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Offering Klarna


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Wondering if anyone has thought of/is currently offering Klarna as an option for customers paying a larger sum of money for a job such as soft washing, power washing or roof cleaning?

Seems that a lot of businesses (large and small) are offering Klarna now and a lot of customers appear to be using it too.

A customer has the option to either pay over 3 monthly interest free instalments (for example, instead of paying a £500 quote upfront they would pay £166.66 x 3) or pay in 30 days time interest free.

Here’s two links for anyone maybe not familiar with Klarna https://www.klarna.com/uk/business/
https://www.klarna.com/uk/business/payment-methods/

Would be good to hear people’s opinion on this ✌🏻
 

 

***Edit: By choosing either payment option, say the price of the job was £500 for example, you get paid the full £500 up front by Klarna (minus a 5.4% transaction fee which goes down as a business expense) and if the customer has opted for the 3 monthly payment plan, that agreement is then between them and Klarna. So Klarna handles the payments the customer is due from there on in.

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Master Jedi Alejandro

Interesting, but nothing on there website about there cut. 
 

I do like the idea. Get paid in full and let them chase the bad payers 😂

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scottish cleaning service

When folk want a £500 job done then they usually have the money set aside. Problem with paying later is that the novelty has worn off and the problem is paying for it. Since I began window cleaning I paid for everything cash, no cash then I waited till I had saved up and that's the reason I'm doing so well, no tic. No worries about paying off a DD nor collecting cash. If they don't pay I just drop them and forget about it, getting too busy to worry about it. Looking at buying another Falch nozzle for my driveways and patios because of the work coming through.

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Master Jedi Alejandro
1 hour ago, scottish cleaning service said:

When folk want a £500 job done then they usually have the money set aside. Problem with paying later is that the novelty has worn off and the problem is paying for it. Since I began window cleaning I paid for everything cash, no cash then I waited till I had saved up and that's the reason I'm doing so well, no tic. No worries about paying off a DD nor collecting cash. If they don't pay I just drop them and forget about it, getting too busy to worry about it. Looking at buying another Falch nozzle for my driveways and patios because of the work coming through.

 

1 hour ago, dazmond said:

Personally I want payment in full within 14 days for any add on jobs that I do.....most pay on the day of clean....👍

Yeah Klarna pay you in full and then deal with collection from customer, according to there website. They also say they take the hit for no payments, chasing money etc. So depending on there cut it might be worth while. 

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2 hours ago, Master Jedi Alejandro said:

Interesting, but nothing on there website about there cut. 
 

I do like the idea. Get paid in full and let them chase the bad payers 😂

From what I can see, for the x3 monthly instalments they take a 5.4% cut, so a £500 payment for example would be £27 - but then that would go down as a business expense.

Can’t see anything regarding a cut for the 30 days later payment 

Yeah, you’ve hit the nail on the head. You as a business get paid up front, then whatever happens after that is between the customer and Klarna. It gives a lot of people who maybe need/want work done but don’t have the upfront available money, another option to attain your service. There’s so many major corporations using Klarna nowadays and it’s starting to really branch out into smaller, local businesses too.

 

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1 hour ago, scottish cleaning service said:

When folk want a £500 job done then they usually have the money set aside. Problem with paying later is that the novelty has worn off and the problem is paying for it. Since I began window cleaning I paid for everything cash, no cash then I waited till I had saved up and that's the reason I'm doing so well, no tic. No worries about paying off a DD nor collecting cash. If they don't pay I just drop them and forget about it, getting too busy to worry about it. Looking at buying another Falch nozzle for my driveways and patios because of the work coming through.

If someone sets up the 3 monthly instalments, you still get paid up front by Klarna, then they deal with the customers three monthly payments. I agree with you that the majority of customers would still have the money to pay upfront, but you’d be surprised at the amount of people who prefer paying stuff in instalments because it’s interest free or they maybe don’t have the money available upfront.

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1 hour ago, dazmond said:

Personally I want payment in full within 14 days for any add on jobs that I do.....most pay on the day of clean....👍

Klarna pay you in full, and then they deal with the monthly payments with the customer. Their cut is 5.4% from what I can see, but it would go down as a business expense.

There’s a few salons and hairdressers round my way offering it as an option for payment now (found this out through my girlfriend drawling on about getting new hair extensions 🤣) for people paying hundreds of pounds for hair extensions and beauty treatments etc.

Of course getting paid on the day via bank transfer, cash and so forth would be everyone’s preferred payment method, but it’s always good to look at alternatives, assuming it’s going to benefit yourself and your business 😃

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There are many people very wealthy because people borrowed money from them. This looks similar to Invoice discounting where you basically sell a company your invoices and they pay you, minus their charges. If you're a newbie and your cash flow is tight it might be worth having a look. Personally wouldn't go there and would only take the business on if they paid a large percentage, 50%, and balance on completion.

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scottish cleaning service

I have started getting some money up front for material and such like, if they struggle to pay for the material then it doesn't look good for the balance. Had an interesting conversation with a woman I went to see about quoting for a patio clean. She said I might as well spend my money on getting it done right because what else can I spend my money on? The penny dropped there and then with me anyway. The part of the money pie that used to go on holidays abroad are getting spent on the house, caravans, campervans and everything else. Just found the reason why I'm so busy with big add-ons like roof cleaning. fwiw

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Master Jedi Alejandro
8 hours ago, Wind o kleen said:

Would you get the customer to apply first before starting the job? obviously ther will be credit checks ,  

I've been offered to use Klarna when buying stuff before. Basically at checkout you can either checkout as normal or there was the option to pay Klarna. So you could have it as a option you offer, then mention it when you provide the quote. If they ask to use it set them up, otherwise just carry on as normal, whatever that is.

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