When you’re running a wholesale or distribution business, your retail stockists are your lifeblood—but they can also be your biggest headache.

You know the story:
A new stockist comes on board with big promises. They place a decent opening order. A few months later, they’re behind on payments, dodging calls, and asking for extensions. Your team wastes hours chasing payments, navigating awkward conversations, and trying to protect the relationship while keeping cash flowing.

The good news? There’s a smarter way to manage this: automated payment plans.

Let’s explore how smart payment plans can eliminate stockist friction, improve cash flow, and keep your operations running smoothly.

The Root of the Problem: Stockist Payment Instability

Retailers and hospitality venues often have unpredictable cash flow. From seasonal sales dips to unexpected bills, even your best customers can run into trouble.

When stockists fall behind:

• You lose control of your cash flow
• Admin staff spend time chasing payments
• Sales teams are stuck managing debt instead of growth
• The stockist relationship becomes strained or collapses altogether

It’s not just frustrating—it’s costly.

Why Offering Payment Plans Can Save the Relationship

Retailers aren’t out to do the wrong thing—but when times get tight, they need flexible, structured options, not aggressive debt collection or a frozen account.

Offering a payment plan:

• Gives the customer a way to catch up without embarrassment
• Shows professionalism and empathy
• Recovers overdue amounts faster than ongoing reminders
• Keeps them ordering, so you retain the account
  
  

But here’s the key: payment plans only work when they’re automated and enforced. Doing it manually opens the door to missed payments and even more admin chaos.

What is a “Smart” Payment Plan?

A smart payment plan is:

• Digitally agreed: The customer signs off on it through a secure portal.
• Card or bank-backed: Their payment method is securely tokenised.
• Automated: Payments are scheduled and processed automatically.
• Trackable: You can see payment status in real-time and integrate updates into your ERP or accounting system.
  
  

In short, it’s a set-and-forget way to recover overdue invoices—without the follow-up stress.

How PencilPay Automates Payment Plans

PencilPay makes it easy to offer and enforce payment plans that protect your cash flow and your stockist relationships.

Here’s how it works:

1. Select invoices to include in the plan (e.g. a $3,000 balance).
2. Choose the terms—e.g. $1,000 per month for 3 months.
3. The stockist receives a secure link, authorises the plan and adds a card or bank account.
4. PencilPay takes care of the rest—charging them automatically on the agreed dates.
5. You stay in control—if a payment fails, you get notified and can pause future orders.
   
   

You don’t need to lift a finger after setup.
No chasing. No spreadsheets. No awkward calls.

The Business Impact

Using automated payment plans, you can:

• Recover overdue payments faster and more reliably
• Reduce AR workload for your admin and finance teams
• Keep your sales reps focused on growth, not collections
• Offer a professional experience to every stockist, even when things get tricky
  
  

And most importantly—you protect long-term relationships without compromising on cash flow.

Make Payment Plans a Growth Tool, Not a Last Resort

Payment plans shouldn’t be a reactive fix—they should be a proactive part of your customer management strategy. When built into your sales, onboarding, and finance workflows, they become a tool for retention, not just recovery.

If you’re tired of chasing stockists and want to scale with confidence, it’s time to add smart payment plans to your toolkit.

👉 Book a demo with PencilPay today and se`e how easy it is to turn your payment headaches into predictable, automated cash flow.