Finance teams benefit when sales reps offer financing as a payment option because they:

1. Increase Sales: Offering financing options can make SaaS software more accessible and affordable for potential buyers, which leads to an increase in sales today. And by offering payment plan options, sales reps decrease their average discount rate. Together, financing options help companies achieve revenue goals and make more profit.

2. Improve Cash Flow: When sales teams offer financing as a payment method, buyers are able to spread the cost of the software purchase out over time, and selling teams gain access to the full contract value upfront. In many cases, this means selling companies are able to pull forward up to 5 years of contract value. Financing deals are a cash flow win-win for buyers and sellers as both buyers and sellers have access to free cash flow on day one.

3. Improved Customer Retention: When buyers pay for goods over time, their access to free cash flow is increased, which in turn improves their ability to purchase new product options (queue upsell unlock), and their ability/desire to continue using their purchased software increases.

4. Competitive Advantage: Offering financing options can help a company stand out in a crowded market and be a competitive advantage over other companies that don't offer financing or payment flexibility.

5. Increase Efficiency for Deal Desk: Working with a third-party financing provider can increase the efficiency of the sales closing process, as the provider will handle all of the paperwork, which can free up the finance team's time to focus on other important tasks.

6. Decrease AR Risk: When deals are financed, the selling company is paid the full contract value upfront. Finance teams experience less risk as they are guaranteed full payment and are not reliant on future payments from buyers.