How Customer Subscription Financing Works

No. This is deferred revenue just as if a customer had paid a vendor upfront cash directly. Lenders underwrite the customer, not the vendor.

No. This is a non-dilutive form of funding.

This funding model is not too good to be true for 2 reasons: Vendor's customers must be credit approved and they sign an additional payment document during the sales process. As experienced operators who personally used this model to finance over $30M of subscription contracts, the Keystone team helps vendors properly position this program to their customers.

Typically within 24 - 48 hours of their customer completing the payment document.

All customer contracts must be binding and non-cancelable for the term. The lender assumes the customer collections risk. If a customer has missed payments, the lender will request that the vendor restrict access to their software until they are current.

Business as usual. A vendor simply sells the subscription as they normally would without financing.

Yes. Customer financing does not occupy a debt position so vendors can stack this funding solution with other traditional debt resources.

We are paid through our financing partnerships.

Depending on contract term length, our financing partners typically prefund 82% - 88% of the total contract value.

No. Vendors have complete flexibility to use this on a deal-by-deal basis.

Yes. Vendors can roll in any additional costs that their customer would otherwise be paying upfront for and convert it to a monthly payment.

These can be rolled into the existing finance agreement with coterminous payments or the vendor can bill the customer directly.

Yes. The Keystone team will help you design and implement your new customer financing strategy.

Contact us and we will start a vendor profile.