Lemon and Shawbrook Bank launch first-of-its-kind SaaS financing solution for SMBs

Lemon, a Software-as-a-Service (SaaS) finance gateway, has announced the launch of a first-of-its-kind financing product in partnership with Shawbrook Bank.

Lemon, a Software-as-a-Service (SaaS) finance gateway, has announced the launch of a first-of-its-kind financing product in partnership with Shawbrook Bank.

This collaboration aims to unlock new opportunities for SaaS vendors, while significantly cutting costs for SMBs on their software spending.

The partnership has been forged to enable SaaS vendors to receive upfront payments for their annual or multi-year subscriptions, while allowing their SMB customers to repay monthly at a more affordable rate.

This innovative solution not only improves cash flow for SaaS companies but also delivers cost savings for small businesses.

Lemon, which specialises in reducing subscription costs for SaaS vendors and their customers, is officially launching this lending product to the broader market following a successful Beta phase.

By offering upfront payments to SaaS vendors, Lemon helps reduce churn and boosts overall vendor revenue, while customers benefit from manageable monthly payments. Shawbrook Bank brings its extensive financial expertise and lending capabilities to the partnership, facilitating the rapid scaling of the product to meet growing demand.

This collaboration leverages Shawbrook’s expertise in providing flexible and affordable lending solutions, empowering small businesses with the purchasing power usually reserved for larger corporations.

As a result of this partnership, SaaS vendors can expect improved customer retention and a reduction in churn, while SMBs will enjoy significant savings on their SaaS expenditures. Lemon has reported that businesses using this financing model have already saved over 50% on SaaS subscription costs.

Philipa Pykett, head of digital SME growth at Shawbrook Bank, expressed her excitement about the collaboration, stating, “We’re delighted to be supporting Lemon with its ‘first-of-its-kind’ SaaS financing product. As a specialist lender, we’re able to offer small and medium-sized businesses the type of tailored products and premium service that much larger corporate organisations can expect. So, Lemon’s mission of providing these same small businesses with the purchasing power of much larger organisations – benefitting from lower prices and better terms – is something we recognise and are happy to support. We’re excited to be the first financial institution collaborating on this innovation and we look forward to seeing this partnership grow and more businesses benefit.”

Matt Bird, CEO and co-founder of Lemon, added, “Collaborating with Shawbrook is testament to the market demand for a SaaS financing solution that helps both the buyer and seller win, but also adds value to the banking ecosystem, and we’re proud to be integrating Shawbrook’s lending products into Lemon’s current offering.”

Bird further emphasised the importance of the partnership, stating, “The finance element will vastly increase the capabilities of our existing product, allowing us to onboard and service a huge variety of SaaS vendors who need to reduce their current customer churn, and at the same time, reduce costs for their customers. The knock-on effect of this could be extraordinary, and we can’t wait to see our visions and ideas for better SaaS financing solutions become a reality through this collaboration.”

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