fbpx

Getting your invoices paid early

Aggressive Dog's tend to help when asking for payment

If your nickname’s Slasher and you happen to visit your customers with a two hundred pound Rottweiler, I suspect you have no issue getting invoices paid (probably in cash too), but for most businesses, getting paid at all is a bonus.

Getting paid early is a pipe dream.

There’s an entire government department setup solely to discuss and resolve the late-payment issue and so far all it’s managed to come up with is a system where big business have to report how quickly they settle their invoices. They are then awarded either a red, amber or green status. Quite how that’s meant to get you paid quicker, I have no idea. Perhaps the same group of problem solvers will now move on to sorting climate change, so expect nothing to change there too (except the climate, obvs.)

The sad truth is, businesses are so busy chasing overdue payments (61% of invoices are paid late) that by the time you’ll actually get to ask for an early payment, it’s likely to be past its due date anyway!

SETTLEMENT DISCOUNTS CAN PUT YOU IN THERAPY

Share the love as you extract their money

With the benefit of hindsight, I can tell you the only thing worse than poor cashflow is the false sense of hope you get by offering a settlement discount. Just writing about it winds me up…but in a bid to stop you making the same mistake, I’ll go on.

Several years ago, my cashflow was so poor, I offered a 5% settlement discount for early payment. To make sure my customers got the message, I invested in a rubber stamp and red ink pad. My accounts department spent the rest of the day thumping it out on each invoice we raised. By lunchtime there were red fingerprints all over the office.

PAY WITHIN 14 DAYS AND DEDUCT 5%

Even though I was giving away a massive slug of margin, the anticipation of payments rushing in gave me the best night’s sleep I’d had in months. I dreamed of my bank manager calling, begging me to put the excess cash on deposit. The next day I rushed into my office early to prepare myself for the deluge of payments.

Day 1. Nothing
Day 2. Nothing
Day 3. The accounts office of my only prompt paying customer calls to thank me for giving them 5% for doing what they always do — pay early. 
Day 30. The remaining few prompt payers send in payments. Each of them have deducted the discount. 
Day 75–120. The usual stream of slow payers send 95% of the invoice values, knowing full well I’m not going to bother chasing them for the paltry 5% that I’ve gifted them. I hate them all.
My sales manager tells me he’s struggling to maintain sales value as pretty much all our customers think if we can afford to give away 5%, our margins are too high.
Day 121. Neville, my book-keeper reminds me we still have to raise credit notes for the farty little amounts that we’re having to write off, otherwise our books won’t balance.

CREDIT NOTES…ADMIN…

Prepare to be left with lots of small balances owing -  and the mountain of credit-notes you'll need to raise

In short, I’ve lost 5% of a month’s turnover and had the added expense (and hassle) of raising credit-notes, not to mention the cost of a certain rubber stamp and various cleaning fluids to remove the red stains all over our office.
Our company pricing structure has also been questioned.
And our cashflows worse than ever. 5% worse in fact.

At this point, I’d like to be able to tell you how I turned it around and made everything right. But I can’t. 

The SDS (SDS = Settlement Discount Saga. I still find it difficult to utter the words) lasted for two months. The mess it created took many more months. 

I now live in a caravan selling daisy chains*

*Not really. I spent the next decade vowing to solve the issue of late-payments. And that’s how peasy.com was born.

David Landsberg
Co-Founder & CEO

Getting Customers to Pay Quicker — and Love you for it

peasy.com

Close Menu

CREATE YOUR PEASY ACCOUNT

THANK YOU

We’ll send an email when your data has imported and your

Peasy account is ready to go.

In the meantime, why no take a look around?

You will need to respond to our set up email when it arrives. If you do not complete the Peasy set up within 7 days the your data will be removed from our system

Login to your Peasy account

Welcome to PEASY

Import your data from Xero

Peasy syncs your customer details, invoices and payment data with Xero, so with your permission we’ll need to import the following data:

• Your customer details and contacts
• Your company profile
• Your current invoices

Invoice settings

By default, Peasy imports all your unpaid invoices.

Select the invoices you wish to import

Create your Peasy Account

COMPLETE SETUP

It takes just a few more seconds to
sign up and connect to Xero.

NO CREDIT CARD REQUIRED

CONNECT TO XERO

By singning up you agree to the Peasy Terms & Conditions

Already Registered? Sign in

If you are using Xero you will be able to integrate now.

If you are using QuickBooks, Sage, FreshBook or any other accounting software we will contact you as soon as these plugins go live

Register now and receive a free 12 month membership for Peasy

CONNECT TO XERO
Register