Guest Author - Quick Fee
When it comes to your accounting business, working with clients is the rewarding part. The part that’s not quite as enjoyable is to make sure you get paid on time or having an uncomfortable conversation with a long-term client who hasn’t paid yet.
As many as one in 10 invoices is not paid on time, and that delay can put additional stress and strain on your firm.
Fee financing can change that for your accounting firm by making it easier for your clients to pay you, and easier for you to manage your cash flow, too.
How does fee financing work?
Clients can sometimes put off necessary work because they don’t have the capital available up front to pay for it. Offering fee financing allows you to give your client the gift of time and flexibility, while ensuring your bills still get paid.
Fee financing makes it easier to collect the money you’re owed by giving your clients the opportunity to set up a structured payment agreement. This program gives the client flexibility to pay on an installment basis while reducing the impact of a longer payment period to your bottom line.
When you offer a client fee financing as a payment option, QuickFee will provide your firm full payment on their invoice immediately. However, your client doesn’t have to provide all that money upfront, and instead will be given the option to pay their total outstanding amount over a span of three to 12 months.
What kinds of businesses can use fee financing?
Fee financing is ideal for accounting firms, legal service providers and any other businesses that offer professional services.
It’s no secret that many companies prioritize their physical inventory to be able to keep their day-to-day business moving forward and revenue coming in. Payments for professional services can be easier for companies to put on the back burner, because they believe you can wait to receive payment and that you’ll give them flexibility to focus on staying in business and generating revenue.
Fee financing has counterparts in other industries as well, including “care credit” for medical clients and insurance premium funding in the professional liability sector. Simply put, fee financing for accounting firms, and similar services in other industries, relieve the strain that comes with waiting for clients to make payments.
How does fee financing benefit my firm?
Offering fee financing as a payment option for your accounting firm can give you and your clients the best of both worlds.
You receive your payment right away, which allows you to keep your firm running smoothly, and they get the convenience of a longer time frame to pay your invoice in full. Instead of allowing sticker shock over a high-dollar invoice to discourage clients from work, fee financing makes paying for professional services feel more manageable to the client.
When you offer fee financing, it benefits your clients by helping with their comfort level when it comes to new projects. Instead of trying to ensure they have cash upfront to secure your services when an opportunity arises, you can agree on a total billable amount and allow them to pay it flexibly through fee financing.
Using a fee financing service can also help you reduce the potential for bad debt and avoid carrying your clients’ expenses as part of your overhead.
You give them the freedom to take advantage of potential opportunities and partnerships while reducing stress over whether they can afford them. When you get your payments in-hand faster, you can use those funds for business development, marketing or other growth-minded expenses.
And, when you make it easier for your clients to pay you, your staff spends less time on collecting paper checks and following up on late payments. It takes the same amount of time to follow up with a client on a $500 invoice as it does on a $50,000 one, so offering an option like fee financing can help you focus and prioritize your staff’s efforts, and make sure their time spent on chasing down payments is being used most efficiently.
You’re able to grow your business, and to help your clients grow theirs at the same time.
Want to learn more?
Sign up for a quick demo and learn how QuickFee can help you increase cash flow, eliminate aging receivables, win more business, cut transaction costs, and create an overall better payment experience for your clients.