the quote looks good, buyers struggle to secure financing, delaying the entire process.
So, how do you remove this friction and speed up the quote-to-cash cycle?
CPQ with Embedded Financing Accelerate SaaS Business–Here’s How
Embedded financing is the lubricant you need to keep deals moving and revenue flowing. Here’s how:
- Speeds Up SaaS Deals by Removing External Financing Bottlenecks
- Reduces Revenue Leakage Without Heavy Discounting
- Improves Cash Flow by Advancing Future Revenue
- Accelerates Deal Velocity With Automated Price Adjustments
- Increases Customer Lifetime Value (LTV) with Automated Renewals & Upsell
Let’s explore the impact in more detail.
1. Speeds Up SaaS Deals by Removing External Financing Bottlenecks
💡 The Problem:
High-ticket SaaS deals often require large upfront payments, but not every buyer has the budget to commit immediately. Many buyers turn to external financing to bridge the gap, but securing funding through traditional sources like banks such as the SBA 7(a) loan can take anywhere from 60 to 90 days. This lengthy and uncertain process delays approvals, often leading to stalled deals.
✅ How CPQ with Embedded Financing Solves This:
- Buyers get instant access to financing options within the quote, eliminating the need for external funding.
- Buyers don’t need to wait for financing approvals as opposed to external financing, reducing bottlenecks in funds arrangement and accelerating deal closures.
- SaaS sellers can decide whether to absorb the financing cost for high-value buyers, pass it to buyers who need flexible terms, or split it, ensuring every deal protects margins.
🚀 Ratio Advantage:
✔️ Ratio embeds financing into the quoting process (CPQ) → Buyers see and select payment plans instantly, without needing third-party loans.
✔️ Instant approval within minutes or seconds → Ratio provides real-time financing decisions at checkout, backed by a ~$411M funding pool to ensure sellers get paid upfront.
2. Reduces Revenue Leakage Without Heavy Discounting
💡 The Problem:
SaaS companies often rely on heavy discounting, we have seen B2B sales reps offer discounts as deep as 60% to close high-value deals.
While this may speed up sales in the short term, it shrinks margins, lowers long-term revenue potential, and sets a bad precedent for future renewals.
✅ How CPQ with Embedded Financing Solves This:
- Buyers can opt for high-value contracts by spreading payments over time, making bigger purchases manageable.
- Sales teams can close bigger deals without needing to discount to “make it work” for the buyer.
- Higher ACV (Annual Contract Value) and healthier margins without discounting
🚀 Ratio Advantage:
✔️ Multi-year contract flexibility - Lock in longer-term deals with structured payment plans instead of discounts.
✔️ Potential discount approval automation - Ratio enforces pre-set rules that only approve discounts for deals that align with strategic goals (e.g., enterprise clients, long-term contracts, or expansion opportunities).
3. Improves Cash Flow by Advancing Future Revenue
💡 The Problem:
SaaS companies struggle with cash flow gaps when offering flexible payment terms to buyers. While allowing buyers to pay over time makes SaaS solutions more accessible, it often leaves sellers waiting months to collect full revenue.
✅ How CPQ with Embedded Financing Solves This:
- Buyers get payment flexibility (B2B BNPL), but SaaS sellers still receive full contract value upfront.
- No more revenue unpredictability, cash flow stays healthy, even with extended payment terms.
🚀 Ratio Advantage:
Ratio advances the full contract value upfront to the SaaS seller, eliminating cash flow delays.
🔹 Example: A SaaS seller signs a $120K contract where the buyer pays $10K/month for 12 months. Instead of waiting, the seller gets a lump sum upfront (e.g., $100K minus Ratio’s fee), securing immediate cash flow.
✔️ Ratio evaluates a buyer’s creditworthiness using EIN-based business background checks, financial history, and risk modeling to determine financing eligibility instantly.
✔️ Best part yet, Ratio handles collections from buyers, so the SaaS sellers can confidently scale with cash-in-hand instead of cash-at-risk.
4. Accelerates Deal Velocity With Automated Price Adjustments
💡 The Problem:
Traditional CPQs rely on fixed pricing models that don’t adjust for financing terms, contract length, or buyer creditworthiness. This leads to slow approvals, rigid pricing structures, and lost deal momentum as sales teams wait for finance teams to manually approve pricing adjustments.
✅ How CPQ with Embedded Financing Powered by AI Solves This:
- AI-driven dynamic pricing automatically adjusts based on contract terms, risk levels, and financing options, eliminating manual price approvals.
- Instant financing approvals embedded inside CPQ allow sales teams to generate quotes with real-time payment options, speeding up negotiations.
🚀 Ratio Advantage:
✔️ Risk-based discounting, sellers can automatically offer better terms to creditworthy buyers while ensuring lower flexibility for higher-risk buyers.
5. Increases Customer Lifetime Value (LTV) with Automated Renewals & Upsell
💡 The Problem:
SaaS companies rely on existing customers for 70%+ of their revenue, yet renewals and upsells remain manual and inconsistent, leading to churn and missed revenue opportunities.
Sales teams often lose upsell chances because:
- Renewals aren’t automated, causing unnecessary friction and customer drop-offs.
- Upsells require new approvals, delaying expansion deals and reducing growth potential.
- Customers hesitate to upgrade due to budget concerns and stalling contract expansion.
✅ How CPQ with Embedded Financing Solves This:
- Automated renewals reduce churn and ensure contract continuity.
- Mid-term upsells allow reps to add services to existing contracts without requiring a new approval cycle.
- Helps sales teams lock in longer-term commitments with pre-approved financing options.
🚀 Ratio Advantage:
✔️Ratio automated renewals eliminate manual follow-ups, ensuring seamless contract continuity and reducing churn.
✔️ Ratio empowers SaaS sellers to extend financing for mid-term contract expansion if SaaS buyers need additional SaaS features, seats, or higher tiers.
By now, it’s clear that CPQ with embedded financing isn’t just a sales tool; it’s a growth engine. Less churn, more revenue, upfront cash - it all adds up. But here’s the thing: not all embedded financing solutions are created equal. Choosing the right partner isn’t just smart, it’s a definite win.
📢 Must read about five cash-advancing CPQ benefits before picking a CPQ software!
Why Ratio Boost’s CPQ with Embedded Financing Is the Smarter Investment for SaaS Growth
Ratio Boost, the only AI-powered CPQ & Billing platform that advances cash, eliminating financing barriers for your buyers while accelerating the quote-to-cash for you like never before.
And the benefits don’t stop there, you’ll get:
🔹 Real-time buyer tracking - Let sales teams see exactly where buyers drop off in the deal so they can step in before deals stall.
🔹 Full cash upfront, zero risk - SaaS sellers get paid immediately, while buyers pay over time - Ratio handles collections and absorbs default risk.
🔹 AI-driven deal execution - Ratio Co-Pilot (coming soon) delivers real-time pricing insights, deal probability scores, and next-best actions to maximize close rates.
💡 If your CPQ isn’t improving cash flow or helping you close more deals, it’s just another tool in your tech stack.
Invest in one that drives SaaS growth.
🚀 See how Ratio Boost makes every deal count. Request a Demo.
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