Recurring payments ensure you’ll always get paid on time, and it helps take manual work off your clients’ plates as well. They’ll appreciate being able to pay automatically, rather than remembering each due date.
Do you find yourself having to constantly remind your clients when their payment due dates are coming up? If you have clients who work with you over a long period of time, this can be a hassle for both of you and significantly slow down your payment processing.
Instead, many clients these days expect some form of recurring billing. It’s the payment method they’re already used to using for things like magazine subscriptions and streaming services.
Learn more about recurring payments and how to get set up so you can get paid faster.
- What are recurring payments?
- How recurring payments make your life easier
- Who are recurring payments for?
- How to get set up with recurring billing
- Leverage multiple payment methods to offer the best experience
What are recurring payments?
Recurring payments are automatic payments your clients have authorized you to collect from their credit card or bank account. The same amount is automatically deducted on the monthly due date (aka payday for you!)
How recurring payments make your life easier
Setting up recurring payments is easy, and the benefits are great. You’ll get paid faster and your clients will also enjoy the seamless experience. You can count on these benefits to make your life easier:
- Save time—Forget manually re-sending invoices each month and reminding your clients to pay. Recurring payments also let your clients enter their payment details once, so they don’t have to worry about it again.
- Improve cash flow—When you accept recurring payments, you’ll have a more consistent cash flow. You know exactly how much to expect on your clients’ different due dates, and there’s little risk that you won’t have that cash when it’s due.
- Get paid quicker—When your clients’ payment due dates are coming up, they’ll automatically be billed. You don’t have to worry about money coming in after the due date, or sending payment reminder emails to ensure you get paid.
- Provide a better client experience—Clients approve the recurring payment schedule once and never have to worry about missing a payment again. It’s less hassle for your clients, less work for you, and a win-win for everyone.
Slow payments and missing payments are by far the biggest issue for freelancers,” said Caitlin Pearce, executive director of Freelancers Union in New York City. “Freelancers experiencing non-payment lose an average of $6,000 annually.
Who are recurring payments for?
You might not need to process recurring payments if you offer goods and products, but if you sell services, it’s an excellent payment method for you and your clients.
Freelancers like copywriters, designers, and more, can bill monthly retainers to clients in seconds, saving hours in back-and-forth paperwork and manual payment tracking. Recurring payments are also especially helpful for businesses with subscription-based services, like business coaches who offer long-term retainers, workshops, educational memberships, and more.
How to get set up with recurring billing
To start accepting recurring payments, look for an online payment software that includes it as an option. These days, most payment processors include it as an option. To pick the right payment system, you can also look for software that connects payments with the rest of your clientflow.
With HoneyBook, for example, you can accept card payments as well as ACH transfers. You can also use invoice templates and online contracts to complete your booking process. Beyond that, HoneyBook lets you capture interested leads, qualify them with sales collateral, and manage your project from start to finish.
Once you’re set up to collect payments, update your invoices to accept recurring payments (if they’re applicable to your client). Your clients can provide their payment information once, then have their card on file for autopay. If needed, you can always stop the payments with the click of a button.
Leverage multiple payment methods to offer the best experience
At the end of the day, your payment process should be seamless and meet your clients’ expectations. Determine which payment methods would be best for your client base. Do you usually accept a retainer fee, followed by a final payment? Do you charge monthly subscriptions? Also consider payment options, like debit cards, credit cards, and ACH transfers.
Once you know what your clients need, it’s easier to find the right options and software to facilitate your payments.
With HoneyBook, you can treat your clients to a variety of payment options and set custom payment schedules in each invoice. Offer your clients a more personalized, exceptional experience.