Glossary
API

API

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

What does API mean?

An API, or Application Programming Interface, is a set of rules and tools that allows different software applications to communicate with each other, enabling data exchange and functionality sharing.

How can I use Capchase’s API?

The Capchase API makes it easy for businesses to embed Capchase functionality into other SaaS platforms and workflows, such as your CRM, CPQ, Accounting, or Billing system, for a more unified and automated experience across applications.

Vendors can also use the Capchase API to build flexible payments into their customized digital checkout experience.

Unmatched flexibility on how and where you use Capchase Pay

Capchase’s integrations make it seamless for your teams and customers to use.

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Explore Capchase’s API documentation and enable flexible payments in your own checkout.

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The Closing Motion Platform

Financing your sales stack can plug into.
Ratio integrates with your quote-to-cash workflow, so flexible payment terms fit natively into how you sell.
Or run your numbers first →

Sellers on Ratio see up to 30% higher close rates and 25% higher ACV.

Related Terms

Working Capital
The short-term capital available to run day-to-day business operations
Warrants
Rights to purchase company shares at a fixed price in the future
Venture Debt
A loan for venture-backed startups, often paired with warrants
Value-Based Pricing
A pricing strategy that sets prices based on the perceived value delivered to the customer, not cost
Value-Added Reseller (VAR)
A reseller that enhances a product with services, customization, or support
VAT (Value Added Tax)
A consumption tax applied at each stage of production and a key compliance requirement for international businesses
Upsell
Pricing model where costs adjust based on customer or contract risk
Underwriting
Pricing model where costs adjust based on customer or contract risk
TCV (Total Contract Value)
The full value of a customer contract over its entire term, including all fees and commitments
Sales Cycle
The end-to-end process from prospecting to closed deal and a key driver of revenue predictability
SMB (Small and Medium-Sized Business)
The market segment of smaller businesses and a primary growth driver for scalable SaaS products
Runway
How long a company can continue operating at its current burn rate before running out of cash
Rule of 40
A SaaS benchmark stating that revenue growth rate plus profit margin should equal or exceed 40%
Risk-Based Pricing
Pricing model where costs adjust based on customer or contract risk
Revenue-Based Financing (RBF)
A non-dilutive financing model repaid as a percentage of future revenue
Revenue Operations (RevOps)
Aligning marketing, sales, and customer success to drive predictable revenue growth
Renewals
When existing customers continue their subscription or contract for a new term
Ratio Trade
Upfront capital for SaaS companies by turning recurring revenue contracts into immediate cash
Ratio Boost
An embedded B2B BNPL and quote-to-cash platform that helps sellers close faster and get paid upfront
ROI (Return on Investment)
A measure of the financial return generated relative to the cost of an investment
Quote-to-Cash (Q2C)
The end-to-end process of turning quotes into signed contracts, billed revenue, and collected cash
Product-Led Growth (PLG)
A go-to-market strategy where the product itself drives user acquisition, conversion, and expansion
Payment Terms (Net Terms)
The conditions that define when and how customers must pay invoices
Payback Period (CAC Payback)
The time it takes to recover customer acquisition cost through recurring revenue
PCI-DSS
The security standard that governs how companies handle and protect payment card data
Operating Cash Flow
Cash generated from normal business operations, essential for assessing financial health.
Net Dollar Retention (NDR) / Net Revenue Retention (NRR)
How existing customer revenue grows or shrinks after churn, downsells, and expansions
Monthly Recurring Revenue (MRR)
The predictable subscription revenue a business generates each month
Milestone-Based Billing
A billing model where payments are triggered by completing defined project milestones
Merchant Cash Advance (MCA)
A form of short-term business financing based on future sales, repaid through a percentage of daily revenue
Market Penetration
Market penetration measures a product's market share, crucial for growth.
KYC (Know Your Customer)
The process of verifying customer identity to meet regulatory and anti-fraud requirements
Growth Capital
Financing designed to fund expansion for companies that have proven their model but need capital to scale
Gross Margin
Revenue minus the direct cost of delivering it, expressed as a percentage and a core SaaS efficiency metric
Go-to-Market (GTM)
The strategy for bringing a product to market, acquiring customers, and driving revenue
GDPR (General Data Protection Regulation)
The EU's comprehensive data privacy law governing how companies collect, process, and store personal data
Flat-Rate Pricing
A pricing model that charges a single, fixed price regardless of usage or the number of users
Fintech
Technology-driven innovation in financial services, payments, lending, and banking
Factoring (Invoice Factoring / Receivables Financing)
Selling unpaid invoices to get immediate cash instead of waiting for customers to pay
Expansion Revenue
Revenue generated from existing customers through upsells, cross-sells, and usage growth
Equity Financing
Raising capital by selling ownership shares to investors
Embedded Financing (Embedded Lending)
Offering financing directly inside the purchase flow instead of through external lenders
Embedded Finance
Financial services integrated directly into non-financial products and workflows
ERP (Enterprise Resource Planning)
Integrated software systems that manage core business processes across finance, operations, and HR
EBITDA
A widely used proxy for operating profitability that strips out financing and accounting effects
Dunning
The process of recovering failed or overdue payments through automated reminders
Dilution (Equity Dilution)
The reduction of ownership percentage caused by issuing new equity
Debt Financing
Raising capital by borrowing money that must be repaid with interest over time
Customer Relationship Management (CRM)
Software and processes used to manage customer data, sales pipelines, and relationships
Customer Lifetime Value (CLTV or LTV)
The total revenue a customer generates over their lifetime and a core profitability metric
Customer Churn (Churn Rate)
The percentage of customers who cancel and a critical metric for recurring revenue growth
Customer Acquisition Cost (CAC)
The average cost of acquiring a new customer and a key metric for sustainable growth
Credit Risk
The risk that a borrower or customer will fail to meet their payment obligations
Covenants (Restrictive Covenants in Financing)
Rules and restrictions lenders impose on borrowers as part of financing agreements
Conversion Rate
The percentage of prospects that complete a desired action, from trial signups to closed deals
Configure, Price, Quote (CPQ)
Sales software that automates product configuration, pricing rules, and quote generation
Collections
The process of turning outstanding invoices into cash through payment follow-ups
Cash Flow
The net movement of money in and out of a business and the foundation of financial health
Cap Table (Capitalization Table)
The record of company ownership showing who holds equity, at what percentage, and for how much
Buy Now, Pay Later (BNPL)
A financing model that lets customers pay over time while businesses get paid upfront
Bridge Financing
Short-term financing to cover immediate expenses until long-term solutions are available.
Annual Recurring Revenue (ARR)
Predictable subscription revenue and the primary growth metric for SaaS businesses
Annual Contract Value (ACV)
The average annual revenue per customer contract and why it matters for SaaS growth
Accounts Receivable (AR)
Money owed by customers, its role in cash flow, and how businesses manage and finance receivables
APR (Annual Percentage Rate)
The annualized cost of borrowing, expressed as a percentage, used to compare financing options
API
An API allows software applications to communicate with each other.
ACV
Explore the significance of ACV and its impact in SaaS.
ACH (Automated Clearing House)
The electronic network for bank-to-bank money transfers used widely in US B2B payments