How it Works
Credit Based Billing Plans include the following details:
Name: Select a plan name that is descriptive enough for you to distinguish between them. This plan title will be shown to your clients.
Description: This should provide your client with some additional information about the plan.
Monthly Credit: The amount of spendable money the client has each month for space calendar bookings. Any overage hours will be billed the following month, at the hourly rate set by the calendar(s).
Credit Based Billing Plans allow clients to purchase a fixed amount of credit (spendable money) to be used on space bookings throughout the month. As they book hours within different spaces, credit is deducted according to the hourly rate of that calendar.
Clients on a Credit Based Billing Plan prepay for their plan at the beginning of the month. If a client uses more credit than their plan provides, then they will be charged an overage fee for those hours according to the space’s hourly rate. They will see the overage fee for these hours on the following month’s bill.
Credit-based plans do not roll over month to month. Clients will lose anything unused at the end of the month.
To remove a credit balance, read more here.
To provide a discount or incentivize your credit-based plans, check out the Jan's Jelly example below.
Real World Examples
Dan's Donuts is a customer of The Rusty Knife, a new kitchen in town. The Rusty Knife has a Credit Based Monthly Plan of $1000.00. They have two kitchen spaces, one which is $25/hr (Kitchen A) and the other is $10/hr (Packing Room B). They also have a meeting room for which there is no charge ($0/hr) but for which they require scheduling to avoid double booking.
In February, Dan's Donuts is charged $1,000.00 for his Credit Based Plan. He uses the following spaces:
Kitchen A: He uses for 30 hrs which at $25/hr costs him a total of $750.00.
Packing Room B: He uses for 10hrs which at $10/hr costs him a total of $100.00.
This equals $850.00 for Dan and because he has $1,000.00 in his Credit Based Plan he owes $0 additional money.
In March, Dan is still on the $1,000.00 Credit Based Plan but has the following usage:
Kitchen A: He uses for 40 hrs which at $25/hr costs him a total of $1000.00.
Packing Room B: He uses for 10hrs which at $10/hr cost him a total of $100.00.
This totals $1,100.00 which means Dan will be charged a $100.00 overage charge on his April Invoice.
Jan’s Jelly is another customer of the Rusty Knife. They are a startup so The Rusty Knife gives them a 20% discount on the credit-based monthly plan. This means they pay $800.00 for $1,000.00 in booking credit. To configure this, a recurring monthly credit of $200.00 is applied to the client's profile. To learn how to setup a recurring monthly credit see this article.
In February, Jan’s Jelly is charged $800.00 for the $1,000.00 Credit Based Plan. Jan’s Jelly then uses the following kitchen time:
Kitchen A: She uses for 30 hrs which at $25/hr costs her a total of $850.00.
Meeting Room: She uses for 10hrs but there is no charge for that.
Packing Room B: She uses for 15hrs which at $10/hr cost her a total of $150.00.
This equals $1,000.00 for Jan, and because she has the $1,000.00 in her Credit Based Plan, she owes $0.00 additional money for her February usage on March’s invoice.
Looking for other plan types? You can also offer your clients a certain number of hours per month with Time Based Billing Plans.
Still have questions about Credit Based Billing Plans? Lets chat!