Andrew Rea’s Post

I agree with the premise of this post by Andrew Rea that the software PE acquisition model is changing because the software industry keeps changing. However, some software companies have higher switching costs than others. I’m sure there’s a risk equation that could calculate switching costs against renewal rates (and cost of alternatives) to determine forward LTV, similar to default rates on loan paybacks by debt type.

The B2B payments landscape is split between two distinct worlds: SMBs and Enterprises. As an industry we get pulled in two directions. Is it possible to meet the needs of both? SMBs crave simplicity: all-in-one solutions that streamline operations and offer access to credit. They’re looking for cost-effective automation with transparent pricing. Meanwhile, enterprises demand scalability, advanced integrations, and tailored workflows to support their complex environments. (In my experience, midmarket companies tend to gravitate toward enterprise or SMB - it varies by industry and the culture of the individual company.) Here’s the opportunity: 👉 For SMBs: Digital adoption is expanding, especially in underserved verticals still relying on checks. The key is offering easy-to-use, automated solutions with minimal IT requirements. 👉 For Enterprises: Integrations with existing ERP systems and advanced reporting tools are must-haves, alongside customizable workflows and flexible payment processing options. Each segment brings unique challenges and opportunities, but one thing is clear: one-size-fits-all won’t work. Any enterprise solution moving down market or SMB-centric provider striving to serve larger customers has learned this the hard way. It's really fundamental, but I am astonished how often this bears repeating. My colleagues Michael Cashman, Roger Zhu, Justin Miller and seem to talk to software companies, payment providers, and investors about this nearly every day. How is your organization tailoring its approach to win in both markets? Let’s discuss in the comments 👇

The B2B payments space is clearly divided, but what if we looked at it differently? Instead of treating SMBs and enterprises as separate worlds, why not build modular solutions that grow with the business? For SMBs, think of a simple, ready-to-use platform that handles payments and credit access—just like how Shopify made e-commerce easy for small businesses. As these SMBs expand, the same platform could scale up, offering enterprise-level integrations like ERP connections and advanced reporting, much like how Salesforce adapts to different business sizes. Imagine a small retail store evolving into a major chain without needing to switch systems—just upgrading as they grow. This kind of flexibility could bridge the gap between simplicity and complexity, helping businesses of all sizes thrive. Isn’t it time we focused on creating solutions that evolve with businesses instead of boxing them into fixed categories? #B2BPayments #DigitalTransformation #SMBGrowth #EnterpriseSolutions #ScalableInnovation #FutureOfFinance #BusinessGrowth #PaymentsSimplified #ERPIntegration #TechForSMBs #Fintech #PaymentSolutions #BusinessScaling #Automation #InnovateToElevate

Advancements in B2B payments go beyond mere technology; they're about addressing workflow inefficiencies. Explore how your organization can use scalable solutions to simplify payments and enhance operational efficiency.

Growing B2B SaaS companies often struggle with the complexities of recurring billing. If not managed properly, this can severely impact growth, leading to revenue loss, unhappy customers, and high churn rates. 🚫💸 Let's dive into the 5 Key Challenges of Recurring Billing and provide actionable solutions to overcome them. Here’s a sneak peek: 1️⃣ Scalability 📈 Challenge: Managing new payment structures, markets, and a growing subscriber list can be tough. Solution: Implement robust, scalable infrastructure and systems, and offer various pricing tiers. 2️⃣ Flexible Billing Frequencies 🗓️ Challenge: Fixed billing schedules can frustrate customers and increase churn. Solution: Invest in flexible billing software that aligns with customer preferences and growth goals. 3️⃣ Data Security 🔒 Challenge: Online transactions are convenient but pose security risks like identity theft. Solution: Use secure billing systems with reputable processors and follow PCI regulations to protect sensitive data. 4️⃣ Revenue Recognition Compliance 📊 Challenge: Properly recognizing revenue from subscriptions is complex due to variable pricing and contract modifications. Solution: Utilize accounting software designed to comply with IFRS 15 and ASC 606 rules. 5️⃣ Seamless Customer Service 🤝 Challenge: Growing customer numbers can strain your service capabilities. Solution: Adopt cloud-based subscription management to automate communications and improve reliability. ✨ Recurring billing is intricate, but with the right strategies, you can ensure your B2B SaaS company thrives and keeps customers happy. Dive into our article to learn more! 💡 #SaaS #B2B #RecurringBilling #BusinessGrowth

As we approach the end of most financial years at B2B software companies pressure is building up on Growth and Revenue teams to close the remaining budget gap. The biggest temptation of all is to allow this large prospect to a get customisation embedded into our Product! Rich Mironov elegantly details the consequences of accumulating Customisation Debt: - Hidden maintenance costs - Disruption/Delays on our BAU Roadmap - Addiction to repeating these 'Specials' How many 'Specials' did your Portfolio Companies signed-up to in the past 5 years? How many times these 'Specials' have impacted your following year budget? How many demotivated 10x developers have we lost because we assigned them (punished really!) to fix the 'Specials' that everyone had forgotten about? All our Value Creation Plans (#vcp) should incorporate at the very minimum an inventory of these 'specials' so that we can explore how to: - Stop them from happening in the future - Turn them into an opportunity for those already contaminating our code, product differentiation and financials Slava Shafir you posted on the opportunities that #technicaldebt could offer, any ideas you'd like to share on #customisationdebt? #vcp #operatingpartners #valuecreation

LET'S MAKE THIS DAY 1 OF FOUR GREAT YEARS FOR COLLECTIONS. WHAT WILL YOU CHANGE? As many companies evaluate collection software, we must do our part to objectively educate and share. How about some objective advice?   1. You must look at collection software platforms. Do not be swayed by shiny objects. Modern collections is a complex business that requires deep domain knowledge, strong AI (which is not Gen AI), and automation options, from software vendors. 2. Technology costs much less than people. Look at the true 5-year cost of ownership, including your total head count. Modern collection software is not only about digital communications and modern user interfaces. It’s more about very complex technologies like texting, e-mail, and chatbots integrated with with conventional requirements like account linking, payment distribution and workflow management. 3. The availability of integrated two-way texting with MMS, is an excellent test for a potential vendor. From the time accounts are placed, can you intelligently and compliantly e-mail, text, and dial, dynamically adjusting strategies based on consumer responses (e.g., they opened an e-mail)? In 2025, all this can happen without human intervention. 4. Who and what you believe is important. The traditional collector is becoming extinct faster than we want to accept, and the real future for collections is compliantly managing the shift to customer service and high volumes, without people. If you spend more on the 85% you do not collect, than the fees from the 15% you collect, you are taking a bath at your bottom line. How do you win? Automation, strong AI, and the best integrated vendor partners. This is the most important decision you will make for a very long time. Contact us before you have seen the others!   Quantrax Corporation, Inc. (301) 657-2084 Nora Golden ([email protected]) Mark M Namba ([email protected]) Jonalene Perdigon RevSpring VoApps, Inc. Payscout Solutions by Text REPAY - Realtime Electronic Payments TCN PALINODE Nuvei Renkim Print and Electronic Mail Solutions ezPay365 Sytel Ltd Interactive Data, Inc. Channel Payments .

The B2B invoicing and payment landscape is undergoing a transformation, and businesses need to adapt. Explore how automation, AI, and digital platforms are streamlining these processes, cutting costs, and boosting efficiency. Find out how these innovations can enhance your organization’s financial operations and strengthen partnerships. Monto #B2B #Fintech #Automation #DigitalTransformation https://lnkd.in/gfVP5CTi

Despite the clear benefits of B2B payments automation, only 17% of enterprises have largely automated their source-to-pay cycle. This indicates that most B2B businesses still rely on manual processes, leading to delays and inaccuracies. Automated payment systems can process transactions quickly and accurately, crucial for maintaining smooth operations in industries where timely payments are essential. Unlike traditional systems, automated systems are scalable and flexible, adapting to growth and new market environments. #b2bpayments #Automation #efficiency

In #SaaS engineering, this is known as the “Customer Branch” problem: nearly every client ends up with a unique, forever code branch with their customizations, sometimes even dedicated deployment scripts. Eventually, the main branch itself becomes just another “customer,” creating a maintenance nightmare, draining budgets across the board, and bringing feature delivery to a grinding halt. Imagine a car manufacturer setting up an entirely new assembly line for each model tweak—it’s unsustainable. As you pointed out, Slava Shafir, strategic action is essential to tackle this, but many think it requires major upfront capital investments. It doesn't. Incremental modernization strategies, like the Strangler Pattern, allow us to gradually integrate these “specials” as configurable features to the main product while keeping the “apple cart” stable until no apples remain to spill. In any respect, it is fascinating to see/read how PEs recognize and deal with various issues in engineering practices on the value creation side.