Should Birth Professionals Offer Payment Plans? Pros, Cons, and the Best Way to Set Them Up
For birth professionals, pricing services can be a delicate balance. You want to ensure your work is valued while also making your services accessible to clients who may need financial flexibility. Offering payment plans can be a game-changer, but it’s essential to do it strategically to avoid financial headaches. Let’s break down the pros, cons, and best practices for setting up payment plans in your birth business.
The Pros of Offering Payment Plans
✅ Attract More Clients – Some expectant families may not be able to pay in full upfront but could afford smaller installments. Payment plans open the door for more bookings.
✅ Increase Your Income Stability – Recurring payments create predictable income, helping smooth out months where you have fewer clients.
✅ Make Your Services More Accessible – Birth support is valuable, but not everyone has the ability to pay a lump sum. Payment plans allow you to serve a wider range of clients.
✅ Encourage Commitment – When clients commit to a payment plan, they’re often more invested in following through with your services.
The Cons of Offering Payment Plans
❌ Risk of Missed or Late Payments – Some clients may fall behind, requiring extra follow-up and creating cash flow gaps.
❌ More Administrative Work – Managing payment schedules, reminders, and overdue payments can add to your workload.
❌ Potential for Clients Backing Out – If a client stops paying midway, you might not be able to recover the full amount for services already provided.
Best Practices for Setting Up Payment Plans
✔ Set Clear Policies – Outline payment deadlines, late fees (if applicable), and consequences of non-payment in your contract.
✔ Require a Deposit – Always ask for an upfront deposit to secure the booking and ensure commitment.
✔ Automate Payments – Use invoicing software (like Stripe, Square, or HoneyBook) to set up automatic payments so clients don’t have to remember due dates.
✔ Limit the Number of Installments – Offering 2-4 payments (instead of stretching payments too far) ensures you get paid in a timely manner.
✔ Be Upfront About Costs – Transparency is key. Make sure clients understand their total investment and payment schedule from the start.
How to Set Up Payment Plans on Different Platforms
Depending on what platform you use to collect payments, you’ll have different options for setting up and automating payment plans. Here’s a breakdown of how to do it on some popular platforms:
Square
Use Square Invoices to set up installment payments.
Offer clients the ability to save their payment method for auto-billing.
Integrate Square’s Afterpay option to let clients split payments into four interest-free installments.
Stripe
Set up recurring payments through Stripe Billing to automatically charge clients on agreed-upon dates.
Offer payment plans through payment links or subscriptions.
Consider integrating with tools like ThriveCart or Kajabi for a seamless checkout process.
HoneyBook
Create custom payment schedules within a client’s contract.
Set automatic reminders for upcoming payments to reduce late payments.
Track payments and send automated follow-ups if a payment fails.
PayPal
Enable PayPal Pay Later for flexible client financing.
Set up recurring invoices or subscriptions to collect payments over time.
Wave Apps (Free Option)
Send invoices with installment options and automatic reminders.
Accept credit card payments and auto-deposit into your bank account.
How to Protect Yourself When Offering Payment Plans
While payment plans can help your business grow, it’s important to protect yourself financially. Here are some additional ways to safeguard your income:
🔹 Use Legally Binding Contracts – Clearly outline the payment schedule, consequences of missed payments, and what happens if a client cancels midway. A lawyer-drafted contract can help prevent disputes.
🔹 Include a Late Fee Policy – Even if it’s small, a late fee helps encourage on-time payments and sets a precedent for professionalism.
🔹 Offer Incentives for Paying in Full – Some clients may opt to pay upfront if you offer a small discount or bonus (like an extra prenatal session or a postpartum check-in).
🔹 Use a Payment Plan Manager – Platforms like Dubsado and 17Hats can help you manage multiple clients on payment plans without the administrative hassle.
🔹 Send Automatic Payment Reminders – Reduce non-payments by using automated emails or texts to remind clients about upcoming charges.
Examples of Payment Plans for Birth Professionals
Still unsure how to structure your payment plans? Here are a few common setups:
1️⃣ Two-Payment Plan: 50% upfront, 50% due before the birth.
2️⃣ Three-Payment Plan: 33% upfront, 33% midway through pregnancy, 33% before the due date.
3️⃣ Monthly Payment Plan: Divide the full cost into equal payments leading up to the birth (ideal for clients booking early).
4️⃣ Post-Birth Payment Option: 50% upfront, 25% midway, 25% after birth (higher risk but may attract clients with financial constraints).
Should You Offer Payment Plans in Your Birth Business?
The decision to offer payment plans depends on your financial situation, risk tolerance, and administrative capacity. If structured well, they can make your services more accessible while ensuring steady cash flow. However, if not managed properly, they can lead to inconsistent income and added stress.
By implementing clear policies, automating payments, and requiring a deposit, you can set up a system that benefits both you and your clients.
