PYMNTS MonitorEdge May 2024

Capchase Debuts Invoicing Tool as Delayed Payments Rise

office worker with invoices

Revenue acceleration platform Capchase has debuted an invoice collection tool for Software-as-a-Service (SaaS) companies.

Capchase Collect is designed to help further the company’s goal of helping SaaS firms manage revenue, access non-dilutive capital, and accelerate growth, Capchase said in a Tuesday (Dec. 5) press release.

Capchase Co-founder and CEO Miguel Fernandez said the new solution is designed to address “the core challenge of securing revenue from customers in a consistent and efficient way.”

According to the release, Capchase Collect automates invoicing by sending reminders and providing a system for easy repayment to speed revenue growth.

“With Collect, we streamline the entire process — beyond just invoice generation — ensuring timely payments, reducing errors, and facilitating robust collaborations across departments,” added Fernandez.

The release points to PYMNTS Intelligence from last year showing that 49% of the invoices produced by a business for services become overdue.

And the longer collection takes, the less likely it is the customer will pay, Capchase added, saying that average days sales outstanding (DSO) for SaaS companies has risen by 20%.

“With macroeconomic uncertainty, companies are looking for more ways to increase their cash position and extend runways, making it ever more imperative to collect on invoices in a timely manner,” the company said.

The problem of late payments hasn’t gotten any better since PYMNTS examined the issue last year. As covered here in October, more than 8 in 10 companies reported seeing delayed payments rise in 2023.

Earlier this year, Capchase introduced Capchase Pay, an installment payment tool for SaaS firms designed for businesses that sell via long-term, annual contracts.

The product “acts as a financier” for buyers who wish to purchase and access a SaaS product right away but pay for it over time, the company said. Buyers can pay in installments, while Capchase Pay pays the vendor in full up front.

“Investors and VCs are tightening their purse strings and demanding better margins, and as a result companies are slashing their budgets,” the company said in May.

“The appetite (and resources) to buy new tools that require expensive, lengthy contracts that need to be paid upfront just isn’t there anymore — so sales cycles are slowing down, or even grinding to a halt.”