Klarna and FreshBooks have partnered to let small businesses offer customers installment payments directly on invoices.
Klarna, which describes itself as an everyday finance network, has made its payment methods available inside the invoicing and payment flows of FreshBooks, a business management software used by freelancers and small service-based teams.
FreshBooks users do not need any additional setup to activate the option, and Stripe powers the integration. Its services are offered in Canada and the U.S. FreshBook’s patrons have a chance to showcase Klarna’s solutions at the payment stage. Both have focused on companies that send invoices to customers.
The options available for FreshBooks clients include three types of payment: immediate full payment, interest-free payment in four parts, or financing if the payment is possible later. There are some instances relevant to those services written regarding various trades.
There is an example of a plumber sending a bill for his job and accepting full payment for his services. A mechanic can send a bill for a moderate repair and offer his client an opportunity to pay for services in four equal installments. A construction worker has a possibility of financing for big projects.
Because the payment methods sit inside FreshBooks’ existing invoicing and payment flows, merchants can process and reconcile payments within their business software rather than handling them separately.
Both companies framed the integration around the cash flow pressures small businesses face. Lisa Robinson, Head of Partner Success, U.S. East Coast and Canada at Klarna, said that getting paid reliably and on time is what keeps small businesses and entrepreneurs in the U.S. and Canada running. Customers gain payment flexibility while FreshBooks users retain predictable cash flow.
Jeffrey Imm, GM of Financial Services and Payroll at FreshBooks, said that offering BNPL as a payment choice has been shown to substantially increase the speed of small business cash flow and revenues. It also removes the risk of businesses not being paid for their products or services. He also noted that processing and reconciling payments within business software benefits both merchants and their customers.
The partnership places Klarna’s BNPL and financing options inside software used by small, service-based businesses, extending its reach to merchants who invoice customers directly. For FreshBooks, the integration adds a payment option for users who want to offer BNPL without separate onboarding. Because Stripe powers the integration, merchants do not need to configure anything further.
Under this model, the end customer chooses when and how to pay. According to the companies, the merchant still retains confidence in when payment will be received.
