Accountants switching to payment plans for client fees
Accountant firms are increasingly allowing clients to spread fee payments in response to growing financial pressure on businesses, new research from Premium Credit, a leading provider of finance, shows.
Its study found more than two out of three (68%) firms allow some clients to pay fees monthly or over an extended period of time. Just under a quarter (24%) specifically rule it out while another 8% are unsure.
However, the research found 80% of accountants would consider allowing the payment of fees monthly or over an extended period while just 14% would not and 6% are unsure. When it comes to clients who are struggling to pay their fees, the corresponding figures from accountants are 80%, 18% and 2% respectively.
Premium Credit’s Fee Plan, which is free to use for accountancy firms, enables clients to spread the payment of invoices over a number of months up to a year for a competitive interest rate. Accountancy firms using the service gain exclusive access to Premium Credit’s practice tax funding service enabling them to spread the cost of tax bills.
Jennie Hill, chief commercial officer, Premium Credit (Specialist Lending) said: “Substantial numbers of accountancy firms are already offering payment plans to some clients who are struggling to pay fees. It makes sense as it ensures clients do pay outstanding invoices and similarly it would make sense to use a service which is free and takes the administrative burden away from accountants.”