Strong cash flow isn’t just a finance metric. It’s what keeps your startup alive long enough to grow.
When cash comes in faster than it goes out, you have options. You can hire. You can invest in product. You can test channels, raise on better terms, or choose not to raise at all.
Why it matters more in SaaS
SaaS businesses often front-load costs, building the product, onboarding customers, supporting usage, and recover that value over time through monthly subscriptions. That delay creates a cash gap, especially early on.
If you’re growing fast but collecting slowly, you can end up with negative working capital. It looks great on paper but feels stressful in the bank account.
Cash gives you control
Founders with strong cash flow make better decisions. They don’t have to raise in a panic. They can push back on bad deals. They can survive longer downturns and take longer-term bets.
Even small improvements in cash flow, like annual contracts, prepayment, or reducing payment delays, can make a big difference.
Customer financing helps bridge the gap
If your customers want flexible terms but you need cash up front, this is where customer financing can help.
Lemon lets you offer monthly instalments while still getting paid the full annual amount on day one. That means stronger cash flow without changing your pricing or chasing invoices.
In SaaS, revenue is great, but cash is what lets you use it.
