You see delayed payment everywhere in b2b - "net-30" for example.
There was a story posted on HN once about a business saving money by prepaying. Some guy was working for a restaurant and saved 70% (yes, over two thirds) on their meat by, instead of ordering each day and settling on net-30 as they had been doing and as is typical, calling up their meat vendor and committing to a certain minimum order every day and paying for it right then. Because cash flow is that important to some businesses. The vendor said they'd never had a customer so good before, and yet it wasn't such a big deal for the restaurant. (Yes, they tend to run on thin margins, well, now their margins are a little bit fatter and they can afford to have mispredicted their meat usage a little, and still come out ahead).
It's the same as Hetzner vs AWS. You buy AWS, you can ramp up and down your bill any time, but you're overpaying by a huge multiple (can even be 10x-100x). If you get your servers from any traditional provider that's updated their price in the last five years, they'll bill you monthly for your server, and there's a setup cost of approximately one month, and you can't scale up without a week latency or down without two months, but you get the same amount of server for an incredibly low price (if you're accustomed to AWS) which - if you're not running a workload as bursty as Amazon on Christmas Day - lets you overprovision enough to more than make up for the inflexibility.
There was a story posted on HN once about a business saving money by prepaying. Some guy was working for a restaurant and saved 70% (yes, over two thirds) on their meat by, instead of ordering each day and settling on net-30 as they had been doing and as is typical, calling up their meat vendor and committing to a certain minimum order every day and paying for it right then. Because cash flow is that important to some businesses. The vendor said they'd never had a customer so good before, and yet it wasn't such a big deal for the restaurant. (Yes, they tend to run on thin margins, well, now their margins are a little bit fatter and they can afford to have mispredicted their meat usage a little, and still come out ahead).
It's the same as Hetzner vs AWS. You buy AWS, you can ramp up and down your bill any time, but you're overpaying by a huge multiple (can even be 10x-100x). If you get your servers from any traditional provider that's updated their price in the last five years, they'll bill you monthly for your server, and there's a setup cost of approximately one month, and you can't scale up without a week latency or down without two months, but you get the same amount of server for an incredibly low price (if you're accustomed to AWS) which - if you're not running a workload as bursty as Amazon on Christmas Day - lets you overprovision enough to more than make up for the inflexibility.