Definition of Quote-to-Cash (Q2C)
Quote-to-Cash (Q2C) is the end-to-end business process that covers the entire sales lifecycle, from creating a quote for a customer to collecting the cash from the sale. It includes quoting, contract negotiation and signing, order fulfillment, billing, and payment collection.
How Quote-to-Cash Works
The Q2C process typically starts when a sales team generates a quote or proposal and negotiates terms with a customer. Once the deal is agreed upon and signed, the product or service is provisioned, an invoice is issued, and payment is collected. Multiple teams are involved, including sales, legal, finance, and operations, all contributing to moving a deal from agreement to cash.
Quote-to-Cash Explained for a General Audience
For a general audience, quote-to-cash is the journey from a customer saying “yes” to the company actually receiving the money. It begins with a price quote and ends when the payment hits the company’s bank account. In between are approvals, contracts, invoicing, and reminders to pay. Companies aim to make this journey as smooth and fast as possible so deals close quicker and cash arrives sooner.
Why Quote-to-Cash Is Important
A broken or slow Q2C process can delay revenue, create customer frustration, and strain cash flow. For example, a deal may be verbally agreed upon, but delays in generating contracts or invoices can push payment out by weeks or months. Optimizing Q2C reduces these delays and ensures revenue is realized efficiently.
Key Components of Quote-to-Cash
Quote-to-cash includes several interconnected sub-processes such as Configure-Price-Quote (CPQ), contract lifecycle management, order management, billing and invoicing, revenue recognition, and collections. When these systems are not integrated, errors and delays are common.
Quote-to-Cash in SaaS and B2B Sales
In SaaS and complex B2B sales, Q2C workflows can be particularly complex due to custom pricing, multi-year contracts, flexible payment terms, and compliance requirements. A well-integrated Q2C process ensures that what is sold by sales can be accurately billed and collected by finance without friction.
Quote-to-Cash in Ratio’s Context
Ratio positions its platform as a complete quote-to-cash solution with embedded financing. Ratio integrates quoting, e-signatures, underwriting, billing, and collections into a single workflow. Financing is embedded directly at the quote stage, allowing buyers to choose flexible payment options while sellers receive cash upfront.
How Ratio Improves the Q2C Process
By embedding underwriting and financing into the quoting process, Ratio removes the need for separate financing applications or delayed approvals. Once a deal is signed, billing schedules are automatically created and collections are handled by Ratio. This reduces internal handoffs, shortens sales cycles, and accelerates cash collection.
Why Quote-to-Cash Matters in a Glossary Context
Including Q2C in a glossary helps explain a foundational concept in B2B operations and revenue management. Understanding Q2C provides context for discussions about sales efficiency, cash flow, and the role of integrated platforms in scaling revenue.
Summary
Quote-to-Cash is the complete lifecycle of turning a signed deal into collected revenue. An efficient Q2C process ensures faster deal closure, quicker cash collection, and fewer operational bottlenecks. Ratio enhances Q2C by embedding financing, automating billing and collections, and aligning sales and finance workflows to accelerate growth and improve cash flow.
