Why the best SaaS companies have a payback period of 0 months!

  1. Companies with annual pre-payments may consider boosting growth with a slightly higher payback period (e.g. from 13 to 23 months).
  2. Companies with a monthly invoicing schedule may consider providing a discounted rate for annual prepayment. This can reduce the need for an expensive equity investment because there is less working capital required for pre-financing customer acquisition costs.

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Scaling Software Companies

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