Get paid upfront on every invoice. Your customers pay in instalments. And your Xero books update automatically — no manual reconciliation required.
PaidTerms Capital is a funded instalment payments platform for NZ businesses. When a customer uses PaidTerms to pay an invoice, PaidTerms pays the supplier the full invoice amount upfront — immediately. The customer then repays PaidTerms over three scheduled instalments.
As a supplier, you raise your invoice as normal. Your customer gets flexible payment terms. You get paid immediately. PaidTerms carries the risk.
PaidTerms Capital connects directly to your Xero account via a secure one-click login. Once connected, PaidTerms reads your outstanding invoices, validates payment amounts live from Xero, and posts payments back to your Xero books automatically as each instalment arrives.
You don't need to do anything manually. Xero stays up to date. Your books reconcile themselves.
No double entry. No manual bank rec. No end-of-month catch-up. Every payment and every PaidTerms fee posts to the correct Xero account automatically.
The setup takes about five minutes. There are no API keys, no developer setup, and nothing technical to configure. You authorise the connection through Xero's standard login screen — the same login you use every day.
From your PaidTerms dashboard, click "Connect Xero." You'll be taken to Xero's standard login screen to authorise the connection. This is a secure, read-and-write OAuth connection — no passwords are shared with PaidTerms.
Select the Xero bank account where incoming instalment payments should be recorded. This is where PaidTerms posts each payment as it arrives, so your bank rec lines up automatically.
Select the expense account in Xero where PaidTerms fees should be recorded. Each transaction fee gets posted here automatically, so your P&L stays accurate without any manual entries.
PaidTerms registers itself as a payment service in Xero. A "Pay with PaidTerms" button appears directly on your Xero invoice PDFs, so customers can start a payment plan from the invoice they receive — without needing a separate link.
Get a Xero-compatible invoice template with your PaidTerms payment link already embedded. Send this to customers and they can start a plan directly from their invoice PDF.
When a customer clicks "Pay with PaidTerms" on their Xero invoice and completes their payment plan, here is exactly what happens in your Xero account:
When the customer enters their invoice number on the PaidTerms payment page, the amount is pulled directly from your Xero account in real time. There is no risk of a customer entering the wrong amount — PaidTerms confirms the exact figure from your live invoice.
As each instalment is collected, PaidTerms automatically posts a payment to your Xero invoice against your nominated clearing account. Your invoice outstanding balance reduces with each instalment — no manual entries required.
The platform fee for each transaction is recorded as a bank transaction in your nominated Xero expense account — keeping your P&L clean and your accountant happy.
If an invoice is updated or paid outside of PaidTerms — for example, a customer pays a different way — Xero notifies PaidTerms immediately. Both systems stay current without any manual reconciliation.
Both PaidTerms Capital and PaidTerms Pro connect to Xero and let you offer instalment plans on your invoices. The key difference is who funds the payment — and how deeply Xero is integrated.
Connects via Xero's standard OAuth login — no API keys, no passwords shared, no developer required. Takes about 2 minutes to authorise.
When a customer enters their invoice number, PaidTerms confirms the exact amount from your live Xero account. No manual entry, no mismatched figures, no calls to check.
PaidTerms registers as a payment service in Xero. A "Pay with PaidTerms" button appears natively on your Xero invoice PDFs — customers can start a plan without visiting a separate page.
Every instalment is posted to Xero as it lands, against your nominated clearing account. Your invoice balance reduces automatically — no manual bank rec.
PaidTerms fees are posted directly to the expense account you choose in Xero. Your P&L reflects the cost of every transaction from day one, without manual entries.
Xero notifies PaidTerms instantly when invoices are updated or paid externally. Both systems stay in sync — no end-of-month catch-up, no manual reconciliation needed.
Most NZ businesses using Xero still offer trade credit manually — emailing invoices, chasing payments, and doing their bank rec at the end of the month. Here is what that looks like compared to PaidTerms Capital.
| Task | Manual trade credit | PaidTerms Capital + Xero |
|---|---|---|
| When you get paid | 30–90 days after invoice | Upfront — day one |
| Recording payments in Xero | Manual — you do it | Automatic |
| Recording platform fees | N/A | Automatic — posted to your expense account |
| Invoice amount verification | Customer enters manually — errors possible | Pulled live from Xero — always accurate |
| Customer pays from Xero invoice | No | Yes — "Pay with PaidTerms" button in Xero |
| Bank reconciliation | Manual monthly process | Automatic — posts as each instalment lands |
| Chasing late payments | You — phone calls, emails, statements | Not required |
| Bad debt risk | Yours | PaidTerms carries it |
PaidTerms Capital works for any NZ business that invoices other businesses in Xero and wants to offer payment flexibility without carrying the risk of trade credit.
Yes. PaidTerms Capital has a native Xero integration. Once connected, PaidTerms reads your outstanding invoices from Xero, validates amounts live, posts payments to your clearing account automatically, and records platform fees to your nominated expense account — all without any manual input from you.
From your PaidTerms dashboard, click "Connect Xero." You'll be taken to Xero's standard login screen to authorise the connection. There are no API keys, no developer setup, and no technical configuration required. The connection takes about 2 minutes to complete.
Each instalment is automatically recorded in Xero as a payment against the relevant invoice, directed to your nominated clearing account. The invoice outstanding balance in Xero reduces with each instalment. The PaidTerms platform fee for that transaction is also posted to your nominated expense account automatically. You don't need to do anything manually.
No. Keep raising invoices in Xero exactly as you do now. PaidTerms reads your outstanding invoices automatically — you don't need to tag, flag, or export anything. If you want to make it even easier for customers, you can activate the "Pay with PaidTerms" button that appears directly on your Xero invoice PDFs.
Yes. During setup, PaidTerms registers itself as a payment service in your Xero account. This adds a "Pay with PaidTerms" button directly to the Xero invoice your customer receives. They can click it and start a payment plan without needing to visit a separate website or page.
You choose during setup. PaidTerms posts instalment payments to a Xero bank account you nominate (the clearing account), and posts platform fees to an expense account you choose. Both are mapped once during setup and run automatically from then on.
Xero sends PaidTerms a notification automatically when invoices are updated or paid — even when it happens outside of PaidTerms. PaidTerms fetches the latest invoice state from Xero and updates its own records accordingly. Both systems stay in sync without any manual action from you.
PaidTerms Capital currently supports NZD invoices only. Invoices in other currencies are not eligible for instalment plans.
Yes. PaidTerms connects using Xero's standard OAuth 2.0 authorisation — the same secure login method used by all Xero-connected apps. PaidTerms never stores your Xero password. You can disconnect PaidTerms from your Xero account at any time from your PaidTerms dashboard.
Not for transactions processed through PaidTerms Capital. Every payment is posted to your Xero clearing account automatically as it arrives. Your reconciliation is up to date in real time — not waiting for a monthly catch-up.
Both plans connect to Xero, validate invoice amounts live, and let you send instalment offers. PaidTerms Capital adds automatic payment recording, fee mapping, the "Pay with PaidTerms" button inside Xero, and real-time two-way sync. The key difference is that Capital pays you upfront in full — PaidTerms funds the instalments, not you.
To understand how PaidTerms Pro handles Xero invoices at a lighter level, see PaidTerms Pro + Xero Integration.
To learn what B2B BNPL is and how it works for NZ businesses, see What Is B2B BNPL In New Zealand?
To understand the difference between trade credit and B2B BNPL, see Trade Credit vs B2B BNPL in New Zealand.
PaidTerms Capital plugs directly into your Xero account. Your customers get flexible payment terms. You get paid upfront. Your books update automatically.
No manual reconciliation. No chasing. No risk.