In this article, we’ll delve into the powerful features of PencilPay’s payment plans and how wholesalers and suppliers can leverage them to manage outstanding invoices effectively.

With a noticeable shift towards payment plans, businesses are seeking alternatives to traditional methods of chasing overdue payments.

Let’s explore how PencilPay’s payment plans can transform your cash flow management strategy.

Introduction to Payment Plans

We’ve observed a significant shift in the way businesses handle outstanding invoices, particularly for customers on credit terms with multiple invoices piled up.

Rather than applying pressure or cutting off customers, many suppliers are now opting for turning to payment plan automation as a viable solution.

PencilPay’s approach allows wholesalers and suppliers to create payment plans tailored to their needs, ensuring smoother cash flow forecasting and reducing the burden of chasing outstanding invoices.

Setting Up Payment Plans

With PencilPay, setting up a payment plan is seamless and straightforward.

After identifying customers with overdue invoices, simply initiate a conversation about transitioning to a payment plan.

Once agreed upon, setting up the payment plan within PencilPay involves a few simple steps.

1. Selection of Outstanding Invoices:

Begin by selecting the outstanding invoices to include in the payment plan.

PencilPay allows you to choose multiple invoices, making it easy to consolidate payments.

2. Upfront Payment Percentage:

Determine the upfront percentage the customer can pay.

This upfront payment acts as a deposit and provides immediate cash flow relief for suppliers.

3. Recurring Payments:

Specify the remaining balance to be paid over a set period, typically in weekly installments.

PencilPay automates these recurring payments, simplifying the process for both parties.

4. Payment Method Options:

PencilPay offers flexibility in payment methods, allowing customers to choose between credit card and direct debit.

Suppliers can choose to absorb or pass on transaction fees, enhancing transparency and fairness.

5. Email Confirmation:

Once the payment plan is set up, PencilPay generates an email confirmation detailing the terms of the plan.

Customers receive this email, providing them with clarity and confidence in the arrangement.

Reconciliation and Payment Processing

Managing payments and reconciling transactions is made effortless with PencilPay’s integrated tools.

The platform streamlines the reconciliation process, allowing suppliers to reconcile payments with a single click.

Additionally, PencilPay supports both credit card and direct debit payments, offering flexibility and convenience for customers.

Conclusion

Implementing payment plans through PencilPay offers numerous benefits for both suppliers and customers.

By providing a structured approach to managing outstanding invoices, payment plans enhance cash flow predictability and strengthen trading relationships.

With PencilPay’s seamless integration and user-friendly interface, suppliers can navigate the complexities of cash flow management with confidence and ease.

If you’re ready to take control of your cash flow and ensure payment security for your business, explore PencilPay’s payment plan feature today!