In a first for the SaaS industry, fintech Lemon is unveiling its 0% financing product, allowing businesses to finance their software subscriptions without any additional interest. 

Lemon, the financing platform connecting software vendors and buyers with personalised, quicker, and more convenient access to capital, is today launching its 0% interest financing product to the market. Backed by European bank, Siemens, the product aims to boost cash-flow strength for SaaS vendors by enabling them to get paid upfront, whilst allowing their customers to finance the product without additional interest, resulting in even more lucrative cost savings. 

Previously, the main focus of Lemon’s financing solution was to enable SaaS companies to offer monthly payments for typically discounted annual plans through interest based embedded financing models. Now, SaaS vendors will be able to offer this discounted annual price on a finance plan without passing on any additional interest charges for deals ranging from £1,000 up to £10 million. 

For vendors, the Lemon solution provides a platform to  seamlessly offer financing, expedite deal closures, and provide high levels of flexibility in the payment options on offer for their customers. At the same time, Lemon transforms the way in which businesses access this capital by match-making them with the best suited funder & modernising the application and approval process. 

Lemon has opted not to raise it’s own debt capital to fund these deals, instead offering a unique opportunity for forward thinking lenders to access a high growth, new asset class, which is an area Siemens was looking to capitalise on. Speaking on the collaboration with Lemon, James Twineham from Siemens said: “Lemon presents an innovative product to the market which supports both businesses and vendors in getting the best possible deal for their services. The offering provides a range of lending opportunities with promising outcomes; they have a strong proposition with the potential to add significant value to both vendors, their customers, and funders. I’m excited to scale this product with Lemon in the near future.”

Commenting on the new product launch, CEO and Founder of Lemon Matt Bird said, “Our mission is to build an open and borderless platform where responsible capital flows freely, particularly in the context of SaaS vendors and customers. Partnering with Siemens accelerates our ability to achieve this, as we can now enable finance deals of any size, with varying interest structures. The zero percent proposition will be a game changer for many businesses and is something I’ve never seen before in this use case. We share the same values around financing, and with the innovative and modern thinking of the Siemens team combined with our technological and customer expertise, we’re confident this collaboration has the potential to transform the industry. We’re excited to see the product grow, and for more companies to strengthen their financial positions because of it.”