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.