Looking to offer flexible payment options to your clients without the risk? Here’s everything you need to know about Dubsado’s latest payment integrations and how they can benefit your creative business.
Understanding Buy Now, Pay Later in Dubsado
Dubsado has introduced two powerful payment options backed by Stripe that revolutionize how creative entrepreneurs can handle client payments. These new features – Klarna and Affirm – allow business owners to receive full payment upfront while offering clients flexible payment plans. This significant update addresses a common pain point for service-based businesses: balancing immediate cash flow needs with client payment flexibility.
Klarna: The Universal Option
Key Features
Available in multiple countries
Offers four interest-free payments to buyers
Requires minimum invoice amount of $50
Processing fee approximately 6% plus $0.30 per transaction
Cannot be combined with auto-pay or scheduler invoices
Best Use Cases
Klarna shines for short-term projects with quick turnaround times. It’s particularly valuable for:
Course creators selling digital products
Design projects with brief timelines
Quick-turnaround services
Products or services delivered within four months
Limitations
While Klarna boasts wide availability, it comes with certain restrictions. The service cannot be used with:
Scheduler invoices (like mini sessions)
Recurring payments
Auto-pay enabled invoices
Payment plans already in place
Affirm: The Extended Payment Solution
Key Features
Available in US and Canada only
Offers multiple payment terms up to 36 months
Handles invoices from $150 to $30,000
Similar processing fees to Klarna (approximately 6% plus transaction fee)
More strict business eligibility requirements
Payment Structure
Affirm offers multiple payment options:
Four interest-free payments every two weeks (for purchases up to $250)
Extended financing options up to 36 months (for invoices $150-$30,000)
Business Eligibility
Not all businesses qualify for Affirm integration. Eligibility depends on:
Business classification in Stripe
Geographic location
Type of services offered
Business history and standing
Making the Right Choice for Your Business
Consider Your Business Model
Before enabling either payment option, evaluate:
Typical project timeline
Average invoice amount
Current payment plan offerings
Client payment preferences
Profit margins (to account for processing fees)
When to Use Klarna
Klarna works best for businesses that:
Need immediate payment for quick-turnaround projects
Offer products or services under $1,000
Want to provide short-term payment flexibility
Have international clients
When to Use Affirm
Affirm is ideal for businesses that:
Offer high-ticket services
Have longer-term engagements
Want to provide extended payment options
Are in the United States or Canada and eligible to use the service
Implementation Tips
Pricing Strategy
With processing fees around 6%, businesses should:
Factor fees into pricing structure
Consider the value of immediate payment
Evaluate the potential for increased bookings
Monitor the impact on cash flow
Client Communication
When implementing these payment options:
Clearly communicate payment terms
Highlight the benefit of interest-free payments
Explain eligibility requirements
Set clear expectations about delivery timelines
Making the Decision
While these payment options can boost bookings and improve cash flow, they’re not right for every business. Consider your specific needs:
If you already offer payment plans that span your service delivery period, Klarna might not add significant value
For high-ticket services with extended delivery times, Affirm could provide a competitive advantage
Businesses with tight margins should carefully evaluate the impact of processing fees
Remember, you can toggle these options on and off as needed, allowing you to test their impact on your business without long-term commitment. The key is understanding your clients’ needs and your business requirements to make an informed decision about implementing these payment features.