Aussie fintech launches revenue solution for MSPs and ISVs
BidFin, an Australian-based fintech, has launched a recurring revenue funding solution for the Australian technology market.
The solution is 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 designed to allow Australian IT suppliers to be paid upfront whilst allowing end users to pay for technology over time.
BidFin states the company'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.
BidFin states the company was born out of the need for a shake up in the technology financing arena. BidFin founders took their experience in the sector to create a new customer-centric technology purchasing experience.
This latest offering follows increasing demand for subscription-based services and pay-as-you-go models, which organisations and governments are demanding from their technology providers.
BidFin CEO Ross Simon says, “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 the company, with the ability to access capital upfront via BidFin's solution, MSPs and ISVs can experience 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.
MSP's and ISV's can continue to promote customer centric monthly billing while accessing the upfront capital needed to scale.
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% from 2021. BidFin states the company is poised to help its partners drive this growth, and earn their share, by having the right financing solutions in place, accommodating for suppliers that invoice both upfront and monthly over time.
Simon concludes, “As a relied upon fintech, 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.
"BidFin provides an easy to access funding platform that can be consumed the way that customers want and expect in a digital-first world.