You can pay in installments while your vendor gets paid in full. The first time you pay a bill with installments can take a few minutes longer, but after that, it’s just like making any bill payment on Melio.
Once a business is approved, every eligible bill payment after that can be made in installments.
This article will guide you through:
- Paying bills with installments for the second time on.
- The email notifications you get from Melio.
- How installment payments appear in Pay.
Here’s how to pay a bill in installments after your business has been approved:
1. Sign in to Melio.
2. Click Pay in the left sidebar.
3. Add a bill to pay or select one from your inbox.
4. When asked to select a payment method, approved businesses and eligible amounts will have the option to Pay In Installments.
5. Click Pay In Installments to see the repayment terms. Click Continue.
6. Choose the repayments term you prefer. Click Continue.
IMPORTANT NOTE: Understanding the final installment’s repayment terms.
The installment terms include the following:
- Number of installments- The number of repayments the bill payment be divided into. Every repayment term is different. Read this overview of installments payment with Melio.
- Amount/mo- The total amount that will be deducted from your account each month. This amount includes the fee based on the terms you selected. So there won't be additional costs.
- Total fee (%)- The percentage and the total fee amount in USD for the payment.
- 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.
7. When you select repayment terms, you see the suggested deduction date of the payment to the vendor, and the deduction date for the first repayment. The first repayment date is automatically scheduled for 30 days after the payment is sent to the vendor. Also, a pre-selected bank account. Click Continue.
NOTE: Change the pre-selected fields.
Payment date- The pre-selected date for the payment is a suggestion to make sure it will get to the vendor on time. You can change it by clicking the calendar icon .
The first installment date will be 30 days after the payment is sent to your vendor.
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.
Bank account- Paying with installments is only available with a verified bank account.
The bank account that is already connected to your Melio account is automatically selected for the repayments.
If you have more than one bank account connected, click Edit and select one from the dropdown list.
8. (Optional) Leave a memo for your vendor. The default is the invoice number. Click Continue.
9. Review and confirm the bill payment using installments. This summary includes the following details of the installment’s repayment terms you selected:
a. Installments- The bank account from which the repayments will be deducted.
b. Installment deducts- The date of the 1st repayment. To see the deduction date of the rest of the repayments click View installments.
10. 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.
11. Click Confirm and schedule payment to finish.
That’s it! You have successfully scheduled your first payment with installments.
The email notifications you get from Melio
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:
How installment payments appear in Pay
Pay In 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 schedule 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 Future installment deductions on the right, click Reload to see the details of the repayments.
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 PAID BY, you can see the details of the repayments.
Click View details to see information about your next repayment.
Scheduled tab- In the Scheduled tab, you see your first installment repayment under Installments + number of the repayment.
On the right, under PAY BY, you can see the details of the repayments.
Click View installments to see information about the payment to the vendor.
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 PAID BY, you can see the details of the repayments.
Click View details to see information about your next repayment.
Scheduled tab- 30 days after the payment is sent to your vendor, 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 BY, you can see the details of the repayments.
Click View installments to see information about the payment to the vendor.
Stage 4: When the 1st repayment is deducted.
Paid tab- In the payment details, you can see what repayments were deducted.
Scheduled tab- In the repayment details, you can see what repayments were deducted and when the next one is.
Stage 5: When the installments are paid in full.
Paid tab- In the payment details, you can see that all repayments were paid in full.