Employment & Payment SaaS Company Closes $8.4M in 6 Months with Capchase

How one SaaS vendor increased valuation and closed $8.4M in new deals

Our customer is a SaaS vendor offering an all-in-one platform that provides solutions for freelancers, remote workers, and businesses aiming to manage international teams. Their services include global payment tools, employment solutions, contract & compliance tools, and work permits.

Founded in 2020, this company has revolutionized work payments and local employment experiences for remote workers and employers with payment tools that are purpose-built for the future of remote work.

With 80,000 users in 85+ countries, the company collaborates with local legal and accounting teams across the globe to ensure full legal compliance. Additionally, they offer global mobility assistance, which includes visa and work permit application support for professionals seeking work in different countries.

The challenge they faced

Prior to using Capchase, the accounts receivable (AR) team needed to invoice each customer every month and follow up accordingly to ensure AR remained low. The team also needed to adjust each monthly installment based on how currencies have fluctuated throughout the billing cycle.

With Capchase, the Vendor was able to unlock the full annual contract value (ACV) upfront, structure the customer payments as direct debits (pull payments, rather than push), and lock in the FX rate, creating stability and predictability in the payments the buyer can expect each month.

Capchase transformed what was first an unwieldy and fluctuating process into a predictable and scalable one that reduces the work required for all parties and provides stability in what amounts can be expected in a volatile FX environment.

The SaaS vendor was at risk of being forced to dilute its equity for the capital necessary to power growth. Instead, it turned to Capchase for non-dilutive funding first, which then evolved into a vendor financing program as it scaled its business.

4 benefits of delaying an equity raise

While many companies jump right into equity fundraising, there are many valid reasons to delay an equity raise instead:

Develop a strong foundation
Delaying an equity raise and not diluting ownership is a great way to ensure that the founder’s vision remains cohesive and clear.

Focus on development and market fit
Using alternatives to equity funding can give startups more time to do market fit research, customer base development, and product development.

Grow at a manageable pace
Investor expectations can lead to scaling demands that outpace product performance, availability, and support capabilities, which can be disastrous.

Prepare for negotiations
Companies that find the heart of their customer base, offer high value, and power growth on their own terms are in an advantageous position when it comes to negotiations with venture capital.

For this SaaS vendor, delaying an equity raise allowed them to fund growth with vendor financing, retain more ownership of their company, and provide their global customer base with a streamlined payment experience.

Closing $8.4M in 6 months with Capchase

Capchase allows the SaaS vendor to offer flexible payment terms to their customers with built-in financing. Integrating seamlessly into the checkout workflow, Capchase allows their customers to choose a payment schedule that works for them, while paying the SaaS vendor the full ACV upfront.

Since 2021, the SaaS vendor has used Capchase to secure non-dilutive funding in various forms. In the last six months alone, they have used Capchase to close over 150 deals totaling more than $8.4M in contract value.

Delegating collections to Capchase

When the SaaS vendor’s customers choose to pay with Capchase, the Capchase team manages billing and collections, which is a big win for the finance team, which used to face heavy burdens with that. They’d often have to send manual reminders and ultimately chase down their customers for payment.

Growing with vendor financing

Capchase helped this SaaS vendor save millions of dollars, if not more, by providing access to revenue through vendor financing. With revenue coming in upfront, the founders can maintain control and steward the company into the next stage of growth on their own terms. Successfully delaying an equity raise has allowed their leadership to scale the company, build and nurture a strong, loyal customer base, and develop product features their customers truly want.

Capchase continues to manage all the installment payment options, transactions, and collections for this SaaS vendor, freeing up their Finance team to focus on more important tasks, and their sellers can continue to offer flexible payment terms, through Capchase, to meet their customers where they are and win more business.

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Learn more about how you can easily get started with Capchase and vendor financing, here.

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