Extended Payback Periods & Why Sellers Need To Offer This in 2024

If you have been in business long enough, you know cash flow is the king. Still, for SaaS businesses, payment overdue is a constant itch. But, if you look at it, it's the 'payback period' that you offer your customers that's the actual problem.

While sellers have a fixed repayment window with their set of payment options, most of the time it doesn’t match with what your customers want. Therefore, because of this difference in preferences, a pile of payback extension period requests reach your office. Well, there is a solution to this and in this blog we’ll explore the ultimate solution to your problem which is a win-win for both your business and your users.

Why the 30 day payback period won’t make the cut in 2024?

During our internal research we noticed that many sellers trap about 8 to 13% of their capital budget in payment chasing to offer different kinds of discounts in order to reduce payment overdues and churn. It feels like giving something to your friend in need but not getting that back on time or worse never getting it back ever even when that thing is yours. Doesn’t feel good at all, we know!

Calendars change and with every passing year, the expectation of your customers also changes. Businesses now want more payment flexibility to improve their cash flow and plan their operations better. Therefore, the 30 day payback period is not sufficient for them thus causing you to get stuck in the vicious cycle of constant payment chasing.

But does that mean you have to suffer from payment overdues? Not at all

Introducing Net 90: Buy Now Pay 3 Months Later for your users

Imagine offering your customers the flexibility to buy now and pay 3 months later. A total of 90 days credit period, sounds impossible right? Well, the best part is it comes at zero cost. Net 90 is not just another payment solution, it focuses on solving problems for both you and your users. This relieves you from the need of constant payment follow ups and your users get an extra time period to manage their cash flow better. This offering will help you build good buyer seller relationships with your users thus building trust and reducing churn.

How does SaaSPay Helps sellers with Net 90?

Now that we know about Net 90, Let’s look at a brief overview of how it works.

3 month no cost buy now pay later to customers: offering this at checkout will give more confidence and trust to your users and reduce their decision making time as well thus helping you to crack the deals faster.

- Paying for January invoice in April: It is just like going on that dream vacay now but paying for it 3 months later, it actually feels the same. This move helps to ease your users’ working capital cycle. In turn, they pay you on time, thus reducing churn.

- No more follow ups required: By offering Net 90 as a solution, you end up freeing your team’s bandwidth. They can now work on more significant goals for the organization.

Conclusion

In conclusion, it is very important for businesses to take care of their users' requirements while protecting theirs as well. Therefore, giving them the liberty of extended credit period would result in less to zero payment follow ups, no payment period extension requests and lesser churn. Flexible payment solutions like Net 90 is the ultimate solution to build trust and reduce payment overdues by a significant number.

To know more about Net 90 and how it can help your business, book a meeting to connect with our SaaSPay experts.