BidFin launches SaaS funding option in the Australian market

BidFin, an Australian-based fintech, has launched an innovative recurring revenue funding solution for the Australian technology market, aimed at managed service providers (MSPs) and independent software vendors (ISV) offering as-a-Service (aaS) solutions to local customers. This complements BidFin’s existing range of flexible payment solutions that allow Australian IT suppliers to be paid upfront whilst allowing end users to pay for technology over time.

BidFin’s mission is to be the payment solution partner of choice for technology suppliers, providing valuable payment flexibility at the point of sale to small and medium-sized businesses (SMBs), midmarket, enterprise, and government customers. This mission led BidFin to a recent AU$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.

This latest offering follows strong demand for subscription-based services and pay-as-you-go models, which organisations and governments are demanding from their technology providers.

Ross Simon, CEO, BidFin, said, “Following a stellar 2021 and a successful capital raise, BidFin is thrilled to be able to bring this new funding offering to the market. 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’s new offering solves for 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 Gartner, spending on technology products and services in Australia is projected to exceed AU$109 billion in 2022, an increase of 6.5 per cent from 2021.


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