How Paintvine reduced late payments to zero within a month
Late fees, reminders, and customer groups took Paintvine from 20%+ late invoices to zero within a month.
On-time payment rate rose from 80% to 100% within one month.
Watch Alex tell it · 0:49
Paintvine is a popular paint and wine studio based in New Zealand that was struggling with customers frequently paying invoices late. We spoke with Alex Hamilton, CEO of Paintvine, on how Paidnice's accounts receivable automation helped them reduce late payments to zero within the first month.
The challenge: unreliable cash flow
As a small business, Paintvine relied on predictable cash flow to pay employees and suppliers on time. With over 20% of customer payments consistently late, it was difficult for Alex to reliably forecast and manage cash flow.
"Late customer payments were our single biggest headache. We never knew when or if invoices would be paid on time."
This frequently led to liquidity issues that forced Paintvine to delay payments themselves. Alex knew he needed to solve the problem of late payments to stabilize cash flow.
The fix: late fees and reminders on autopilot
After researching options, Alex chose Paidnice for its ability to automatically apply configured late fees and send invoice payment reminders directly to customers. Four features did the work:
Paidnice detects unpaid Xero invoices and adds a configured percentage fee that is sent to the customer. Paintvine's late payment policy finally got enforced, consistently.
Customized email and SMS payment reminders go out as invoices become due and overdue. The friendly reminders lifted on-time payment rates.
Reminders and late fees are sent from Paintvine's email domain, not Paidnice's, improving open and response rates.
Late fee rules and reminders are customized for different customer groups based on purchase history.
The results: late payments dropped to zero
Within the first month of implementing Paidnice, Paintvine saw late customer payments decrease from over 20% to zero.
Before Paidnice
"We never knew when or if invoices would be paid on time."
Liquidity issues forced Paintvine to delay its own payments.
A late payment policy existed, but applying it depended on someone following up.
After Paidnice
On-time payment rate improved from 80% to 100%.
Employees and suppliers paid reliably, on schedule.
Paidnice applies the late fees; fees collected rose 10%.
"Paidnice gave us the reliability we needed in our accounts receivable. Now we can depend on customer payments arriving on time to pay our own bills."
By automating the process of collecting owed payments, Paintvine eliminated late payments and achieved the predictable cash flow crucial for small business success.
