Should you offer buy now and pay later payment terms, auto-billing and contracts for your customers? This is a good question and one that is raised by a lot of our service-based clients. The reality is that many large companies who perform services in a wide variety of construction and home improvement industries do this.
Is buy now pay later a good idea? To be competitive, the short answer is yes.
The long answer is, yes as long as you are able to maintain cash flow, reduce overhead carrying costs and improve your bottom line. So, how does buy now pay later work? With TransAct’s services, payment tool kit and software, it is easier than ever to offer this highly competitive payment service option.
With the current market conditions, home services and construction work are at an all-time high to serve the “seller’s” real estate market. The benefits of buy now pay later means that you are able to serve more customers with payment plans while being able to plan out revenue over the next several months.
How Does Buy Now Pay Later Work?
Maintain cash flow by establishing customer-friendly payment terms. This can help with maintaining a level and predictable monthly revenue stream. Offering your customers the ability to take larger costs and break them down into smaller, manageable payments due each month can help them make the decision to do a big project. When they pay it off over time, they are able to enjoy the home improvement, while as a business owner, you know that you will have the revenue month after month from a steady stream of project work.
Benefits of Buy Now Pay Later for Construction Businesses
Reducing overhead is a big benefit. Simple enrollment in a payment plan can reduce unnecessary office paperwork, invoicing and bookkeeping. Once the customer’s recurring billing plan is established, the invoices are automatically issued, and the payments are processed without having to do anything.
Buy Now Pay Later for Home Improvement Services
This is also great for home improvement services businesses.
Recurring billing along with normal monthly reconciliation and integration to QuickBooks further streamlines this process. This leaves your team free to serve the customer with billable hours, creating nicer home environments instead of completing unnecessary back-office work.
Improve Your Bottom Line
Predictable revenue is key in this process, knowing that you will have steady cash flow and revenue streams is essential. Being able to maintain and commit to staff makes you an employer of choice and more capable of serving your customer with their needs.
TransAct has implemented this program with a growing number of service, construction and home improvement contractors in the last year, making their business more profitable and easier to manage while improving their revenues. With credit card, E-check, EFT and other non-contact payment options, you are able to offer more to your customer and be the service provider of choice. Contact us today for more details.