BidFin launches first vendor agnostic recurring revenue 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.
BidFin 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 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.”
With the ability to access capital upfront via BidFin’s solution, MSPs and ISVs will 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 per cent from 2021.(1) BidFin is poised to help its partners drive this growth, and earn their share of this growth, by having the right financing solutions in place, accommodating for suppliers that invoice both upfront and monthly over time.
BidFin’s value lies in the ability to truly understand the entire IT ecosystem. Its team has depth and breadth of expertise across IT and financing, which allows it to develop flexible, adaptable solutions that change and evolve as the industry does. In addition, 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.
Ross Simon said, “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.”
