Glossary of Terms

The electronic network for bank-to-bank money transfers used widely in US B2B payments

Explore the significance of ACV and its impact in SaaS.

An API allows software applications to communicate with each other.

The annualized cost of borrowing, expressed as a percentage, used to compare financing options

Money owed by customers, its role in cash flow, and how businesses manage and finance receivables

The average annual revenue per customer contract and why it matters for SaaS growth

Predictable subscription revenue and the primary growth metric for SaaS businesses

Short-term financing to cover immediate expenses until long-term solutions are available.

A financing model that lets customers pay over time while businesses get paid upfront

The record of company ownership showing who holds equity, at what percentage, and for how much

The net movement of money in and out of a business and the foundation of financial health

The process of turning outstanding invoices into cash through payment follow-ups

Sales software that automates product configuration, pricing rules, and quote generation

The percentage of prospects that complete a desired action, from trial signups to closed deals

Rules and restrictions lenders impose on borrowers as part of financing agreements

The risk that a borrower or customer will fail to meet their payment obligations

The average cost of acquiring a new customer and a key metric for sustainable growth

The percentage of customers who cancel and a critical metric for recurring revenue growth

The total revenue a customer generates over their lifetime and a core profitability metric

Software and processes used to manage customer data, sales pipelines, and relationships

Raising capital by borrowing money that must be repaid with interest over time

The reduction of ownership percentage caused by issuing new equity

The process of recovering failed or overdue payments through automated reminders

A widely used proxy for operating profitability that strips out financing and accounting effects

Integrated software systems that manage core business processes across finance, operations, and HR

Financial services integrated directly into non-financial products and workflows

Offering financing directly inside the purchase flow instead of through external lenders

Raising capital by selling ownership shares to investors

Revenue generated from existing customers through upsells, cross-sells, and usage growth

Selling unpaid invoices to get immediate cash instead of waiting for customers to pay

Technology-driven innovation in financial services, payments, lending, and banking

A pricing model that charges a single, fixed price regardless of usage or the number of users

The EU's comprehensive data privacy law governing how companies collect, process, and store personal data

The strategy for bringing a product to market, acquiring customers, and driving revenue

Revenue minus the direct cost of delivering it, expressed as a percentage and a core SaaS efficiency metric

Financing designed to fund expansion for companies that have proven their model but need capital to scale

The process of verifying customer identity to meet regulatory and anti-fraud requirements

Market penetration measures a product's market share, crucial for growth.

A form of short-term business financing based on future sales, repaid through a percentage of daily revenue

A billing model where payments are triggered by completing defined project milestones

The predictable subscription revenue a business generates each month

How existing customer revenue grows or shrinks after churn, downsells, and expansions

Cash generated from normal business operations, essential for assessing financial health.

The security standard that governs how companies handle and protect payment card data

The time it takes to recover customer acquisition cost through recurring revenue

The conditions that define when and how customers must pay invoices

A go-to-market strategy where the product itself drives user acquisition, conversion, and expansion

The end-to-end process of turning quotes into signed contracts, billed revenue, and collected cash

A measure of the financial return generated relative to the cost of an investment

An embedded B2B BNPL and quote-to-cash platform that helps sellers close faster and get paid upfront

Upfront capital for SaaS companies by turning recurring revenue contracts into immediate cash

When existing customers continue their subscription or contract for a new term

Aligning marketing, sales, and customer success to drive predictable revenue growth

A non-dilutive financing model repaid as a percentage of future revenue

Pricing model where costs adjust based on customer or contract risk

A SaaS benchmark stating that revenue growth rate plus profit margin should equal or exceed 40%

How long a company can continue operating at its current burn rate before running out of cash

The market segment of smaller businesses and a primary growth driver for scalable SaaS products

The end-to-end process from prospecting to closed deal and a key driver of revenue predictability

The full value of a customer contract over its entire term, including all fees and commitments

Pricing model where costs adjust based on customer or contract risk

Pricing model where costs adjust based on customer or contract risk

A consumption tax applied at each stage of production and a key compliance requirement for international businesses

A reseller that enhances a product with services, customization, or support

A pricing strategy that sets prices based on the perceived value delivered to the customer, not cost

A loan for venture-backed startups, often paired with warrants

Rights to purchase company shares at a fixed price in the future

The short-term capital available to run day-to-day business operations