capchasea provider of non-dilutive growth capital, is now in the buy now, pay later space following the launch of Capchase Pay to help Software-as-a-Service companies close deals faster.

Capchase Pay enables SaaS companies to collect the full contract value for their software while offering their customers flexible payment terms.

While SaaS growth didn’t take as much of a hit as previously thought, Miguel Fernandez, co-founder and CEO of Capchase, told australiabusinessblog.com that SaaS companies saw a shift in their return on investment as sales cycles slowed as buyers asked for more flexible financing terms.

He called “buy now, pay later” offers “one of the last B2B payment frontiers to be made in software.” Enterprise companies like Microsoft, SAP, Salesforce, and Oracle can bring their own financing solutions to the table to help convert, but it’s still burgeoning territory for midsize companies.

Those SaaS companies end up offering large discounts for upfront payments, which after the first year, when the discounts aren’t expanded, prove to hurt sales and retention, Fernandez said. Capchase’s spoke to SaaS customers and found that more than 50% of them experienced longer sales cycles and customer payment delays, and nearly 40% of companies extended their collection times as a result.

“We thought it was a perfect time to bring a product to market and accelerate conversion,” he said. “Sellers get all the money up front so they can keep running the business and buyers can get payment flexibility.”

Capchase Pay automatically generates quotes and offers flexible payment options for bank accounts and credit cards. More than 20 SaaS companies have signed up to use the product in beta, with Capchase reporting that these early customers have experienced a 300% increase in sales velocity, an 80% increase in lifetime value, and a 20% annual contract value increase .

One of them, CIENCE, a lead generation company, said it closed deals in half the time within a month of using Capchase Pay and grew its pipeline from low, single-digit prospects for 12-month SaaS contracts to 50 with a average deal size of $100,000,” August Keating, COO of CIENCE, said in a written statement.

Fernandez said offering a “buy now, pay later” product has also expanded Capchase’s user base. There was a typical close for revenue-based financing clients with less than $30 million in annual recurring revenue. However, some of his early BNPL clients have hundreds of millions in ARR, he said.