# Payment plans

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
   [https://onboardme.help.center/article/1144]).

 * 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.

 1. Go to Templates → Payment Plans.

 2. 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)

 1. Open the bill and click Payment plan.

 2. Choose the Plan, the First payment date, and Collect from (the saved card or
    bank account).

 3. Click Start payment plan.

> Note: Any instalment due today is taken as soon as you start the plan.

From the Payment Plans tab

 1. Go to Bills & Payments → Payment Plans and click New payment plan.

 2. 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

 1. The instalment is retried after the Retry after number of days.

 2. Each failure counts towards Failures allowed.

 3. 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.