For small firms and agencies alike, cash flow is king. Knowing when and how payments are being collected grants you peace of mind with a stable, predictable invoicing schedule. If your client is concerned about overpayment, or if they’d prefer to use ACH to pay, a payment plan is a simple solution for both problems. Here we’ll discuss the details of why you should offer payment plans for clients and how they would be beneficial for your business.
Convenience and Easy Setup
With payment plans, you need to set up an invoicing schedule. A virtual terminal will automatically email the invoice to your client so they can pay. You can even choose whether your client can pay using ACH, a credit card, or both. Clients want flexibility in how they can pay for big-ticket services and items.
They can even set up autopay, automating the process and making it worry-free. You won’t even need to watch your mail for checks. Best of all, with Stax’ auto-update feature, credit cards are automatically updated before they expire so you never miss a payment.
Predictable Cash Flow
When setting up a payment plan for your clients, be clear about what the expectations are on the installments. That way, both you and your clients know exactly what to expect on a month-to-month basis. Or, you and your customer can agree on a payment plan based on milestones.
A home contractor could set up a payment plan of 30% upfront as a deposit, with the remainder invoiced as work is done. Or a small law firm can set up a 6-month invoicing schedule for a client to keep their costs predictable and stable. Payment plans can be the solution for clients who can’t pay high up-front fees for services. You can track these invoices through a virtual terminal, with total visibility into a client’s payment history. This is especially helpful if a client tends to be late on their payments.
Payment plans offer a sense of comfort for clients through their predictability. No one likes being surprised with a bill, and as a business owner, an unstable cash flow is just as bad. They also help you with collections and cash flow. Once you’ve agreed on a plan with your client, you’ll know exactly when to anticipate an influx of cash – especially if your client uses autopay.
Contact a Payments Consultant today to learn more about how you can make invoicing and billing simpler for your business.
