Five Fintech Solutions That Can Help SaaS Startups Win More Customers

This article was originally published on Forbes. You can read the original version here.

The economic downturn has hit businesses very hard. And economists say there's the threat of a global recession on the horizon.

To survive, many companies are being forced to keep a tight lid on their budgets and limit upfront cash payments for tools. So, SaaS vendors are considering adopting financial solutions that help accommodate their customers' financial difficulties. This is important, especially for small and medium SaaS companies that lack the advantages—a competitive moat and massive marketing and sales teams—big companies have that enable them to insist on annual and multiyear subscriptions.

Here, I’ll share innovative financial solutions that SaaS companies can use to attract and retain customers, some of which I've helped companies implement.

The Current Need for Fintech Solutions

Current adverse economic conditions have precipitated some reactions from customers, which could be mitigated with the adoption of fintech solutions. Some of these reactions include:

Increased Cost Consciousness Among Buyers

According to the results of a recent survey by the World Economic Forum (WEF), a global recession in 2023 is likely, leading to fear and uncertainty among customers. As a result, customers are compelled to reduce costs, including avoiding large upfront payments for tools.

Greater Competition For Customer Budgets

During adverse economic conditions, company budgets grow leaner. For instance, a marketing budget of $5,000 could shrink to just $1,000. But the competition for that smaller budget remains just as fierce, if not more.

Reduced Access For Companies To Traditional Financing

According to Crunchbase data, funding from VC firms shrunk by over 35% from 2021 to 2022. And due to inflation, banks now charge higher interest rates for loans. So, SaaS companies have fewer places to turn to access funding.

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Five Fintech Solutions For SaaS Companies

Now that’s out of the way, let's explore five creative financial solutions SaaS companies can use to help drive customer retention and acquisition.

1. B2B Buy Now Pay Later (BNPL)

Buy now pay later (BNPL) enables customers—particularly cash-constrained small- and medium-sized businesses—to make a partial payment upon purchase and settle the remaining balance in agreed-upon installments. This approach can reduce sales friction and price objections.

Furthermore, it reduces the need for offering discounts, as the initial costs become more manageable for the customer. Moreover, it can enhance the annual contract value (ACV), as customers may be willing to pay more to avoid the hassle of upfront payments.

Before offering BNPL, it's advisable to investigate the customers’ ability to pay (i.e., creditworthiness), willingness to pay and propensity for expansion. What are their profitability, cash flow and revenue growth? How likely are they to pay with more flexibility, and are they the type of customer likely to purchase additional products from you?

Sometimes, technology companies conduct evaluations in an ad-hoc manner due to a lack of resources. If you're unable to perform evaluations internally or prefer a programmatic and scientific approach, you could consider relying on a fintech company to do that.

Discover how B2B BNPL can boost sales and keep your enterprise clients happy—5 key benefits inside.

2. Reward-Based Payment System

Discounts are great. But considering the current economic climate, using them to drive sales isn't advisable. They make a hole in your balance sheet. And they lower lifetime value (LTV) by over 30% because customers attracted by a discount are more likely to churn, per the results of a recent study.

To solve this, consider rewarding customers for purchases with other things aside from discounts, like loyalty points. Customers can then redeem these points for rewards such as digital downloads or exclusive access to experiences and events.

3. Per-Feature Pricing Model

One way SaaS vendors can adapt to the economic downturn is to adopt a per-feature pricing model. This allows customers to pay only for the features they need and use.

This way, customers can derive maximum perceived value for the amount they pay. And they're less likely to ax your tool from their budget when cutting down their expenses. Additionally, customers looking for a tool that's a perfect fit for their needs are more likely to patronize you.

4. Flexible Payment Regimens

Most SaaS companies offer discounted annual and multiyear subscription terms to reduce customer churn, with sales teams incentivized to close multiyear contracts. However, demanding upfront payments for long-term contracts may be impractical due to cash constraints.

One solution is to adopt flexible payment regimens, allowing customers to make smaller installment payments based on their budget (e.g., monthly, quarterly, biannually or yearly). This approach can foster trust and empathy with customers while also helping make the product more affordable and potentially improving the sales closing ratio.

Want to see the difference flexible payments can make? Check out our guide on What Difference Does it Make to Offer Payment Flexibility With and Without a B2B BNPL Partner? to learn how you can drive better conversions and customer satisfaction.

5. Nondilutive Revenue Financing

One way to close long-term contracts without asking for an upfront cash payment is through nondilutive revenue financing. Nondilutive revenue financing allows customers to pay in installments while you receive the entire amount upfront from fintech companies.

The fintech company gives you the upfront cash minus the financing costs, takes on the risk and collects the installment payments from the customer after the deal is finalized. For the customers, this helps reduce their short-term spending. And on your end, it reduces the need to offer discounts while providing you with cash to meet financial obligations.

This method can be helpful for companies selling to small- and medium-sized businesses that have no way of assessing the risk. As a result, they can end up with high churn not because of product capabilities but because they sold to high-risk customers.

Innovative fintech solutions are redefining how SaaS companies overcome economic challenges and win customers. But to truly harness these strategies, you need a partner who simplifies implementation and drives results.

Adopt Fintech Solutions That Drive Results, Powered by Ratio Boost

Economic uncertainty and budget constraints are reshaping how SaaS businesses sell and scale. Customers want flexibility, and vendors need predictable cash flow. Ratio Boost bridges this gap with ease.

Imagine offering your customers the ability to pay monthly or quarterly without compromising your revenue stream. With Ratio Boost, you get paid upfront for annual or multi-year contracts while your customers enjoy manageable payment terms. It’s not just about closing deals—it’s about closing them faster, smarter, and with higher deal values.

Here’s how Ratio Boost has transformed businesses like yours:

Take it from a giant Fleet Management tech provider expanding into smaller logistics companies. By integrating Ratio Boost, they unlocked new markets while preserving their resources:

“Ratio allowed us to offer payment terms that our smaller customers could afford while keeping our balance sheet intact.”

The results?

• 61% boost in conversions.
• 250% increase in dollars closed.

Or consider HST, a SaaS company stuck in long sales cycles and discount traps. Ratio Boost helped them close deals faster and at full value:

“Our deal velocity improved by 60%, and we stopped cutting into profits just to close contracts.”

Why Choose Ratio Boost?

• Get Paid Upfront: You receive the full contract value while your customers pay on their terms.
• Retain Pricing Integrity: Say goodbye to discounts that eat into margins.
• Streamline Sales: AI-driven underwriting and CRM integration make financing frictionless.

Ratio Boost isn’t just about closing deals—it’s about building stronger relationships and driving sustainable growth.

See Ratio Boost in action by requesting a demo today!