21 Jun Diminish the payment gap with billzy®
Picture this, you have a client which was a challenge to pitch to, and is proving a constant stretch to keep on, for myriad reasons (the scope of work has changed, communication isn’t great, but you love the client’s ethos and what they do, and you would like to service them in the best way possible). And: they promise they will be a good bill payer, but then… they’re not, and they make out that their bills are more important than yours. What to do? How to ask for payment which is actually yours, without upsetting the apple cart? Is there any scope for them understanding what you were going through? In part three of our testimonial series, Peter explains his experiences, and we know they will resonate with you.
“Generally, no one actually really cares from the other side of the fence – that’s the short version! When you have a good relationship with a client and you call them when you need to, they can action it within, say, a week and deal with it but still that’s another week! So it’s not great when you’re trying to make payroll for the contractors,” says Peter.
That huge gap, when your contractors are getting paid weekly yet your terms are 45 days, can be the death knell of a business. In the midst of it all you’re wanting to do something that is fair, yet you’re the one suffering and now you’re also late in paying your own bills. Not ideal at all.
Peter reiterates this pain point for his own business. “In this one particular scenario, for our biggest labour hire contract, the terms were 45 days. So what we are dealing with here is one week’s payroll equally $40,000 for the contractors for that week. And yet on the side of the fence, they have six weeks to pay that to me.”
Even if maths is not your forte, you can see this does not and can never be good practice for your business.
As you can see, this is where billzy® has helped Peter, and where billzy® can assist your business too!