Penny was created to help small businesses master positive cash flow by advancing their invoices, so they get paid in hours rather than weeks.
It’s great, but it’s also new and a bit different and we get that. A common concern is what contact Penny will have with your client once we fund your invoice, and whether it will be a hassle for them.
This is completely understandable - without clients you have no business after all. But without you, we have no business! So it is in everyone’s interests that we keep your clients on side, and make them fans of Penny too.
Our communications with your clients are always discreet, professional and friendly. Here’s how Penny looks client-side:
Letting your client know
Prior to using Penny, we suggest you send your client a courtesy email, so that when we contact them, it won’t come out of the blue. If the client is already aware you are using Penny, it also tends to reduce the time it takes us to validate the invoice, so you get paid even quicker.
Receiving the invoice
Our first point of contact at your client’s business, is always the person whose details you have provided us. If this is a company director, or someone in the accounts department, so much the better, as that makes it more likely that we will be able to validate the invoice straight away and therefore speeds up your payment.
When you fast track an invoice payment with Penny, the first communication your client will receive is an email confirming that you have sold the invoice to Penny, an invoice financing service. We also say that we’ll be in touch to confirm their acceptance of the invoice.
Validating the invoice
Before we can pay you, we need to confirm your client is happy with the invoice details.
This is generally done with a quick phone call from a member of our team.
Obviously, we want to get you paid as soon as possible, so we’ll keep trying until we get the thumbs ups on the invoice.
Naturally it works both ways, and they can contact the Penny team at any time if they have any questions.
Behind the scenes
Once we pay you, that’s the invoice done and dusted from your point of view. By opting to finance your invoice with Penny, you have no waiting or chasing to do.
We’ll just send your client a courtesy reminder email 7 days before the payment is due. They pay the invoice as they normally would - simple. The absolute only difference is that instead of paying you, they pay Penny.
What happens if my client doesn’t pay
Firstly, it’s not your problem. The Penny fee you paid to advance your invoice covers the cost of insuring our risk in a bad debt situation, so there will never be any liability on you.
If you are worried about us being heavy-handed with your client if they pay late, please don’t be. While it is necessary for us to have a debt recovery process in place, we very seldom have to use it.
We much prefer to engage with clients through friendly dialogue and we are open to extensions and payment plans depending on the circumstances.
Win win with Penny!
Sometimes clients like the Penny service so much that they go on to use it to pay their other suppliers. It lets them pay invoices sooner without compromising cash flow.
People like Lee, who runs a digital marketing agency. On the one hand he uses Penny with his own clients to manage his business income without having to chase payments, on the other he pays his freelancers via Penny.
We hope you’ve found this useful. As always, we’re here if you need any help. Just get in touch by email, phone or webchat.