Payment plans
A payment plan splits a bill into instalments that are collected automatically from the client's saved card or bank account. While a bill is on a plan, overdue reminders for it are paused.
Why it helps
Turn a bad debt into a paying one. Clients who can't pay in full can still pay you, in smaller amounts.
No follow-up needed. Instalments are collected automatically, and failed ones are retried.
Clients can set it up themselves. Offer plans on a bill and let the client choose when they pay.
Before you start
Automatic payments must be turned on (see Setting up debtor management).
If you use Xero or QuickBooks, it must be connected, and settlements must be started.
The client needs a saved card or bank account.
Step 1: Create a plan template
Plans are set up once as templates, then used on any bill.
Go to Templates → Payment Plans.
Create a plan and fill in:
Field | What it means |
|---|---|
Plan name / Client summary | What you and the client see |
Frequency | Weekly, Fortnightly, Monthly or Quarterly |
Plan ends | After a set number of payments, or When the bill is paid |
Number of payments / Amount each time | How the bill is split |
First payment (days) / Day of month | When instalments start and fall |
Deposit | No deposit, a Percentage of the bill, or a Fixed amount |
Payment methods | Card, bank account or both |
Minimum bill / Maximum bill / Minimum payment / Maximum days | Limits on which bills the plan can be offered for |
If a payment fails | Failures allowed (default 2), Retry after (default 3 days), Remind before (default 3 days) |
Step 2: Put a bill on a plan
There are three ways to put a bill on a plan.
From the bill (including bills opened from the Debtors queue)
Open the bill and click Payment plan.
Choose the Plan, the First payment date, and Collect from (the saved card or bank account).
Click Start payment plan.
Note: Any instalment due today is taken as soon as you start the plan.
From the Payment Plans tab
Go to Bills & Payments → Payment Plans and click New payment plan.
Choose By client or By bill, then select the unpaid bill(s).
Let the client choose
On a bill, turn on Offer payment plans and choose the Plans on offer. When the client pays in the portal or accepts a proposal, they can choose Pay in instalments. They then confirm with their name and tick I authorise these payments on the dates shown.
How instalments are collected
Instalments are collected on their due dates, at the same times as other automatic payments.
If you turn on Payment plan instalment reminder, the client gets an email before each instalment.
There's no extra fee on instalments.
Track plans on Bills & Payments → Payment Plans. Instalments that are behind show under Payments → Plan arrears.
If an instalment fails
The instalment is retried after the Retry after number of days.
Each failure counts towards Failures allowed.
Once that limit is reached, the plan ends. The remaining balance is then due straight away, and overdue reminders resume.
The client gets a Payment plan instalment failed email if you've turned it on.
Changing or cancelling a plan
On the plan, you can:
Change plan: change the remaining payments
Cancel plan: stop the plan. Overdue reminders resume if the bill is still unpaid.
Start again: restart a plan that has ended
Payment plans and debtors
While a plan is active, the bill shows On a payment plan on its Reminders tab, and the workflow doesn't run for it.
In the Arranged and unarranged report, bills on a plan count as arranged.
Still need help?
Contact us