Why SaaS Companies Are Now Offering Net Payment Terms cover art

Why SaaS Companies Are Now Offering Net Payment Terms

Why SaaS Companies Are Now Offering Net Payment Terms

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In this episode, Lucas and Luna examine a quiet but powerful shift in SaaS billing: net payment terms. For decades, SaaS companies demanded upfront credit card payments. Now, a growing number of B2B SaaS firms — from $10 million ARR startups to public companies like Salesforce — are offering net-30, net-60, and even net-90 terms to enterprise buyers. Lucas breaks down the driver: procurement departments increasingly require standard invoicing to manage cash flow and compliance. He cites a 2025 study by SaaS Capital showing that 23% of SaaS companies now offer net terms to some segment, up from 12% in 2022. The hosts discuss the hidden trade-offs — delayed cash collections, increased dunning costs, and the need for credit checks — but also the strategic upside: larger deal sizes and longer customer relationships. Luna brings in a case study of a mid-market HR SaaS firm that added net-45 terms last year and saw average contract value jump 34%. They also talk about third-party platforms like Bill.com and Melio that facilitate invoicing while offloading collection risk. The episode closes by asking whether net terms could become table stakes for enterprise SaaS by 2028. #SaaS #NetPaymentTerms #B2BSaaS #SaaSRevenue #EnterpriseSales #SaaSFinance #Billing #ARManagement #Procurement #CashFlow #SaaSGrowth #Contracts #Salesforce #SaaSCapital #Business #Technology #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo
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