This is going to be a challenge that businesses across the country and even the world are going to have to contend with and find ways around. While some companies maybe in the fortunate position to accommodate with the pressures on customers and offer discounts or flexible payment options, others may need to secure payment quickly to support their own business’s needs and cash flow.
One solution that is favorite at present is payment by instalment plans. When you see that a customer can’t or doesn’t want to pay in full upfront – if the customer is unable or unwilling to pay – so it can be really helpful to break the sum owed into more manageable payments over an agreed period of time.
The considerations around payment plans? Who do they benefit, and should your business offer them?
Why offer payment plans?
Payment plans can be used as a great negotiating tool when faced with a customer who is trying to justify the investment in your product or service.
While some may not be able to afford or pay in full, paying a smaller amount over set amount of months can be far more manageable and ensure that cash continues to be available in their business.
Offering these payment plans can also help with your relationship with that customer. If they’re also struggling, they’ll understand the pressure on your business too. But by being sympathetic to their situation and working with them to agree an instalment plan, they will no doubt appreciate this stance and serve to strengthen the relationship going forward, which could lead to repeat business and added customer loyalty.
If you decide to go ahead with payment plans, we can deal with the entire process on your behalf. Just simply pass over the contact details of your customer and we will find a suitable finance deal for them.
The best part about this is that you will get paid in full upon issuing your invoice, with no further risk to your income. The finance provider lends the money to the customer and collects all the repayments.
Should your business offer payment plans?
Given these economic circumstances at present, one a approach would be to offer instalment plans to customers who genuinely need more time to pay.
Given the effect of Covid 19 is likely to last many more months, and it’s going to be highly likely that payment plans will become increasingly common in the coming months as many more businesses struggle to manage their cash flow. The key thing is to ensure you do what’s best for your company and your customers.