Making a bill payment with installments for the first time on Melio

  • Updated

Sometimes a bill payment is too big to pay at once, but your vendor won’t accept a partial payment. For such cases, Melio lets you pay on your terms with installments. You repay in a way that works best for you, and your vendor still gets paid on time, in full. 

 

How does it work?

It’s as easy as making any other payment on Melio.

The first time you schedule a payment with installments might take a few minutes longer because of the application process. Due to compliance requirements, only business owners can apply for and make payments with installments. So, you’ll be asked to add the details of all the business owners (25% and up).

From the second time on, there’s no need to enter these details again.

 

TIP: Collect your owners' details in advance

These are the details you will need to enter before scheduling your first payment:

  • First name.
  • Last name.
  • Date of birth.
  • Social security number (SSN) or Individual Taxpayer Identification Number (ITIN).
  • Personal address.

This article will guide you through:

 

Now, let’s make your first payment with installments:

1. Sign in to Melio.

2. Click Pay in the left sidebar.

3. Add a bill to pay or select one from your inbox.

select_a_bill_to_pay.jpg

 

4. When asked to choose a payment method, you may see an option to pay with installments. This means that the business met the first criteria and may be eligible for installments with Melio. 

To be fully eligible and make payments with installments, the business owner needs to apply.

 

IMPORTANT NOTE: Understanding the initial installments offer

The installments offer includes:

a. Vendor gets [amount] up front- The amount your vendor will get (the total amount of the bill). 

Remember: Your vendor gets the full amount when you schedule your payment. You pay it in pieces for the number of months you selected.

b. From- The lowest amount you’ll pay each month, including the fee. 

Remember: This is an initial offer and the terms may change after the full compliance check and the number of installments you choose.

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5. Select Installments and then click Continue.

 

The application process starts now.

6. If you’re an owner of the business, click I’m an owner of this business. Then click Continue.

 

IMPORTANT NOTE: Only owners can apply for and pay bills with installments because of compliance regulations. 

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7. Confirm your business details. Make changes if needed. Click Continue.

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8. Enter the details of every person who owns more than 25% of the business. The owner who is applying to make the first payment is the OWNER/APPLICANT. Click + Add another owner to enter the details of every business owner.

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9. Click Check my rate to continue.

 

Our financing partner powering installment payments, Credit Key, will run a soft credit pull on the owner applicant’s account only, to approve the business for installments and make a final installments offer. This might take a few minutes.

 

IMPORTANT NOTE: What is a soft credit pull?

Credit Key will check the owner applicant's credit report as part of the background check before making an offer. The purpose of it is to decide how likely it is for them to get paid back by you. The most important thing to remember is that it doesn’t affect your credit score.

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10. Select the number of installments you want. This is the final installment offer and includes the exact amounts you repay.

 

IMPORTANT NOTE: Understanding the final installment offer.

The installment terms include the following:

a. Number of installments- The number of months you will repay. Every repayment term is different. Read this overview of installments payment with Melio.

b. Monthly repayment amount- The total amount that will be deducted from your account each month. This amount includes the fee so there won't be additional costs.

c. Total fee- The total fee amount in USD for the payment.

d. Total amount- The total amount you’ll pay ultimately after all the repayments are paid. This amount includes the payment to your vendor and the fee.

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11. Click the black arrow to select a bank account for the repayments from the dropdown list. Click Continue.

NOTE: Paying a bill with installments is only possible with a bank account.

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12. Select the delivery date. Click Continue.

IMPORTANT NOTE: When will my repayments be deducted from my account?

The first repayment will be deducted from your account 30 calendar days after the date your vendor gets paid.

From the 2nd repayment on, it will be deducted 30 calendar days after the previous repayment. So, your repayments will be deducted on the same date every month until fully repaid.

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13. (Optional) Leave a memo for your vendor. The default is the invoice number. Click Continue.

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14. Review and confirm the bill payment with installments. This summary includes the following details of the installment terms you selected:

a. Installments- The bank account from which the repayments will be deducted.

b. First installment deducted on- The date of the 1st repayment. To see the deduction date of the rest of the repayments click View installments.

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15. If you agree to the terms and conditions outlined by Credit Key, check the box I have read and agree to the Credit Key Business Loan Agreement at the bottom of the summary.

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16. Click Confirm and schedule payment to finish.

 

That’s it! You have successfully scheduled your first bill payment with installments. 

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The email notifications you get from Melio

Bill payment scheduled notification

When you schedule to pay a bill with installments, you get an email confirmation that includes the installment terms. Here’s what the email looks like:

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How installment payments appear in Pay

Paying with installments is possible thanks to Melio’s ability to split the payment process between what the vendor gets and what you pay. 

To make it easier for you to monitor your cash flow, the payment and repayments are reflected separately in Pay. 

There are 5 different stages until your payment and repayments are paid in full:

 

Stage 1: When you schedule the bill payment with installments.

Right after you’re scheduling the bill payment, it will appear under the Scheduled tab. This is the payment to the vendor and includes the amount they will get from you.

Under PAY FROM MY on the right, you can see the details of the repayments.

Scheduled_tab-_payment_to_the_vendor.jpg

 

Stage 2: When the payment to the vendor is processed and the 1st repayment is scheduled.

Paid tab- Your payment moves to the Paid tab with the status Paid on. In the progress bar, you can see the status SENT and the date.

On the right, under PAY FROM MY, you can see the details of the repayments.
Click View details to see information about your next repayment.

paid_tab-_payment_to_the_vendor_is_processing.jpg

 

Scheduled tab- In the Scheduled tab, you see your first installment repayment under Installments + number of the repayment. 

On the right, under PAY FROM MY, you can see the details of the repayments. 

Click View installments to see information about the payment to the vendor.

scheduled_tab-_first_repayment.jpg

 

Stage 3: When the vendor gets paid and the 1st repayment is scheduled.

Paid tab- Your payment stayed in the Paid tab but added the label COMPLETE because the vendor got paid in full. In the progress bar, the status changed to DEPOSITED.

On the right, under PAY FROM MY, you can see the details of the repayments.
Click View details to see information about your next repayment.

paid_tab-_payment_to_the_vendor_complete.jpg

 

Scheduled tab- 30 days after the vendor gets paid, your first installment is deducted. In the Scheduled tab, you see your next installment repayment under Installments + number of the repayment. 

On the right, under PAY FROM MY, you can see the details of the repayments.
Click View installments to see information about the payment to the vendor.

scheduled_tab-_first_repayment.jpg

 

Stage 4: When the 1st repayment is deducted.

Paid tab- In the payment details, you can see what repayments were deducted. 

paid_tab-_next_repayment.jpg

 

Scheduled tab- In the repayment details, you can see what repayments were deducted and when the next one is.

scheduled_tab-_next_repayment.jpg

 

Stage 5: When the installments are paid in full.

paid_tab-_payment_and_repayments_complete.jpg

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