The term “financing” tends to conjure up images of complex loans or lines of credit that involve high-interest rates and cumbersome terms that are associated with traditional bank financing. However, with alternative software financing, you can equip yourself with a unique financial tool that many startups are using to stay ahead.
Software financing is a specialized financing solution designed to help businesses acquire software and related services without requiring up-front payments. It allows companies to purchase the latest technology needed to stay competitive and remain on track with stable cash flow and a healthy bank account.
Here’s what you need to know about software financing and reasons to opt-in.
Financing Solutions for Software Purchases
Software subscriptions typically come in three payment types:
Vendors that offer multiple plans typically provide a discount for those who commit to an annual payment term and a longer contract all at once, especially when that means prepaying for usage upfront.
While upfront payment may be your vendor’s KPI, early-stage companies and SMBs don’t always have the luxury of allocating lump sums for annual subscriptions. You need a simple solution that’ll get you the software you need without breaking the bank.
Transform Software Subscriptions From Annual to Monthly Payments On Your Terms
Some software is only available through annual commitments. If you're a smaller company or a startup, an upfront payment requirement can be a non-starter. But with Gynger, you can change the game. Gynger is designed to transform the - sometimes massive - investment of capital needed for annual software purchases into manageable monthly payments, giving you access to the best tools for your tech stack with no barriers.
How? It's easy. Gynger pays your software vendor the full contract value upfront, and you pay us back later in the payment model that works for you. Gynger is putting the financial controls in your hands. This is just one of the many benefits of financing your software.
It's a simple solution that revolutionizes how businesses of all sizes choose the software they invest in. High costs don't have to put an otherwise affordable tool out of your league. You can afford to invest in more software that you need to scale your business without burning through your budget or fronting cash that could be better spent elsewhere.
Consolidate Your Software & Infrastructure Bills
No one likes an inbox full of bills. Gynger alleviates that headache by consolidating all of your software and infrastructure subscriptions into one simple dashboard. Think of it like a bird’s eye view of all your vendors.
Reduce the pains of billing and vendor management. With Gynger, you can see every upcoming payment due right from your dashboard and have Gynger pay each invoice in just a few clicks.
Take Control of Your Capital
With the ability to spread out a larger software purchase over a longer period of time, you expand your company’s ability to invest in the right tools needed to grow. There's no need to hold back on the best tools for your team because the upfront expense is too high. Instead, you can budget for the best tools, regardless of their payment terms, while preserving capital to invest in other areas of your business.
Save Money by Paying Your Vendors Upfront
Gynger can also be used to negotiate better deals and long-term software savings for your business. When you have a software financing tool, you can negotiate more effectively by offering to pay your vendors upfront in exchange for better prices or incentives.
If you are dealing with a software vendor who typically offers a monthly payment option, you can offer to pay your total annual commitment upfront in return for a discounted rate. This is an enticing offer for vendors that can unlock an average of 20-30% savings. At the same time, you can protect and manage your cash flow more effectively to accelerate growth and avoid overspending.
Even vendors that only offer annual subscriptions can be negotiated with.
Have long-term plans? Offer to book 2-3 years at once to lock in the best deal and spread that cost out in whatever payment schedule provides your team the best advantage.
How Does It Work?
When you use Gynger, you gain flexible payment terms on any software or infrastructure expense. By spreading out your payments, you improve cash flow and extend runway.
We charge a flat percentage fee of the loan principal. Our fees are typically lower than the discount you’ll get by negotiating with your vendor, which means you pocket the difference.
Accessing financing through Gynger is much easier than taking out a business loan or working with other traditional lenders. With Gynger, you can sign up and get underwritten in minutes. We don’t require personal guarantees, run personal credit checks, have usage commitments, or charge any setup fees.
When you use Gynger, it’s a win-win. Your vendor gets paid their annual fee upfront while you continue to manage your software payments on a cadence that works for you. And because Gynger doesn’t intervene between you and your vendor relationship, nothing changes on their end.
Can I Really Save Money?
Yes, you can save money by signing longer, more cost-effective contracts with your software vendors while financing the payment through Gynger.
Using Gynger, we have seen customers come away with an average of 20-30% savings when leveraging upfront payments as a negotiation tactic. In fact, we've seen the vendor discount go as high as 50% in several cases!
Software Financing With Gynger Accelerates Growth
Whether you are running a startup with available capital or are a growing business in need of better software solutions to facilitate that growth, Gynger is here to help. Gynger spreads your payments for all of your software vendors, allowing you to carefully calculate your cash flow, manage cash burn, and optimize your runway.
With Gynger, you don’t have to make tradeoffs in your tech stack due to prohibitive upfront costs. Sign up today to see how you can accelerate your company's growth and save money by financing your software and infrastructure spend.