Measures to finance the IT contract business in the era of the revised subcontract law. Adjust the payment timing of outsourcing costs with invoice card payments

"The project has been taken, but the payment is still ahead. Before that, the payment day of outsourcing costs and various expenses to subcontracting companies will come----。

With the development of systems such as the "Small and Medium-sized Contract Transaction Optimization Act (so-called revised Subcontract Act)" on January 1, 2026, the trading environment surrounding IT outsourcing is undergoing major changes.

Trade practices such as ordering and unilateral price reductions that have been seen in the industry so far without solidifying specifications are required to be handled more carefully. In particular, in cases where the payment is delayed due to delays in acceptance, transaction troubles and legal risks may be pointed out.

In this "new trading environment", IT vendors are required more than ever to make management decisions with an eye on reliable payments and cash flow.

As legislation progresses, one of the most important ways to strategically fill the "blank period until payment" is the option of "invoice card payment," which switches the invoice of Bank transfer to Credit card payment.
Among them, the "Invoice Card Pay byGMO" provided by GMO Payment Gateway (hereinafter referred to as GMO-PG)​ is a service that allows you to pay for BtoB invoice designated by Bank transfer with your credit card, and the payment is dueup to about 60 days afterthe due date. It will be easier to adjust up to. It is easy to use while considering the relationship with suppliers because it is paid in Bank transfer and the transfer name can be set to the company's name. In this article, we will explain how this mechanism is useful in the IT contract business, including the situations it is suitable for and points to keep in mind.

The discrepancy that is likely to occur in the IT contract business is "start first, acceptance and payment later"

The reason why it is difficult to cash in the IT contract business is that while expenses are incurred from the moment the project starts moving, it is easy to put back on invoicing and receiving sales.

For example, contract development incurs labor costs for engineers, outsourcing costs to partner companies, and costs for development environments and various tools immediately after starting. However, the timing of claims is easily influenced by the form of contract and acceptance conditions, and it is easy to find that cash has not yet come in even though development is underway. In the IT contract business, having a backlog of orders (future sales plans) and having a margin on hand this month are not necessarily the same.

In particular, cash flow is likely to become difficult in the following situations.

• Immediately after starting development, it is necessary to place an order with a partner company
• Outsourcing costs are incurred at the end of the month
• Multiple projects are underway at the same time, and recruitment and advertising costs overlap
• Due to the delay in acceptance, billing and payment are also backward.
• The number of projects requested for maintenance and operation increases, and fixed expenditures increase.
  
  

For example, if you start development in April and you need to pay the outsourcing fee to a partner company at the end of May, while the client accepts the contract at the end of June and the payment is made at the end of July, even if the project is expected to be profitable, only the cash flow along the way may be difficult.
In the IT outsourcing business,it is important not only to manage the profitability of projects, but also to manage the time difference between payment and payment.

Invoice Card Pay byGMO is the option to adjust payment timing, such as outsourcing costs

An easy way to consider as a countermeasure to such cash flow discrepancies is "Invoice Card Pay byGMO".

This service allows you to switch invoice from Bank transfer to Credit card payment. The payment recipient is credited in Bank transfer, and the transfer name can be set to your company name.payment You do not need to inform us of your use of the Service in advance, andregistration is free and there are no upfront or monthly fees. The only cost required is the fee at the time of use, making it easy to consider using it.

One of the most compatible IT contract businesses isoutsourcing costs to partner companies. Invoice Card Pay byGMO supports a wide range of payment, including outsourcing, advertising, and purchasing costs, but some are not covered and are handled differently by credit card brand. Therefore, even if you use it in an IT contract business, you must first check whether the payment you want to use is eligible.

Please note that you can only useBank transfer invoice and only for business-to-business payment. In principle, the usage limit iswithin the usage limit of the credit card you have.

Three situations suitable for IT contract business

1. When the acceptance inspection is after the end of the month and only the outsourcing cost comes out first.

In contract development, even if development is progressing, there are projects that are difficult to claim until the acceptance inspection is completed.
In the meantime, payment of outsourcing costs and outsourcing costs to subcontracting companies will be incurred first. In these situations, it is easier to adjust cash flow by moving the payment time of outsourcing costs closer to the sales receipt date.

2. When multiple projects overlap and the payment at the end of the month is concentrated

In the IT contract business, the more projects there are, the more sales prospects will increase, but the cost of ordering and production to partner companies will also increase first.
Especially at the end of the month, recruitment costs, advertising costs, office-related expenses, etc. tend to overlap in addition to outsourcing costs, andeven if you are expected to be in the black, you may be temporarily short of cash.

3. When you want to save bank loans for hiring or future investments

In the IT contract business, there are situations where you want to use funds to hire engineers, invest in education, and strengthen the development system.
Therefore, it is a system that is compatible with the idea that daily outsourcing costs and temporary payment discrepancies should be adjusted by other means, and bank borrowing should be used for more medium- to long-term investments. Invoice Card Pay byGMOallows you to adjust your payment timing by leveraging credit card lines rather than borrowing.

4 points to check before introduction

1. Can you absorb the 3.0% commission in gross profit?

The cost of Invoice Card Pay byGMO is 3.0% of the payment amount, with a minimum fee of 1,500 yen.
Therefore, it is necessary to judge not only whether cash flow can be improved, but alsowhether the cost can be tolerated in the gross profit of the project. For projects with a high outsourcing ratio or low gross profit, it may be more appropriate to "use only the right month" rather than using it every time.

2. Is the payment you want to use the target expense?

We handle a wide range of payment such as outsourcing costs, advertising costs, and purchasing costs, but some of them may fail the examination as excluded, so it is necessary to check in advance, even if it is a common payment in the IT contract industry.

3. Do you have enough credit card limit?

As a general rule, the maximum usage limit for the service is within the usage limit of the credit card you have.
If you're using your credit card for other expenses at the end of the month, you should first look at how much space you have left to pay with your invoice card.

4. You can't always extend it by 60 days

The maximum number of days you can extend your payment is about 60 days, but the actual number of days carried forward dependson the date of your Credit card payment application and the date your card is debited.
Therefore, it is safe to check when to apply and when to get payment before introducing it, along with the closing date and payment date of your credit card.

Not suitable cases

If you want to use it regularly as a permanent deficit filling

While the service is easy to use as a way to adjust short-term funding gaps, it is not suitable for filling fundamental profitability deterioration.
Since fees are incurred, regular use for the purpose of continuing to support projects with insufficient gross profit may actually increase the financial burden.

If you want to secure long-term funds for more than half a year

Invoice Card Pay byGMO is a mechanism that adjusts the payment timingfor up to about 60 days.
To secure funds for long-term working capital or large growth investments, other avenues such as bank loans are more suitable.

Frequently Asked Questions

Q. Can you tell your business partner that you are using invoice card payment?

The payment recipient is credited with Bank transfer, and the transfer name can be set to your company name. payment You do not need to notify us of your use of the Service in advance.

Q. Can I use any invoice?

Business transactions payment only. Not all payment are eligible, so you need to check before using them.

Q. Who pays the fees for Credit card payment?

The payment using the service will bear the burden. The fee for use is 3.0% of the payment amount, with a minimum of 1,500 yen. (The transfer fee is included in this fee)

Q. Is there a usage limit?

Basically, you will use it within the usage limit of your credit card. When using it for payment of material costs and outsourcing costs, it is important to manage the frame along with other expenses.

Conclusion

In the IT contract business, even if it seems to be going well as the number of projects increases, the timing of initiation, outsourcing, acceptance, billing, and payment may be delayed, and the funds on hand may be in trouble first. Official documents also show the diversification of transaction forms in the information service and software industries, as well as the importance of organizing contract and acceptance conditions, and the cash flow of IT contract is inseparable from project management.

Invoice Card Pay byGMO is an option to switch Bank transfer invoice such as outsourcing costs to credit card payments and move the payment time back in such situations. Registration is free and there are no initial or monthly fees, but it is essential to check the 3.0% fee, eligible fees, credit card limits, and screening conditions.

If you can use bank loans, business investments, and invoice card payments according to the situation, it will be easier to make decisions even in months when projects overlap.
It's a good idea to start by checking if your company's outsourcing costs and other payment are covered, and if you have enough credit card line.