To help you get started with payment plans, we've outlined a few of the most popular examples.


In this article


Pay in full

A payment plan can be used to set a due date on any invoice, even if the client will pay in full. Using a payment plan allows you to send automated payment reminders.

In this payment plan:

  • Payment of the full invoice total is due as soon as the payment plan is applied to the invoice.

👋 Here are a few tips...

  • Since there is only one installment, you can use either the divide equally or the percentage (100%) due amount option.

  • A pay in full plan pairs well with recurring invoices. Use the due date trigger "after payment plan applied to invoice" so that a new due date will be set on each invoice generated.

  • Change the due date trigger to "after contract signed by client" if you'll be using this payment plan with a proposal-contract-invoice.


Fixed deposit

This plan is popular with event industries and others who always collect the same deposit amount, no matter what the final invoice total will be.

In this payment plan:

  • A fixed payment of $500.00 is due when the client signs the contract.

  • The remaining balance will be due 3 days before the project start date.

👋 Here are a few tips...

  • You can customize the timing of the second due date to fit your needs! Any of the project date triggers are great options here.

  • Use the divide equally option for the second installment. It will fully cover the remaining invoice balance, even if you add to your client's invoice after they pay their deposit.

  • If there will be more than one additional installment for collecting the remaining balance after the first payment, use divide equally for any equal payments. You can also use percentage installments where necessary.


Equal monthly payments

The divide equally option makes it easy to set up any number of equal installments in a payment plan. The number of equal installments and how they are spaced out is up to you, but here's an example with three.

In this payment plan:

  • The first equal installment is due when the client signs the contract.

  • The second equal installment will be due 1 month later.

  • The third equal installment will be due 2 months after the contract was signed.

👋 Here are a few tips...

  • If you want to bill your client monthly indefinitely or for more than a year, consider setting up a recurring invoice instead. Payment plans only work well when you know the total number of installments up front, since the invoice total will need to cover all of those installments.

  • You can use any trigger for the due dates, but just remember there is no option for "after the last payment." That's why the timing of the triggers increases from 0 days, to 1 month, to 2 months.


Milestone or deliverable payments

TBD due dates are perfect for projects where you base payments on milestones or deliverables.

In this payment plan:

  • The first 50% installment is due as a deposit when the client signs the contract.

  • 25% will be due after the first design proofs are delivered, TBD.

  • The final 25% will be due before the final designs are delivered, TBD.

Once you know when a client's payment should be due, just open their invoice and click on a TBD installment to change the due date to a fixed date. The due date will update live on the client's invoice.

⚠️ Heads up! Based on the timing of your reminders, it is possible that a reminder will be sent to your client as soon as you select a fixed date. For example, if you have a reminder set to send "0 day(s) before due date" and you set the fixed date to today, then that reminder will send immediately.


FAQ

Should I use percentage or divide equally amounts in my payment plan?

Whenever possible, we recommend using the divide equally option. Using divide equally will keep your payment plan flexible in case you decide to add on to your client's invoice after they have already made a payment.

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