There are different ways of setting up payment processes in a Virtual Assistance business model. The Virtual Assistant has to judiciously analyze which method suits him the best.
Traditional invoicing/ Net 30days- The Virtual Assistant issues an invoice at the specified time periods or at the end of the project whatever is agreed upon before the project begins. This method of payment usually works best with the large corporate clients. In reality clients do not pay within 30 days term and it takes approximately 45-60 days till the cheque arrives through mail & is cleared. Since the business with large corporates is lucrative, it is worth the wait.
Traditional invoicing/ due upon receipt– Issue of purchase order or an agreement where terms are due upon receipt helps Virtual Assistant to get paid quicker.
Credit card payment- A merchant account is set up by a Virtual Assistant & payment is collected from the client using a credit card. The Virtual Assistant keeps the client’s credit card number and charges it as soon as the project is completed and the invoice approved. Without setting up a merchant account credit card payments can also be processed through PayPal.
Retainer- Virtual Assistant can also collect a retainer from their clients. The client already makes a payment beforehand so he mostly uses the time. This is a nice way for the Virtual Assistant to estimate how much he or she will work in a month as the client has already committed for certain number of hours.
