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invoicing and payments

Disclaimer: This is not formal advice. Get accounting advice. This covers concepts you should discuss.

How you choose to get paid is super important

Don’t assume because you have a contract you’ll get paid.

Some companies take forever to physically pay the bills. There are some hacks you can implement this in many circumstances.

Here’s what it looks like:

Where people start:

  • Tell the client to pay them when they can.
  • Give them a PayID or bank account details on a payment invoice.
  • Spend ages chasing payments when they don’t pay.
  • This model is OK if you don’t get paid much. But its not scalable at all.

Better:

  • PayPal invoices.
  • Stripe payment links.
  • Manual distribution.
  • Some insurance / protection built in.

Getting again:

  • Professional digital invoices
  • Multiple payment options
  • Some automation
  • Recurring capabilities

Billing in the digital age:

  • Automated payment systems
  • Subscription revenue
  • Global payment acceptance
  • Money while you sleep

The big three in payment architectures

PayPal:

The good:

  • A lot of people have it
  • Works in 200+ countries
  • Buyer protection (builds trust)
  • No monthly fees
  • Easy to start

The bad:

  • 2.9% + $0.30 per transaction
  • Holds money randomly
  • Terrible for subscriptions
  • Looks unprofessional
  • Customer service hell

The terrible:

  • Can freeze your account
  • 180-day holds possible
  • Chargebacks favor buyers
  • Not great for B2B

Best For:

  • Getting started
  • International clients
  • One-time payments
  • Under $1000 transactions

What you need to do to setup PayPal:

1. Business account (not personal)
2. Add business info
3. Create invoice template
4. Set up payment buttons
5. Enable instant transfer
Time: 30 minutes

Stripe:

The good:

  • Most professional option
  • Incredible API
  • Supports everything
  • Great for subscriptions
  • Scales infinitely

The bad:

  • Can be a steep learning curve
  • They want 2.9% + $0.30 fees
  • Rolling reserves for new accounts
  • Slow initial approval until you are trusted

Why it’s great:

  • Great integration with lots of platforms
  • Automatic invoicing
  • Subscription management
  • Global payment methods
  • Amazing documentation
  • It’s a trusted way to pay and familiar for users.

Best for:

  • SaaS products
  • Subscription services
  • Professional image
  • Scaling businesses

Square: The hybrid hero

The good:

  • Online + offline payments
  • Free point of sale app
  • Next-day deposits
  • Built-in invoicing
  • Great for services

The Bad:

  • 2.9% + $0.30 online
  • Limited internationally
  • Less developer-friendly
  • Fewer integrations

The sweet spot:

  • Service businesses
  • Mixed online/offline
  • Appointment booking
  • Quick setup needs

Best for:

  • Consultants
  • Local services
  • Event sales
  • Simple needs

How you present an account can have a significant bearing on whether you’ll get paid

Amatuers will send an email:



Here is this months payment costs:
Website stuff: $500
Thanks

Kind regards,

Here’s what a pro will send



INVOICE #2024-001
Date: March 15, 2024
Due: March 29, 2024

Bill To:
ClientCorp Inc.
123 Business Ave
City, State 1234

Services Rendered:
Website Development (March 1-15)
- Homepage design and development: $1,500
- Mobile optimization: $500
- SEO implementation: $500
- Content management setup: $500

Subtotal: $3,000
Tax (10%): $300
Total Due: $3,300

Payment Terms: Net 14
Late Fee: 1.5% monthly

Payment Options:
[Pay Now Button - Stripe]
[Pay Now Button - PayPal]
Bank Transfer: [Details]

You want to keep records of your invoices

Through the different levels:

Level 1: Basic templates

  • Google Docs/Word template
  • Manual numbering
  • Email manually
  • Track in spreadsheet

Level 2: Invoice software

  • MYOB
  • Xero
  • Quickbooks

Level 3: Integrated systems

  • Stripe Invoicing
  • QuickBooks + Payment
  • Automated reminders
  • Payment processing
  • Accounting integration

Level 4: Full Automation Trigger: Project completed Action 1: Generate invoice Action 2: Send to client Action 3: Follow up in 3 days Action 4: Process payment Action 5: Update records Action 6: Send receipt Human effort: Zero

Thinking about how to structure payments

Can you get paid upfront?

You might say:

Contract Signed ↓ 50% Deposit Invoice (Due immediately) ↓ Payment Received ↓ Work Begins ↓ Work Completed ↓ Final 50% Invoice ↓ Payment Received ↓ Files Delivered

Then at least you have some milestone payments?

How you could use words to improve the probability of getting paid

Terms to use:

  • "Due upon receipt" (immediate)
  • "Net 14" (14 days max)
  • "2/10 Net 30" (2% discount if paid in 10 days)
  • "Late fee: 1.5% monthly"

Terms to avoid:

  • "Net 60/90" (you're not a bank)
  • "Pay when you can" (never)
  • "After project success" (undefined)
  • "Revenue share only" (huge risk)

Conclusion

It’s important to get paid. Don’t be a patsy.

Getting paid isn't about asking nicely. It's about building systems that make payment the easiest option. Every successful business runs on cash flow. Master your payment systems, and you master your business.

Start today. Set up one payment processor. Create one invoice template. Send one payment link.

Then watch how different business feels when money flows in automatically.

Now go get paid.