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Process of accepting Purchase Orders for SaaS company


#1

I’ve got customers asking to pay with a purchase order. Currently, all of our recurring subscriptions are automated with credit card payments. Anyone out there accepting purchase orders for recurring monthly/annual payments? If so, what is your process like?

Thank you in advance.


#2

If payment amount is less than $300 I would not bother. PO’s are slow, not always paid by customers, and payment processors may charge additional commission.


#3

If you want an idea of what the process is then look here under “Purchase Orders” https://blog.asmartbear.com/selling-to-large-companies.html

As above - would definitely NOT do monthly, annual only and then only above certain $ value (for me $500 but I occasionally make exceptions).

You may be tempted by certain payment processors that say they can handle PO’s - but don’t be fooled they will do an automated attempt at collecting payment then give up easily leaving the problem with you again.

You may think that you can just turn off whatever service the company has to force payment but whilst this is a good last resort doing it too often will piss off your real customer as they will be equally baffled and impotent in the face of the byzantine bureaucracy and deliberate incompetence that goes on inside large company accounts payable departments.


#4

I concur with what others have said here: we only support POs for accounts on a minimum yearly term and only when the value is significant. In our case the value is only there on our highest tier plans ($2500/yr or more).