As an online payment platform serving over 400 million users worldwide, PayPal offers more than just a way to quickly send money to friends and family. For freelancers, entrepreneurs, and other business owners, PayPal‘s robust invoicing capabilities provide professional-grade tools to securely request payment for products and services.
Compared to invoicing platforms like Freshbooks or QuickBooks, PayPal’s free invoicing feature allows you to get set up and start creating sleek, customizable invoices in just minutes. And recipients can easily view and pay your PayPal invoices online without needing their own PayPal account.
In this comprehensive guide, you’ll learn how to master PayPal invoicing to scale your business, get paid faster, and look credible in front of clients.
Benefits of PayPal Invoices
Before diving into the step-by-step process, let’s look at why PayPal invoicing outshines alternative options:
- It‘s completely free to use with any PayPal account type
- Invoices look professional with customizable templates and branding
- Send unlimited invoices with detailed item/service lines
- Recipients can securely pay invoices by credit card without a PayPal account
- Get paid up to 2 days faster with instant transfers to debit cards
- Set up automatic payment reminders and recurring billing
- Works seamlessly if you already use PayPal for other transactions
For most solopreneurs and small business owners, PayPal checks all the boxes for an easy-to-use, feature-rich invoicing solution.
Step 1: Access the Invoicing Page
First, log into your PayPal account at paypal.com. From your Account Overview page, click the “Send & Request” link followed by “Create Invoice.”
This will bring you to the Invoicing page containing all past invoices as well as options to create an new invoice or view invoice settings.
Step 2: Enter Recipient Details
Start a new invoice by clicking the blue “Create Invoice” button then entering the recipient’s email address or selecting an existing customer from the drop down menu.
You can save preferred customers under invoice settings to quickly select them when creating new invoices. This saves time for recurring clients.
Step 3. Customize Invoice Details
The Details section allows you to fully customize the invoice contents.
Start by giving the invoice descriptive title so the recipient knows what it‘s for.
Next, add items or services by entering a description, quantity, and amount for each line. The total will automatically update on the right.
You can also attach additional files, add discounts, notes or terms if needed.
Step 4. Adjust Invoice Options
Don’t skip the Options section – this lets you configure important settings for the invoice:
- Payment Terms: Set how many days the recipient has to pay
- Allow Tip: Clients can add a voluntary tip for great service
- Allow Partial Payments: Recipient can pay in installments over time
- Auto-reminders: Send automatic email reminders when payment is due
Tweaking these options helps ensure you get paid accurately and on time.
Step 5. Finalize and Send Invoice
With your invoice fully configured, click “Preview” to verify all details are correct.
When ready, click the blue “Send” button to deliver the invoice to the recipient’s email instantly.
They will receive a professional invoice branded with your business logo and containing the items/services, rates, totals, and terms you customized.
PayPal Mobile App Invoicing
In addition to the main website, you can also create single invoices directly from PayPal’s mobile app for iOS and Android devices.
The mobile app only allows sending one-time invoices, so the web interface is better for managing recurring invoices or using templates. But the app can be handy for quickly invoicing clients while away from your computer.
To send a mobile invoice:
- Tap the “Send” icon from the mobile app’s Home screen
- Select “Invoice” then enter the recipient and details
- Tap “Send Invoice” when finished
It contains similar flexibility as the web version minus a few advanced functions.
Customizing Your Invoice Settings
Diving into PayPal’s Invoice Settings unlocks more robust options for customization and automation.
Under Settings you can:
- Fine-tune taxes, currencies, languages
- Create reusable invoice templates
- Manage customer profiles for quicker billing
- Add your business logo and information
- Enable automatic email invoice reminders
Tweaking these settings to your preferences streamlines sending polished, professional invoices.
Adding Multiple Items or Services
Most invoices will contain more than one charge line item. Luckily, PayPal makes it simple to add multiple items/services and set custom rates for each.
When filling out invoice details, click the “Add Item or Service” link below the first item to keep adding additional lines.
This expands the invoice to include additional rows for inputting the item name, description, quantity, rate, amount, and tax for each charge.
You can add as many item lines as needed in this manner until capturing all products/services being billed on the invoice.
Receipt Options for Recipients Without PayPal
Some clients may not have their own PayPal account to pay invoices from. No problem!
By default, PayPal includes the option for recipients to securely pay invoices by debit card or credit card without needing a PayPal account of their own.
They simply enter card details right on the invoice to submit payment to you quickly.
You can disable this option in Invoice Settings if desired, but enabling it increases the likelihood your invoices get paid promptly.
Sending Recurring Invoices
If you bill the same client on an ongoing basis, PayPal can completely automate sending recurring invoices.
Setup only takes a few clicks:
- Check “Save as template” when making the initial invoice
- Give the template a name and click Save
- Open “Recurring Invoices” tab from Invoicing page
- Enable recurrence for the template
Now the invoice will automatically go out based on your set billing frequency, eliminating repetitive manual work each cycle!
What To Do If an Invoice Goes Unpaid
Despite handy payment reminders, some recipients inevitably forget or fail to pay invoices occasionally.
If an invoice is past due, PayPal will display options to resend the invoice or send a collection letter.
Ultimately, you may need to directly follow up with the client by phone or email. Polite but firm communication is key to getting paid what you’re owed.
For severely late invoices, you may need to threaten or undertake collections/legal action if other tactics are unsuccessful. But those measures should be last resorts when pursuing rightful payments.
PayPal Invoices: The Convenient Payment Solution
PayPal’s robust invoicing capabilities provide entrepreneurs, freelancers, and other business owners with an easy yet powerful solution for getting paid quickly and professionally.
Leveraging PayPal to send customized invoices, receive payments across channels, automate recurring billing, and get reminded of due balances can streamline your operations while keeping business cash flow strong.
So tap into this built-in tool that comes free with any PayPal account — reducing administrative burdens so you can get back to doing what matters most: growing your company.
Further Reading:
Frequently Asked Questions
Can someone without a PayPal account pay my PayPal invoice?
Yes! One of the benefits of PayPal invoicing is recipients can easily pay by credit/debit card without needing their own account.
Do invoices cost money to send out?
Nope! Sending PayPal invoices is totally free. Additional fees would only apply if/when the invoice gets paid successfully.
Can the invoice contain our company logo and details?
Absolutely. The customization settings let you upload logos plus configure all your business info to brand invoices professionally.
Is there a quicker way to bill regular clients?
Yes. You can create customer profiles for frequent clients and set invoices to automatically recur based on set schedules.
What happens if a client is late paying an invoice?
You can enable automatic email reminders to nudge them to pay. Beyond that, you may need to follow up manually or pursue collections if they default.
I hope this guide gives you confidence to start leveraging PayPal’s flexible invoicing system to make billing and getting paid a breeze! Let me know if any other questions come up.
