How offering client payment plans may be costing you time and money

In today’s climate, businesses across a wide range of industries are facing cash flow challenges.  Temporary relief measures in locked down states notwithstanding, broad-based government support for businesses has largely ended, and many are navigating tax repayment plans.

As a business community, we all want to step up and help our clients, and it makes sense for our own businesses. However, if your business model is built around lump-sum payments, offering payment plans could be costing you time and money.

Cash flow could be impacted

The first major consideration should be the cash flow implications for your business. If you’ve been working on upfront or lump-sum payments, you probably manage your cash flow in line with this. By offering partial payments, your cash flow will likely take a short-term hit as your outgoings remain the same while the flow of revenue changes.

Admin can quickly become a productivity drain

Secondly, there are the admin costs. Depending on your accounting processes and software, it may take a significant shift in how you do things to accommodate partial payments. You now require the technology and people resources to create and manage multiple invoices to receive the same money. From initial set-up to chasing payment, this can become a productivity drain, taking time and resources away from revenue-generating activity.

It poses risks to your business

Thirdly, of course, there is more risk for your business. No one wants to see a business fold, but sadly today it’s not out of the question, even for established businesses. You want to support your clients to grow and thrive, but you also don’t want to be left with unpaid invoices if they close their doors.

The solution is simple

The good news is that there is an easy solution. Selectpay is a business-to-business buy now, pay later solution that acts as a cash flow management tool on both sides of the equation. You get paid upfront, and your client can spread their payments over four monthly instalments for a fixed 4% fee and no hidden charges. The best part is that we manage it all for you, so all you need to do is let them know they can ‘Selectpay it’.

Our partners find that offering this solution supports their clients while increasing access to their services and opening up new opportunities. In addition, many partners say their clients choose to use Selectpay for their other business invoices, because it is so easy and convenient.

So, it’s not simply about providing another payment option; it’s about supporting your clients to grow and thrive to keep our economy in recovery. If you are interested in becoming a Selectpay partner, get in touch with the team. It costs you nothing, it doesn’t take any resources from your business, and we can have you set up and ready to go in just 48 hours.

Four reasons you should be offering your clients a BNPL solution

Allowing your clients to pay their invoice using Buy Now, Pay Later (BNPL) was a good idea before COVID-19, but in today’s climate, it’s virtually essential. Here’s why.

#1 A BNPL can manage cash flow on both sides of the equation

While we are seeing the reintroduction of some temporary relief measures, broad-based government support for businesses impacted by COVID-19 has largely ended. As a result, organisations across a wide spectrum of industries are on tight budgets, with many also on tax repayment plans.

Of course, the government can’t continue to support businesses forever, so it’s critical that we all work together to ensure we can thrive as a business community.

From legal and accounting, to marketing and recruitment, many professional services require upfront payment, which can be cost-prohibitive right now. However, by enabling your clients to make smaller payments over a longer period, you’re allowing them to manage their cash flow while protecting yours. It’s a snowball effect that helps you and your clients to prosper as our economic recovery continues.

#2 A BNPL can increase access to your product or service

Offering a BNPL solution isn’t just about getting your invoice paid upfront; it’s about ensuring your clients can access your product or service when they need it and pay for it in a way that supports them.

Selectpay was born in the recruitment industry because we understood that while clients see the value of expert recruitment services, the upfront payment could be a deterrent, especially when coupled with onboarding costs. This rings true for every business – clients may see the value in your product or service, but if it impacts their cash flow, they may not be able to access it.

BNPL gives your clients options when it comes to covering the cost of your services. This has the potential to boost uptake, increase repeat business and grow your client accounts. It can also help to widen your client base, attracting new business that may have otherwise been put off by the cash flow impact of upfront payment.

#3 A BNPL can reduce your admin time and headache

It’s fair to say that most businesses see the value in supporting their customers, and many are looking to offer flexible payment terms. Of course, we all want to help our customers, but running your own payment plans not only impacts your cash flow it can create an admin headache. You may need extra resources to monitor and follow up payments, and your accounting software and processes may need to change to accommodate a new way of working.

A BNPL solution, like Selectpay, can take all of this out of your hands. You receive upfront payment, and we manage the rest with a simple, user-friendly solution that supports your clients.

#4 The right BNPL is flexible and supports your clients

While some may argue that their clients can already defer payment by using a credit card, I believe this simply contributes to creating more debt.

Unlike most finance options that have fixed terms, with Selectpay’s BNPL solution, you can build a customised program that works for your clients and helps both of you grow.

Our standard offering breaks your client’s payments into four monthly repayments. However, depending on the size of your invoices, service delivery timeline, terms of business and operating model, you might want to offer an extended payment period or different repayment amounts. Selectpay can customise a BNPL solution that works for your business and your clients.

If you are looking to support your clients to grow and thrive without impacting your bottom line, as well as increase access to your services and widen your client base, get in touch to find out how Selectpay can help. You can get started straight away, it doesn’t require any resources from your business, and best of all – it won’t cost you a thing.