Monthly billing is better

Topic: Billing & Support |

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It makes sense to say that most people pay their bills on a monthly basis. I’m referring to overhead costs when running a business. An electric bill can be high if you paid it yearly and you would actually make money if you paid it monthly by investing your cash flow and made interest on it. Lets get to the point. It is easier for you to bill your clients monthly.

Pros Of Billing Monthly

1. You add cash flow to your company.

2. You pay the majority of your bills on a monthly schedule.

3. Your clients don’t feel locked into a contract when they get to an order form and see they can only pay yearly.

4. If your firm ever goes up for sale, a purchaser is going to look for the monthly cash flow. If you do not have it, they will only assume your yearly contracts are not going to renew and will pay you only what you are worth on a monthly schedule.

5. This can reduce the damage that credit card fraud can do to your company. If the false user signs up for a year, you won’t find out that it is fraud for at least 60 to 90 days. If you bill monthly, you will know by the next cycle if the card works.

Cons Of Billing Monthly

1. Monthly merchant account fees. These can add up.

If we can think of any more cons we will be sure to add them. The pros simply outweigh the cons. It is the more conservative route to take, but it will pay off in the end.

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