Ross Simon (BidFin)
Australian-based fintech provider BidFin has launched a vendor-agnostic recurring revenue funding solution aimed at managed service providers (MSPs) and independent software vendors (ISVs) offering as-a-service solutions.
The solution complements BidFin’s existing range of flexible payment solutions which allow Australian IT suppliers to be paid upfront while allowing end users to pay for technology over time.
“MSPs and ISVs often run into scale challenges as a result of incurring significant upfront costs coupled with a go-to-market offering that means they can only bill and collect revenue from end customers monthly over time,” BidFin CEO Ross Simon said.
“BidFin’s new offering solves this mismatch in cashflow by recognising these future monthly recurring receivables as an asset class and prefunding up to 90 per cent of the annual contract value upfront.
“With this new recurring revenue funding offering, MSPs and ISVs have a viable, non-dilutive, financing option that will help them unlock the future value of their monthly subscription-based contracts upfront, providing immediate growth capital for reinvestment.”
According to BidFin, the ability to access capital upfront will give MSPs and ISVs increased revenue growth by being able to bring on more customers at scale and avoid the need to consider dilutive and unnecessary merger and capital raising activity.
MSPs and ISVs can continue to promote customer centric monthly billing while accessing the upfront capital needed to scale, the company said.
BidFin is underpinned by the technology it helps fund, with a completely digital customer onboarding process from the application through to customer verification, settlement, collection and seasoning.
“BidFin offers its vendors, partners and customers a truly digital offering, backed up by security features such as biometric verification for customer identification, which is just another way BidFin brings value to the technology procurement supply chain,” Simon said.
Established in 2017, BidFin’s products range from short-term payments solutions such as extended supplier invoice terms of up to 180 days and longer-term payment options of up to 60 months for software, hardware and managed services purchases.
BidFin recently secured a $6 million capital raise to fund business growth, unlock a larger debt facility and increase headcount in the region including additional sales and credit resources.
