Getting paid faster through installments – that might sound a bit contradictory at first. How would you get paid faster when your invoice is paid in several payments instead of one?
In this article, we’ll show you how you can get paid faster, while telling you more about when to use which kind of Payment Schedule. We’ll also explain how you can make everyone happy in the end – your customers with better service and yourself with safe and fast payment for your work.
Down payments reduce risk and cover project expenses
Down payments, where your customer first pays part of the total invoice before you start work, are very common for services and large projects. The down payment serves not only to secure your customer’s commitment to paying, but also allows you to purchase any materials needed for the execution of the project.
Here’s an example of how down payments can help you and your business:
Charlie started his own business as a professional painter a couple of years ago. The Millers would like to plaster a room in their house and tasked Charlie with this project. He gives them a quote of £1250, of which £150 is to hire scaffolding from an external company, £200 are for the materials and £900 are for the actual work. Both the scaffolding company and the materials have to be paid upfront. Charlie therefore asks for a down payment of £350. He uses Zervant to create a down payment with a few simple clicks. He decides to send both invoices separately – one for the down payment to be paid upfront, and the other for the remaining amount, to be paid after finishing the project.
Custom payment schedules offer greater flexibility
There are a lot of cases when an invoice does not, or should not be paid in one go, but instead split across several installments. Custom payment schedules are just the right feature for this. You can divide the amount into a maximum of 12 equal or different payments, which you can sum up on a single invoice or split across several invoices. Payment Schedules are also useful when invoicing large sums on money. By offering installments, you provide your customer with the option to pay for your work bit by bit, thus allowing them a more flexible way to pay. The feature is also very handy for projects that consist of several stages or sub-projects.
The following examples demonstrate in more detail how you can benefit from using Custom payment schedules:
Elizabeth runs a small shop where she sells dresses that she designs and manufactures herself. Over the last few years, she has specialised in festive and bridal wear. Anna, her customer, plans to get married in a couple of months and has designed her dream dress together with Elizabeth. The dress will cost £1800, which is a lot of money for Anna to spend in one go. As part of her excellent customer service, Elizabeth has offered Anna a payment plan with six instalments of £300. Using Zervant, she first created an invoice detailing both material costs and working hours. Then she split the total amount into six installments on the same invoice using Custom payment schedules.
David is a freelance web designer. A small company has hired him to create a new company page for them. The project will take 50 working hours at an hourly rate of £30. He hasn’t worked with this particular company before, and doesn’t know their payment behaviour. David’s way of working usually includes one revision loop after the first handing over of the website. As such, he decides to split the total amount into three partial payments: a down payment of 20%, a payment of 60% at the handing over of the website, and a final payment of 20% after carrying out any corrections. Fortunately, with Zervant he can do this very easily. He creates an invoice for the total amount of £1500 and then adds the Custom payment schedules, including the different amounts and due dates, with just a few clicks.
Customise your own payment situations
There are a lot of situations where down or partial payments can revolutionise the way you get paid. You can offer your customers better service or more secure payments, while Payment Schedules allow you to more planning security and an improved cash flow, allowing you to decide yourself when you want to get paid. Try out Payment Schedules with our Premium plans now!