5th Line Capital

Customer Financing

Offer your customers a more manageable payment option for your product or service without taking the cash-flow hit

About the Financing

Our customer financing program service is a non-debt financing option for you to offer your customers; whether it be for a physical product or software subscription. Rather than your customer having to foot the upfront cost of your product, this is a tool for them to finance the cost over a payment schedule.

Since there is zero debt obligation by the vendor, companies have seen tremendous upside in this offering compared to other options in the market such as factoring or revenue-based financing facilities.

Who Qualifies?

B2B SaaS Companies

SaaS companies structuring fixed-term and fixed-price contracts with their customers

B2B Product Sales

Companies selling physical products to their customers that may be looking for cash-flow friendly financing options to offer their customers

How It Works

Initial Review

Enter your name, email address, and main preferences

Approval & Review

Facility is approved under criteria provided on transaction sizes and customer base

Implementation

5th Line implements facility with you and the lender

Customer Funding

You are ready to start processing customers for funding

It is important to understand this type of customer financing program

What it is...
A third-party financing facility to offer your customers to increase sales conversion and boost cash flow
What it isn't...
It is not debt, there is no liability by you, and your customer enters into a simple leasing agreement with the lenders where the collateral is on the product or software

Benefits to our Clients

Each of our clients has differing reasons and value in the customer financing program

Convert monthly payments to cash upfront

If your customers are currently paying monthly installments for your product or service, this is a way to realize the cash value of your contract upfront while they still pay monthly

Realize the value of multi-year contracts upfront

If you have multi-year software agreements, this is a way to realize the full contract value upfront without having to change your customer contract model

Alleviate Bandwidth of regular billing & collecting

If your finance team dedicates significant time and resources toward regular customer billing & collections, this is a clear path to lightening their workload

Ins and Outs

Is it Debt?
It is not a liability on the balance sheet by any party in the transaction. The vendor has no financial obligation once the sale of your product or service to your customer. Your customer enters into a fixed-term leasing agreement with the lender and all payments and collections are handled between them.
What happens if my customer doesn’t pay the lender? Am I on the hook?
No, if the customer defaults on payments, then that is handled between the lender and the customer, you have no liability in this process.
I have multi-year software agreements with my customers, can I finance those contracts?
Yes. Companies see a lot of value in offering payment options on multi-year agreements to their customers as they can realize 2-3 years+ of contract value upfront in cash.
Do I have to collect my customers’ financials?
No, your customers can be provided a direct, secure link to upload 3 months of bank statements and a one-page credit application to upload directly to the lender to process and provide approval.
Are there minimum requirements to maintain this facility?
There are no minimum requirements to keep the facility in place and you are not required to send any percentage of your customers through the facility. The facility is there for you to have as a tool for when it is needed.
What do I need to provide for facility approval?
Basic answers to a handful of questions that can be exchange through a simple email exchange. No financials or projections required from you to get the facility approved.