The benefits of financing software and infrastructure spend can be significant for businesses of all sizes. For smaller companies with a limited balance sheet, financing can be a vital tool for preserving cash and ensuring that it has the resources it needs to continue operating. For larger businesses, financing can help manage significant one-time expenses in a way that doesn't strain the company's overall financial health. In either case, financing can be a flexible and powerful tool for businesses to manage their costs to best meet their needs.
How Does Financing SaaS Spend Work?
Financing SaaS spend provides businesses with the capital they need to cover the costs of their software and infrastructure contracts. This can be done through traditional methods, such as loans or lines of credit, but there are newer methods tailor-made for businesses buying SaaS solutions.
Gynger provides specialized financing options for businesses to cover their SaaS and infrastructure spend.
Our simple process involves the following steps:
- Review your annual software and infrastructure subscriptions to determine your annual spend with each, and the payment terms for each contract. Typically, your payment terms will be monthly, annual, or usage-based.
- Choose the expenses where you want to take advantage of an upfront payment discount. You can have different goals for each expense, but the larger your bill is, the greater benefit you’ll receive.
- Apply for financing from Gynger to get pre-approved in less than 10 minutes. Tell us which expenses you’d like to finance, select how you’d like to pay us back, and then we’ll pay your annual bill upfront on your behalf. You can choose between 3, 6, 9, or 12 month payment terms - whichever works best for your business.
Which Expenses Can Financing Help With?
You can use financing for any software or infrastructure vendor you use.
Here are some examples of expenses that businesses often finance with Gynger:
- Cloud providers (AWS, Google Cloud, Azure, etc.)
- Databases (Datadog, Snowflake, Looker, etc.)
- Developer tools (Github, GitLab, etc.)
- HR platforms (Greenhouse, Justworks, Lattice, etc.)
- Sales tools & CRM (Salesforce, Hubspot, Gong, Apollo, LinkedIn, etc.)
- Marketing tools (Braze, Klayvio, Attentive, Intercom, etc.)
Whether you start by determining which tools financing would provide the largest benefit, or you simply finance them all through Gynger, we can help!
Reasons to Finance Software and Infrastructure Contracts
There are many reasons why you might want to finance your software and infrastructure contracts. Maybe you're trying to preserve cash flow, or you want to take advantage of an upfront discount. Whatever the reason, financing can be a helpful tool for businesses of all sizes.
Keep reading to learn more about the key benefits:
Here are three key benefits of financing software spend:
1. Save money by accessing upfront payment discounts
Many software and infrastructure vendors offer monthly payment plans, but will give discounts of 10% to 50% if you pay annually upfront. However, many businesses lack the cash reserves to take advantage of these discounts, or simply prefer to pay monthly to maximize runway, thereby missing out on these massive discounts.
By financing your SaaS contracts, you can take advantage of these discounts without making large upfront payments to your vendors. By using a financing tool like Gynger, you can finance the cost of the software to spread the payments out over time while still still getting the benefits of paying annually. Because Gynger’s fee is usually lower than the upfront payment discount you receive from your vendors, a significant arbitrage opportunity exists. By using Gynger to finance your annual software and infrastructure bills, you keep the spread between our fee and your vendor’s discount, while still paying monthly to extend runway and preserve cash.
2. Improve cash flow by converting upfront bills to monthly
Some SaaS vendors require upfront payment, which can be a challenge for startups trying to maximize runway, or for large businesses midway through their budget cycle. By financing your software and infrastructure contracts with Gynger you can convert those upfront payments into monthly installments to help manage cash flow, reduce burn, and extend runway. This way you can prioritize using your cash to invest in growing your business, rather than paying large lump sum bills for software.
3. Streamline SaaS bills into a single monthly payment
On average, companies with <100 employees pay for 79 different SaaS tools, making it very challenging to manage these payments and accurately forecast their impact on cash flow. When you use Gynger, you can consolidate all of your SaaS payments into a single monthly payment from one dashboard. This way, you don't have to worry about missing a payment and can easily forecast what you’re paying for and when.
Financing SaaS Spend is a No-Brainer for any Growing Business
There is a catch-22 of growing your business: you need top-notch software and tools to improve and expand, but you also need to keep costs down. Don’t let the costs of infrastructure stand in the way of your business growth.
Use Gynger to:
- Relieve pressure on cash flow, availing cash for growth
- Streamline your accounts payable for easier management
- Minimize dilution by reducing the need to raise equity
- Take advantage of more significant discounts from vendors
Don’t let the costs of software and infrastructure be a roadblock to growing your business. Contact us for more details.