Ross Simon (BidFin)
Australian-based fintech provider BidFin has launched a $0 payments for six months deferral initiative for any technology and related services spend.
This means customers can digitally transform today and only realise the cash impact of that in 2023 and beyond.
“This will assist many vendors and managed service providers (MSPs) unlock ‘stalled pipeline’ by providing customers with the liquidity they need today to access mission-critical technology, while only needing to pay back in the new calendar year,” BidFin CEO Ross Simon said.
“BidFin’s mission is to change the technology purchasing experience and be the go-to software payment solution partner for businesses by empowering customers to enter into technology agreements at a low cost of entry to facilitate digital transformation.”
The new initiative is in addition to a recurring revenue funding solution that was launched in March this year.
With the ability to access capital upfront via BidFin’s solution, MSPs and independent software vendors (ISVs) can experience increased revenue growth by being able to bring on more customers at scale and avoid the need to consider dilutive and unnecessary merger and capital raising activity, Simon said.
“MSPs and ISVs often run into scale challenges as a result of incurring significant upfront costs coupled with a go-to-market offering that means they can only bill and collect revenue from end customers monthly over time,” he added.
“BidFin’s offering solves for this mismatch in cashflow by recognising these future monthly recurring receivables as an asset class and prefunding up to 90 per cent of the annual contract value, upfront."
Simon explained BidFin’s flexible financial services products in the Australian market work to empower the entire channel and ecosystem.
Recognising that all suppliers and customer requirements differ, it has developed a specialist, customer-centric product set.
This is underpinned by a flexible sales approach offering extended payment terms for distributors; delivering monthly payment plans to end users; and providing vendors with direct access to its funding platform, which lets them pass on monthly payments to end users while still being recognised upfront and on time.
Subscription-based licensing for software and services is driving opportunities for organisations to transform, Simon explained.
“Funding post-pandemic through traditional lines has been a bit scarce as traditional lenders have uncertainty around what a future recession might look like and the impact that may have on customers,” he said.
“Some fintechs have also struggled to raise equity capital in the current environment to be able to scale their lending portfolios and their lending books. Vendors are also under pressure because customers' affordability has tightened.
“BidFin’s unique selling point is its capacity to facilitate software and services transactions where traditional lenders have been challenged.”
Simon explained BidFin was unlocking opportunities for partners through the ability to offer customers flexible payments in a tighter controlled environment. This is down to BidFin’s access to deep liquidity sources and making the transition to a lending model itself, which means it doesn’t rely on third-party financiers.
“With BidFin, partners are able to continue to drive sales, increase sales size, reduce discounts on their deals, increase deal flows, and differentiate by being able to offer a flexible payment offering in their sales cycle due to the strength of BidFin’s lending model,” he said.
“There has also been a reluctance from traditional funders to recognise and fund software and services as an asset class.
“BidFin views the software as perhaps even more mission-critical in powering organisations than the underlying hardware that it sits on, which is contrary to most traditional lenders that fund the device - and not the software."
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