Founded in 2004, IOTAP is the creator of Work 365, a B2B SaaS application that provides subscription management and billing automation solutions to IT businesses. “Our mission is to help our customers manage and grow their recurring revenue,” said Ismail Nalwala, CEO of IOTAP.
Nalwala discovered Capchase Pay—a buy now, pay later solution for B2B SaaS companies—through a conversation with one of Capchase’s founders. Immediately, he saw how the product aligned with his company’s goals to improve ARR for themselves and their customers.
“My first impression of Pay was that it was just such a smart idea, and one I hadn’t heard of before,” said Nalwala. “As a SaaS founder myself, the opportunity to turn recurring revenue into a financing opportunity is what really resonated with me.”
The ability to have greater cash flow management, shorten sales cycles, and create upselling opportunities is what convinced IOTAP to partner with Capchase.
Improved cash flow for IOTAP and its customers
Outside of the novelty of B2B BNPL, what initially gravitated Nalwala to Pay was that he saw it as a powerful tool for both his company to improve revenue management and his customers to manage cash flow.
“As a SaaS company, reducing the friction in the sales cycle is certainly important and was the initial benefit I saw in Pay,” said Nalwala.
With Pay, IOTAP can offer its customers full access to its services without requiring them to pay the full amount of their contract upfront. Instead, IOTAP’s customers pay Capchase in comfortable monthly installments, while Capchase pays IOTAP the full annual value of each contract within 30 days of the deal closing. Capchase also handles all the billing and collections with IOTAP’s customers, eliminating extra work for IOTAP.
Not only does IOTAP benefit by receiving payment upfront without needing to handle billing, but its customers also benefit because they don’t need to worry about having the funds on hand to pay off the full cost of an annual subscription immediately.
“The fact that Pay can also help our customers manage their own cash flow through installments is very important to us,” said Nalwala. “It helps remove potential friction in the sales and negotiation process.”
Shortening sales cycles and creating upsell opportunities
When IOTAP brought on Pay, they immediately used it on a few deals that were already in progress. “The deals in our pipe were proceeding on our typical timeline,” said Nalwala. “But, in all honesty, I think not having Pay in place could have delayed them from closing.”
Moving forward, Nalwala sees this as the primary use case for Pay. He plans to instruct his sales team to use Pay as an incentive to accelerate deals that are stuck or that are facing delays.
“I expect to see Pay as a way to shorten our sales cycles long-term for Work 365 users,” said Nalwala.
In addition to reducing time to close, Nalwala anticipates that Pay will help IOTAP create more upsell opportunities for current and prospective customers because it removes budget constraints as a purchasing factor. With Pay, customers don’t need to worry about having large amounts of cash on hand to cover their full annual subscription in one upfront payment.
“With upfront payment no longer a concern with Pay, I see customers adding on and using more of our solutions,” stated Nalwala. “Which means greater revenue generation for us.”
Creating a seamless payment experience
When it comes to pitching Pay to customers and having them submit and process their payments, IOTAP has found this to be a fairly easy process. “Capchase supported us exactly the way I wanted in our onboarding process—I really appreciated the guidance from their teams,” said Nalwala.
When a deal is closed and ready to be funded through Pay, IOTAP’s sales team generates a custom payment link. These links take their customers to Capchase Pay’s payment portal, where they can see the terms of their contract and payment schedule, and submit their payments through ACH or credit cards.
“The ability for our team to easily generate these payment links on their own makes the workflow with Pay quite smooth on the operational side,” stated Nalwala. “And we’ve had very positive feedback from our customers about how easy it is to submit their payments in Capchase’s portal.”
As IOTAP continues to fund deals through Capchase Pay, Nalwala is looking forward to seeing how it can help continue to reduce IOTAP’s sales cycle and bring in more revenue to the business. “I know I keep saying it, but it’s true: I do see Pay being a core tool in our sales process,” said Nalwala.