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Get paid via instalments with GoCardless for Xero

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Written by Guest Author

Accepting payment via instalments can bring huge benefits to your business. In the past few years, we’ve heard from small businesses all around the world that they want a simpler way of doing that. I’m excited to share with XU Magazine readers that GoCardless for Xero now has the ability to quickly and easily split a Xero invoice into multiple GoCardless payments.

How instalments help you

1. Instalments make it easier for your customers to do more business with you

Your customers are likely to spend more money with you when they can pay by instalments, as they can spread the cost of your goods and services out over time. Klarna, the online payment platform, suggests that average order value can increase by as much as 55% when offering instalments to your customers.

2. Instalments can help you grow your customer base

If you sell high-cost goods and services, or sell to cost-sensitive customers, you need to offer payment plans to suit. By allowing customers to spread the cost of a payment into more manageable amounts over time, you can help bring on board new customers that may have previously been deterred by the cost.

3. Instalments make it easier for you to get paid

While bank debit makes for a smoother payment experience for both you and your customer, cost-sensitive customers may be averse to it for high-value invoices. By offering them the ability to pay via instalments, you can lower the risk they may see in the upfront payment and are more likely to have them opt in, making payment easy and automatic.

4. Instalments help you improve customer relationships

The smaller, more manageable payments offered by instalments allows you to better tailor your billing experience to your customers, giving your business an advantage over competitors. By offering a more customised, superior billing experience, you deliver a better overall customer experience, enabling you to retain your customers for longer.

“Accepting payments via instalments helps our clients spread the cost of their course over a timeframe that suits them and means we don’t have to set up separate invoices for each payment… which is a huge time saver for us…”

Shane Broadberry, Director, IACT

Want to take the pain out of getting paid? Try GoCardless for Xero today

Take the pain out of getting paid

Research into business payment preferences shows that the preferred method for paying business-to-business instalments is bank debit. 47% of UK businesses want to pay instalments via bank debit, compared to just 28% which want to pay via corporate card.

Offering Instalments with GoCardless for Xero

With the new Instalments feature in GoCardless for Xero, you can split a single Xero invoice amount into multiple GoCardless payments.

You can customise the number of instalments to offer, and how frequently you want them collected (e.g. monthly, weekly, etc.). Once set up, the status of your invoice will be updated to show the number of outstanding instalments.

“It’s great that [the] GoCardless product has now expanded to include so many features beyond the core Direct Debit. GoCardless for Xero has made an incredible difference to our business and our clients. Now being able to control instalment options around one off invoices for ad-hoc work means we can easily help our clients spread costs, taking the worry away.”

Jonathan Bareham FCA, Director and Co-founder, Raedan

Learn more about how instalments work in GoCardless for Xero

Spend less time and hassle on payments admin with instalments

No longer do businesses need to resort to sending separate, recurring invoices to offer instalments to their customers. Say goodbye to that additional admin and extra payment notifications for both your business and your customers – offering instalments with GoCardless for Xero streamlines the process for you both.

Split a single invoice into multiple instalments with ease. Your customer is notified just once at the start of the schedule, then each payment collected will be allocated to the invoice automatically until the full balance is paid.

“This is a great option that could help manage the overdue invoices as we can now offer different options to the customers that struggle with payments. We tested this feature with one customer and it was all perfect, the payment was collected as scheduled and there were no issues with the reconciliation.”

Mayra Badcott, Accounts, Torbay Olympic Gymnastics Club

Ready to take the pain out of getting paid?

Start offering instalments with GoCardless for Xero today.

Already using GoCardless for Xero?

Read about switching to GoCardless for Xero when you use Dashboard subscriptions or plans.

Do you already have dashboard subscriptions set up?

If you already have subscriptions set up on the GoCardless dashboard, but would like to move these over to instalments through GoCardless for Xero, we can assist with that.

Contact our support team here and we’ll assist with cancelling your subscriptions in the GoCardless dashboard, so you can set up these payments again as Instalment schedules in GoCardless for Xero

We can ensure that your customers will not be notified of the cancellation.

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About the author

Guest Author

Written by Florian Reinhardt