Facing over six figures of overdue payments remaining unpaid, Roman Tepes, of bookkeeping and business coaching firm Balance My Books sought an automated late fee solution to setup for his client. He discovered Paidnice, which issues interest charges on unpaid Xero invoices. Within weeks Paidnice’s accounts receivable automation helped Roman’s client to cut their aged receivables by over 50%. While new customer invoices are push to the top of the payment pile.
One of Roman's clients was struggling with a huge accounts receivable balance and chronically late customer payments.
The client claimed they were contacting customers to request payment, but Roman saw little evidence this was happening effectively. He observed their pattern of paying bills quickly while receiving payments slowly - not a sustainable cash flow strategy. It was clear something had to change to reign in over six figures in late customer payments.
Roman knew he needed to motivate the client's customers to pay on time, every time. Manually calling and emailing was insufficient. He wanted a "stick" approach with automated late fees to get customers to pay promptly.
The client used Xero for accounting, so Roman researched apps that could integrate automated late fees. In a Xero forum, he discovered Paidnice, which mentioned automatic penalties for late payment. Roman realized Paidnice's accounts receivable automation was exactly what his client needed.
Roman implemented Paidnice for the client. Now when an invoice goes unpaid, Paidnice automatically detects lateness and issues interest charges added directly to invoices. These revised invoices clearly convey consequences for late payment.
For good paying customers, Paidnice also adds prompt payment discounts to incentivize early payment. Customers receive email and SMS reminders about discounts and upcoming interest charges giving them opportunities to pay on time.
The entire process requires no manual effort from Roman's client. Paidnice handles the receivables management automation while preserving positive customer relationships.
The results from implementing Paidnice were remarkable. Within months, over half of the client's late payments were collected - huge amounts of capital freed up to put towards business growth!
Now when customers receive Paidnice communications about impending interest penalties, they often request information to avoid fees indicating the system works.
While the client was initially unaware of Paidnice's significant impact, Roman has the numbers to prove over six-figures in late payments have now been reduced by more than half. Just as importantly, new invoices are now consistently paid on time.
“We look like heroes because we've introduced Paidnice into their business. For their business, it’s unlocked cash they didn't have or cash that they were paying interest on, which now is generated as part of their cashflow. So that's their big win.”
Roman's client unlocked major cash flow by leveraging Paidnice’s accounts receivable automation. Meanwhile, Roman positioned himself as an expert business advisor by rapidly deploying the perfect solution. As Roman summarizes:
"We’ve found Paidnice to be an absolutely brilliant solution for one of our clients. Don’t know of anything else in the market that does something like that." - Roman Tepes, Founder of Balance My Books
