If you’re a wholesaler or manufacturer, you know the pain of overdue payments. Debtor days stack up, cash flow stalls, and chasing money starts to take up more time than making sales. But here’s the catch: most businesses hesitate to enforce stricter terms or late fees because they don’t want to damage customer relationships.
It’s a delicate balance—getting paid on time without burning bridges.
The good news? With the right systems and processes, you can reduce debtor days without awkward phone calls or souring key accounts. In this article, we’ll break down three smart strategies that help you get paid faster—plus how PencilPay automates each one.
1. Set Clear Expectations From Day One
Most late payments happen because the customer simply didn’t understand the terms—or thought they had more time than they actually did.
Solution: Use a digital credit application that outlines your terms, payment options, and conditions upfront. This ensures there’s no ambiguity, and customers know exactly what to expect before they place their first order.
With PencilPay, every new customer receives a branded digital application that captures:
- Business and director details
- Agreed payment terms (e.g. 7, 14, 30 days)
- Automatic acceptance of terms and conditions
The result? Fewer disputes. Fewer “I didn’t know” excuses. More accountability.
2. Automate Payment Reminders and Collections
Manual follow-ups are inconsistent—and frankly, uncomfortable. You don’t want your sales or admin team wasting hours chasing invoices or stressing about how to word a “gentle nudge” email.
Solution: Automate your reminder system and enforce payment with pre-agreed rules. Customers stay informed, and payments are less likely to slip through the cracks.
PencilPay sends:
- Automatic invoice reminders
- Payment due alerts
- Escalation notices (e.g. when an account becomes overdue)
Even better, if the customer has connected a bank account or card, payments can be auto-debited on the due date—or split into a payment plan if needed. You stay in control without lifting a finger.
3. Offer Smart Payment Plans (Without Becoming a Bank)
Some customers run into genuine cash flow issues. If your only options are “pay in full” or “cut them off,” you risk losing business—or getting stuck with bad debt.
Solution: Offer structured payment plans with built-in security, so you can keep the relationship going while still collecting what you’re owed.
PencilPay lets you:
- Set up payment plans for overdue customers
- Break down outstanding balances into weekly or monthly instalments
- Secure future payments with their card or bank details on file
You get paid gradually without chasing, and your customer gets breathing room. Win-win.
The Bottom Line: Firm, Fair, and Automated Wins the Race
Reducing debtor days doesn’t mean becoming aggressive. It means building a clear, consistent, and automated system that reinforces your terms and keeps customers informed.
PencilPay gives you the tools to do just that—without harming relationships or creating friction.
Want to see how it works?
Try PencilPay free and start collecting payments faster—without the awkward conversations.