Below, we’ve listed out a few benefits that buyers experience when leveraging payment plans.

Unlocking future budgets:

Many times, the cost of hardware or services far exceeds a team's monthly or quarterly budget. For example, if a software costs $50,000 per year, but a team's budget for the quarter is just $20,000, a buyer could opt for 12 months of payments, resulting in a payment plan of just $4,166 per month. By spreading out their payments over time, they’ll gain access to future budget to pay for products and services they need today. In turn, they are able to both pay for the service they want today and leverage the remaining $7,500 of their quarterly budget for additional investments to drive more growth.

Access to free cash flow:

When companies pay for products and services over time, their upfront expenses are drastically less than what they may have forecasted. This access to free cash flow can truly enhance a company's ability to grow and stay agile. A few examples of how companies take advantage of additional cash flow are:

Invest in growth

‍Free cash flow can enable a small company to invest in new products, expand into new markets, and hire more staff, which can help it to grow and increase its revenue.

Improve operations

‍Companies can use extra cash flow to improve their operations and make them more efficient. This might include investing in new technology or equipment or outsourcing certain tasks to specialists.

Increase marketing and advertising

‍Companies can use extra cash flow to increase their marketing and advertising efforts. This might include developing new marketing materials, launching an advertising campaign, or increasing their online presence with new ad spend.

Reduce debt

‍If a small company has outstanding debts, it can use extra cash flow to pay them off. This can help it improve its credit rating and reduce its interest payments.

Create buffer and future-proof

Companies can use extra cash flow to create a buffer for unexpected expenses, this can help them be more prepared for unexpected events that can disrupt the business.

Decreased Company Risk:

By paying for a product or a service over time, a buyer decreases their overall risk by not depleting a large portion of their total budget on day one. Monthly payments help the company match spending with revenue, improving the stability of the company’s finances. At the same time, teams are not beholden to only one purchase at a time, but rather, able to make multiple simultaneous purchases to unlock opportunity and propel the company forward.

Access to Best-in-class Products:

Payment plans decrease pricing hesitations and budget constraints, resulting in a buyer's ability to purchase the best software and hardware on the market. When companies are able to afford the best, regardless of their size, their teams are better equipped to succeed.