Offering online payment, pay now, services
If you send online invoices that link to payment services like Stripe or GoCardless, it’s easy for your customers to pay immediately on any device. When they open the invoice, they simply click on the ‘Pay now’ button. It makes life easier for your customers, and you’re more likely to get paid faster.
Online payment services cost nothing to set up, though there’s a small fee for each transaction. But when you look at the improved cash flow, online payments make it better for you and your balance sheet.
How much faster do you get paid?
When customers are given a ‘pay now’ option, invoices issued through Xero are settled:
Using invoice financing
If you need the cash and you can’t wait for customers to pay you, you could consider invoice financing. It’s faster and more flexible than taking out a loan.
Invoice financing is offered by some finance companies. They’ll typically advance you 80 percent or 90 percent of your unpaid invoices, so you get most of what’s owed to you then and there, instead of waiting for your customer to pay. And you only repay the amounts financed as and when the customer payments come in.
Invoice financing isn’t a regulated industry so you need to find a reputable provider and do your homework into the fees and other terms. It’s worth talking with your accountant first about whether invoice financing is a sensible option for you.