Ordway

ACH transactions typically feature lower processing fees and higher retention rates for recurring billing due to fewer expiration issues compared to credit cards. While credit cards offer instant authorization, they often come with higher transaction costs and can lead to involuntary churn from expired cards. ACH payments are not subject to card expiration or fraud holds, improving cash flow predictability. ACH payment processing for debits typically takes 1 to 2 business days for initiation, with settlement times usually ranging from 2 to 3 business days for funds to become available in the recipient’s account. While not instantaneous, the predictability and lower cost of ACH often outweigh the speed differences for recurring transactions. Modern billing platforms like Ordway streamline the entire cycle, ensuring efficient processing and clear visibility into settlement status.

New ARR is calculated by summing the Annual Recurring Revenue from all new customer contracts signed within a specific period. It focuses solely on revenue generated from entirely new logos, excluding expansions from existing customers. Accurate calculation requires robust subscription management systems to track new contract values separately from renewals or upsells.New ARR is an important metric for investors like private equity, venture capital, and growth equity firms. It is critical because it directly measures a subscription business’s ability to acquire new customers and expand its market share. Consistent growth in New ARR signifies strong sales execution, effective marketing, and a compelling product offering that attracts new logos. It’s a key indicator of future revenue potential and sustainable business expansion.

The ability to retain and grow customers is one of the most important factors investors look for to assess the health and performance of a SaaS business.  In this article we will share five strategies that SaaS companies can use to generate expansion ARR, like upselling seats, increasing product usage, and leveraging feature upgrades.

The goal of every invoicing process is to collect the payment from the customer.  But receipt of the cash isn’t always the last step in the process. Discrepancies between invoice amounts and actual payments often prolong the order-to-cash process for weeks after the collection is made.  Cash application is a common source of frustration for finance teams, leading to reconciliation nightmares and skewed financial reporting. In this podcast, we will explore the seven root causes for these mismatches and share best practices your finance team can use to address the challenges. 

Optimizing cash flow is vital for any SaaS business, especially where recurring revenue fuels growth. Small delays in collecting payments can lead to significant operational challenges and strain resources. By implementing a proactive, customer-friendly collections process, leveraging automation, and ensuring payment flexibility, companies can drastically reduce Days Sales Outstanding (DSO) and enhance financial stability. In this podcast, we'll share ten proven strategies designed to accelerate cash flow and maintain predictable revenue streams.Best practices are:Automate invoicing and payment processes to significantly reduce Days Sales Outstanding (DSO) and avoid unnecessary delays.Offer diverse payment options and a frictionless payment experience to meet customer preferences and encourage timely payments.Empower internal teams, especially customer support, with comprehensive billing details to quickly resolve inquiries and prevent payment delays.Proactively manage credit risk through scoring and incentivize early payments to secure revenue and minimize potential losses.Implement automated dunning communications and efficient dispute resolution workflows to ensure consistent cash flow and improve customer relationships.

Account hierarchy refers to the structured relationship between multiple customer accounts or sub-accounts within a parent organization. It enables SaaS companies to manage sales, customer success, billing, contract commitments, accounting, and reporting across complex customer structures—such as those with multiple subsidiaries, business units, or geographic entities.

Usage-based pricing often creates “gotcha” invoice moments that drive customer support tickets—especially when convenience features introduce complexity. In this episode, we'll explore  six common confusion triggers: Monthly minimum commitmentsOverage feesZero-dollar invoices from prepaid balancesAuto-replenishment chargesExpired prepaid creditsIneligible spending that doesn’t count toward a commitmentWe'll discuss strategies to reduce disputes, such as:Radical transparency in usage data (granular records)Building a proactive education hub (FAQs + examples)Sending regular account statements alongside invoices for customers with complex agreements.  

Credit cards offer a convenient, low-friction experience for customers, but the processing fees can add up to be a meaningful drain on margins. Passing credit card surcharges to customers can help recoup these expenses. However, managing customer communications and backlash can be tricky, as can navigating the intricate regulatory landscape.In this article, we’ll do a deep dive into credit card surcharges.