B2B BNPL helps SaaS and technology sellers get paid upfront while buyers pay over time. It reduces friction in sales, protects margins, and eliminates credit risk. This guide covers what B2B BNPL is, how it works, common pitfalls, provider comparisons, and how to embed it into your revenue stack.
Challenge: Why Do SaaS Deals Keep Slipping Late in the Cycle? Procurement slowdowns. Budget objections. Delayed approvals. Even great SaaS sales teams lose high-intent deals to timing friction and payment constraints. The business impact is real: 🔻 Delayed revenue recognition 📉 Missed quarterly targets 💸 Forecast volatility and uneven cash flow 🧩 Pipeline bloat from deals stuck in limbo Flexible payment terms help, but most solutions still leave sellers waiting to get paid and exposed to collection risk.
%20(2).png)
💡 Why B2B BNPL is suddenly on every SaaS leader's radar Flexible payment terms used to slow deals down. Now they help close them faster. Feels like a brain shock, right? But here’s the thing - SaaS sales teams want to: ✅ Close faster ✅ Preserve runway ✅ Avoid giving discounts B2B Buy Now Pay Later (BNPL) is solving all three and is, therefore, showing up in more sales cycles, from self-serve onboarding to six-figure contracts.
.png)
Challenge: Why Does Your SaaS Sales Process Feel Stuck? Sales reps spend just 30% of their time selling. The rest is lost to chasing approvals and tweaking quotes. Negotiations drag the sales cycles, demoralize the reps, and often lead to: ❌Lost deals ❌Unpredictable revenue ❌Cash flow problems The right CPQ simplifies quoting, streamlines approvals, aligns pricing with buyer expectations, and speeds up deal closures.
Software companies are doubling down on subscriptions and for a good reason. The SaaS subscription market is set to reach $1.75 trillion by 2034. It’s the perfect time to scale and close bigger deals. But let’s be honest: having more subscribers doesn't guarantee increased revenue if your subscription management isn't effective.
.png)
Billing mistakes don’t just hurt revenue. They hinder growth. 94% of B2B SaaS companies adjust pricing yearly, but most billing systems fail to align with new pricing. They cannot handle pricing changes, upgrades, and renewals without errors. This creates billing failures, revenue leakage, and customer churn.
.png)
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.
.png)
The Challenge: Can CPQ Help in Closing More Deals Faster? Sales reps spend just 30% of their time actually selling—the rest is lost to lead prioritization, data entry, and quote generation. CPQ (Configure, Price, Quote) software promises to fix this by automating quoting, approvals, and deal closures. But here’s the catch—most CPQs stop at quoting and pricing.
Clawing back commissions is like awarding a trophy—then snatching it away. A deal closes, a rep gets paid, but if the customer cancels, defaults, renegotiates, churns, or commits fraud, revenue drops, commissions are clawed back, and the sales team’s morale takes a hit. While 53% of SaaS companies use clawbacks to recover lost revenue, clawbacks are frustrating for the sales teams. Moreover, frequent clawbacks are a symptom of deeper inefficiencies in the sales processes.
.png)
The Challenge: Why B2B SaaS Deals Are Stalling B2B SaaS sales cycles have never been longer—49% of deals over $20K now take four months or more to close. Why? Buyers demand flexibility, proof, and seamless processes. If you’re still relying on traditional sales tactics, you’re falling behind. Deals that once closed in weeks now stretch into months as decision-makers scrutinize every purchase, prioritize immediate ROI, and expect more than just polished demos.
Think your cash burn is under control? Investors may not agree. In today’s market, efficiency is the new growth and SaaS CEOs who can’t prove it are being left behind. In fact, in a survey, 82% of investors highlighted efficiency as their top priority. Burn multiple has become the SaaS industry’s ultimate test of operational discipline. It’s not just about growing your ARR anymore—it’s about how much growth you deliver for every dollar spent.
.png)
What’s draining the cash flow from your SaaS business? It’s not just poor sales or runaway expenses—it’s the subscription model itself. Monthly plans keep your customers happy, but they leave you waiting far too long to collect the full value of a deal. Annual plans bring in cash faster, but only if you’re willing to slash prices with steep discounts—and even then, budget-conscious buyers might still walk away.
%20(1).png)
Discounting to overcome pricing objections and stretching payment terms to close deals—classic sales tactics, right? Every salesperson has relied on these at some point to hit targets. But here’s the problem: while these strategies might get deals across the finish line, they often come at a hidden cost to your business. Margins shrink, cash flow suffers, and you’re left dealing with collections headaches, the risk of client defaults, and the fallout from weak underwriting decisions.
.png)
Not all B2B BNPL providers are created equal. Some can take too long to approve a BNPL request. Others have AI-powered underwriting to give instant approvals. Some have clunky technology that slows down your sales. Others are so seamless they make B2B BNPL feel like B2C. Some can’t scale with your business as you grow. Others have deep pockets to support you every step of the way. Some do the bare minimum. Others are constantly innovating to give you actionable sales insights. Choosing the right B2B BNPL (Buy Now, Pay Later) provider isn’t easy.
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.
.png)
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.
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.
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.
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.
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.
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 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.
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.
The SaaS industry is worth approximately $195 billion, and the US SaaS industry is set to grow by over 2x by 2025. Conclusion? The SaaS market is on fire! But with that comes several challenges — lack of funding, poor product adoption, etc. — the reason why 90% of SaaS start-ups fail to achieve the desired level of success.
.png)
As a SaaS Value Added Reseller, you're no stranger to the financial challenges of the industry. Issues such as managing cash flow, tackling high costs of acquiring customers, and scaling effectively in a fiercely competitive market are all part of the job. The risk of vendor lock-in also affects your finances, highlighting the need for financial agility.
Fundraising stands as a pivotal element in company development, impacting growth, profitability, expansion, sustainability, financial autonomy, and mentorship. At the crossroads of these factors, two fundraising choices emerge: non-dilutive and dilutive funding. Equity financing, while attractive, comes with its set of complexities. Non-dilutive funding offers a potential solution for those seeking to sidestep its intricacies. This article delves into non-dilutive funding options, their pros and cons, and strategies for securing it for businesses.
Are you tired of chasing delayed payments and worrying about your company's cash flow? If so, you're not alone. 55% of all B2B invoiced sales are overdue in the United States at the moment, while an average 9% of all credit-based B2B sales are affected by bad debts. These figures highlight the urgent need for businesses to reconsider their approach to payments. Late B2B payments and increasing debt severely impact a company's financial health, jeopardizing its existence.
BCC Research reveals a striking growth in the Revenue-Based Financing (RBF) market: from $2.3 billion in 2022 to an anticipated $154 billion by 2030. This surge is hardly surprising, considering how revenue-based loans are revolutionizing the way businesses finance their expansion. These loans present a groundbreaking approach: repayment terms are linked to a business's recurring revenue.
Research shows that SaaS companies could boost their profits by 11% by increasing their prices only by a humble 1%. Yet, SaaS businesses often overlook effective pricing, with most companies investing just 6 hours in developing their pricing models. This will have to change.
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.
McKinsey predicts a whopping 3000% growth in subscription e-commerce by 2025. However, as businesses offer subscription-based payments, it can lead to cash flow challenges. In response to this growing demand, vendors seek solutions that allow payment flexibility without disrupting their sales processes, all while maintaining a steady cash flow.
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.
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.
SaaS companies facing high burn rates and limited working capital should aim to target a 12- to 18-month runway to effectively manage their accelerated cash consumption. To maintain financial stability, businesses often turn to traditional funding options such as venture capital or loans, which can be fiercely competitive and come with strings attached.
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.
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.
In the fast-paced startup finance arena, Venture Capital has traditionally reigned supreme—but not without strings like equity dilution and loss of control. In a telling shift, VC funding plummeted to $76 billion in Q1 2023, down 53%.
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.
.png)
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.
Capchase is a prominent Revenue-Based Financing (RBF) platform providing businesses with upfront capital based on recurring revenues. It converts predictable MRR into ARR, providing companies with fast, flexible funding upfront without debt or dilution.
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.
