Question 1

What is cash collection in Lago?

Accepted Answer

Cash collection is the set of tools Lago uses to get invoices paid: automatic payment retries, dunning reminders, progressive billing on high-usage accounts, and native integrations with payment providers like Stripe, Adyen, and GoCardless. It works across any pricing model and any connected payment processor, so collections don ' t need a separate workflow per plan type.

Question 2

How does Lago collect payments automatically?

Accepted Answer

Lago connects natively to Stripe, Adyen, and GoCardless to trigger payment intents, generate checkout links, and update invoice status without manual steps, and it synchronizes customer records with the payment provider automatically. For a processor without a native integration, Lago sends webhooks with the billing information so a team can wire up its own automation.

Question 3

What happens when a payment fails?

Accepted Answer

A failed payment shows up as invoice.payment_failure, and the invoice can be resent for collection from the UI or the API. Lago also generates a payment URL valid for 24 hours that a customer can use to pay directly, and a successful retry updates the invoice status automatically through the invoice.payment_status_updated event.

Question 4

What is progressive billing and why does it matter for collections?

Accepted Answer

Progressive billing invoices a customer automatically once their cumulative usage crosses a threshold, instead of waiting for the billing cycle to end. This limits how much unpaid usage a high-consumption customer can rack up before being billed, which reduces the risk of unpaid invoices or fraud on usage-based plans.

Question 5

Can Lago automate dunning without a human chasing every invoice?

Accepted Answer

Yes, two ways. Standard automatic dunning sends reminder emails on a defined delay and attempt count once an account crosses an overdue balance threshold. Lago ' s Dunning Agent goes further: it reads a customer ' s payment history and reliability before deciding whether to send a reminder, retry a charge below a set cap, or escalate to a person, rather than applying the same timeline to every account. The Dunning Agent is in beta and available by request.

Question 6

Does Lago support prepaid credits to reduce collection risk?

Accepted Answer

Yes. Prepaid credits let a customer pay upfront and draw down against that balance as they use the product, which removes collection risk entirely for the usage covered by the balance. Wallet balances can trigger consumption alerts before they run out, so a customer can top up before hitting zero.

Question 7

Does Lago sync payment and collection data to accounting software?

Accepted Answer

Yes. Lago supports two-way accounting syncs with Xero, NetSuite, and QuickBooks, so invoices, payments, and credit notes stay consistent between the billing system and the general ledger without manual re-entry.

Question 8

Does cash collection work the same way for usage-based and subscription plans?

Accepted Answer

Yes. The same collection tools (payment retries, dunning, provider integrations) apply regardless of whether a plan is a flat subscription, pure usage-based, or hybrid. Progressive billing and prepaid credits are the two tools specific to usage-heavy plans, since that ' s where unbilled consumption risk is highest.

Cash collection for complex billing

Trusted by the most innovative companies

Built for next-gen companies

Invoice status at a glance

Zero tolerance for fraud

Stop manually chasing money

Use any payment rails

How Lago helps you collect faster.

Resources

Read documentation.

Watch demo.

Read article.

Empower all teams with usage data

Engineering

Product

Finance

Operations

Built for companies with sophisticated needs

Cash Collection FAQ