Payment Options
3 Ways To Pay
1) In Full On A Card - If they do this, they get the whole thing done in one swoop and if they use a CC they get points! Note: If they are about to put it on a debit card, if you remind them that they get points if they use a CC then they will normally be grateful for that so they get their points. They can pay in cash. They can use a check if you trust them.
2) PayPal Credit - This option is best for people with a 700+ credit score and want pay it off within 6 months. This is a credit card so their is no locked in monthly payment involved with this option.
PayPal Pay Monthly
Note for PayPal: When paying in full using PayPal we may get what is called an “E-Check.” This is when they have paid but PayPal is verifying the funds. You can go ahead and sign them up even if it is an e-check.
3) Finance Through WD - The last and final option. This would be for people who have good credit, have money, etc. but they are buying a house or something and can’t run their credit. If they do finance through us, we use the an invoicing platform for this.
Generally speaking and at the bare minimum: The terms are half down and the balance split in three monthly payments.
3A) If they are financing through us they need to have a card on file that doesn’t expire before their payments are up AND they need to click the auto pay box under where they enter their card info into square.
3B) If they finance through us you need to write down the payment terms in the notes section of Active Campaign.
HERE ARE THE TERMS WE OFFER PEOPLE FOR WD FINANCE WHO QUALIFY!!
Example: $500 due on 4/21. $500 due on 5/21. $497 due on 6/21.
Questions for Finance Through WD
1) “How much are you short?”
2) “How soon can you pay back the rest?”
3) “Can you do it faster?”
Considerations for WD Financing
-Would you personally lend this person the same amount of money as the program you are selling if they were to use the same terms to pay you back personally?
-If they didn’t get approved, why did they not get approved? Is it their income or do they have a crappy credit history?
-Do you trust them to make payments to us monthly even AFTER the service has been completed?
-Are they worthy of borrowing our money?
Money Rules
A rule for money is you always want it in-full and as fast as possible. If you want to get more money you need to follow the rules of money and what I just said is one of the first rules of money. So, when you are doing evals and it comes time to get paid, always try to get paid in full and on the day of. This is particularly important if you are crafting a payment plan. We want the biggest deposit they can afford the day of. Then we want the remainder as fast as possible. Can they pay every Friday when they get paid? Every other week? Don’t try to space payments unless it is absolutely necessary.
Getting Creative With Payments
Using the rules of money, we want as much of our money up front and the remainder as quick as possible. A good strategy for WD Finance is to get the down payment and then setup the monthly payments on the days they get paid so we can auto bill their card. If the payments are larger you can split the monthly payments into two and do two payments a month on their paycheck dates. Example: You get $1000 down and have a balance of $997. This means the payments are $332 for 3 months. Instead of doing $332 once a month, you can do $166 on the 1st of the month and $166 on the 15th. For some clients, this can be an easier pill to swallow rather than $332 once a month.
Sometimes people don’t have credit and want to pay on their cards but don’t qualify for financing through us or have credit.
Example: We had a young lady with bad credit but we wanted to get training. She had $200 for a deposit. So we did 2 payments of 448.50 for her next two payments. We did one a week after the deposit. Another the week after.
Or you will have an affluent client who wants to pay in 2 payments. This is okay as well if you trust the person.
Another option is to have the person put a large amount down on the program and split the remainder into 3-4 payments weekly, bi-weekly, or monthly or something. Example: Say it is a $1500 program. They put $800 down. We can split the 700 into 3 payments of $233.
Payment FAQ
Q: Can I put it on two different cards?
A: Yes. We will send two invoices. Or they can do one amount on one card and another amount on another card through FM.
Q: Will this run my credit?
A: PayPal does a hard pull. Lending USA does a soft pull.
Other Payment Notes:
PayPal has two finance options. They have PayPal Credit and Pay Monthly. PayPal Credit is a credit card with 6 months same as cash. Pay Monthly is a loan that has a set term of months, a set payment and a set interest rate.
PayPal Credit does a hard pull if you apply. Pay Monthly does a soft pull to pre-qualify and only does a hard pull if you accept the loan from PayPal.
If they plan on paying it off within 6 months, PayPal Credit will be the best option for them and the least expensive because it is interest free for the first six months. If they plan on taking longer than 6 months, PayPal Monthly may be cheaper interest than the credit card interest on PayPal Credit.