Secret weapon for Tech companies to accelerate deals and improve cash flow

Have you ever lost a sale or been delayed because you required an annual payment up front? 

Although it has long been the norm in consumer purchasing, payment plans and Buy Now, Pay Later (BNPL) options are becoming more common in B2B. They allow you to make the sale and create predictable cash flow as those recurring payments come in. 

In fact, large enterprise software companies have been doing so via a number of financial vehicles that are not available to small businesses!

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Why Customers Love Payment Flexibility

‍Customers negotiate for discounts on a purchase by paying up front. And most SaaS vendors are ready to offer that. The SaaS vendors collect the annual subscription payment, provide access to their services, and renew each year or every 3-5 years depending on the contract term.

However many customers, especially in the current economic environment, may not have the cash on hand to pay up front, or they may simply prefer to preserve their cash or manage their cash flow more conservatively by spreading the payments out over time even though the overall cost may be higher. 

As a SaaS vendor you have your own cash flow requirements, hence why many SaaS companies are requiring annual upfront payment or are pushing for multi-year upfront payments.  

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Why SaaS Vendor Should Offer Payment Flexibility / Why Businesses Benefit from Payment Flexibility

When you offer payment plans and deferred payments, you can get the sales you may have lost or delayed if you only offered a one-size-fits-all payment option. You also reduce friction for the buyer when those payment options are baked into your sales process, rather than something that needs a manual review every time, with a dedicated solution like Ratio Boost for SaaS.

There are customers at every price point and for every potential payment plan. Payment flexibility makes sure you’re ready to serve all of them.