After completing a two-year apprenticeship at Bellarine Brewing Company, Max Dent made the bold decision to establish Cloud Cuckoo Island—a company specialising in pre-batched cocktail kegs, cans, and bottles.
Max had a clear vision of selling directly to various sectors, including hospitality, retail bottle shops, pubs, clubs, events, and music festivals.
As a young entrepreneur venturing into his first real business, Max was uncertain about what lay ahead. He adopted a 14-day payment term for his customers without a formal credit purchasing process, placing his trust in the trade customers to pay on time.
Over the next few years, Max experienced a rollercoaster ride of fluctuations in sales, encountering challenges with customers who failed to pay.
This situation resulted in increased costs, rising debtors, and declining profit margins. The original 14-day terms were extended to 28 days and beyond. In an interview, Max revealed that “on average, payments would often take 30 to 40 days.”
Recognising the need for change, Max sought a solution.
PencilPay caught Max’s attention due to its ability to automate credit processing, allowing him to effortlessly share payment links with customers and manage accounts receivables more efficiently.
Typically, Cloud Cuckoo Cocktails offers a standard 14-day payment term to their wholesale customers.
However, the credit limit varies based on individual requirements, ranging from one to two thousand dollars.
Max explained that credit limits can be adjusted depending on factors such as personal guarantees or trading history.
Max emphasised the significant role of PencilPay in his day-to-day business operations, particularly in customer onboarding, credit processing, and accounts receivables.
He stated, “PencilPay’s functionalities have become an integral part of Cloud Cuckoo Cocktails’ processes.”
Since implementing PencilPay, Cloud Cuckoo Cocktails has experienced a notable improvement in payment timelines.
Previously, payments took an average of 30 to 40 days. However, with the automation and streamlined processes facilitated by PencilPay, the payment period has been reduced to an impressive 14 days. This enhancement has ensured consistent and timely payments, alleviating cashflow concerns for Max and his team.
Max highlighted the main benefit of PencilPay as “automated cashflow.”
With the assurance of prompt payments, he can confidently negotiate deals with suppliers and settle payments promptly, fostering strong relationships throughout the supply chain.
Max emphasised that “anyone with direct account needs should be using a system like PencilPay.”
Max Dent’s success story with PencilPay exemplifies its transformative impact on streamlining credit processing and optimising cashflow for alcohol producers and distributors.
He praised the platform’s seamless and user-friendly nature, emphasising the peace of mind that comes from knowing payments will be received promptly.
By automating payment processes, PencilPay empowers businesses like Cloud Cuckoo Cocktails to focus on growth, strengthen customer relationships, and operate with confidence.
If you’re ready to improve your credit processing and automate your cashflow, take a cue from Max’s experience and discover the seamless benefits of PencilPay for your business today.