Why You Should Offer Payment Plans For Clients_Web Ready

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.

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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.

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