Fergus Pay is a secure credit card payment feature powered by Stripe that allows your customers to easily pay your invoices by credit card. It’s a win-win situation for everyone involved: your customers can pay you in a few simple clicks, and you get your money up to two times faster! In this blog, we’ve crunched the numbers on Fergus Pay and are excited to share how you can use it to get ahead in business.
Cash, and why you need to keep it flowing
As a small or medium-sized trades business owner, you already know how critical cash flow is for running a tight ship. Covering your operating costs, paying your employees and suppliers on time, buying inventory, and settling taxes are the key pillars of any financially stable operation, no matter how big or small.
You’re likely all too familiar with the woes late-paying customers can cause you. One or two forgetful customers aren’t a big deal, but the number of unpaid invoices can quickly get out of control. When the inflow of money starts lagging, your business might end up on the back foot. Add an economic slump set off by the COVID pandemic to the mix, and things can snowball before you know it.
According to Xero’s Small Business Insights, small and medium-sized companies that are paid slower than average have 3 percentage points’ lower revenue growth than those paid faster. If your trades business has healthy cash flow and profitability, you’re better positioned to deal with other hard knocks that may come your way.
Why are your customers late to pay?
There are a hundred and one reasons why some customers don’t pay their bills and invoices on time, but most fall into three buckets. The first type of late-paying customer is simply forgetful. The second type finds the whole bank transfer thing a hassle, which causes them to delay. The third type simply cannot afford to fork out the lump sum in one go.
Luckily, there is one easy fix for all three. With Fergus Pay, our smart credit card payment solution, every one of your customers can send quick and fuss-free payments to you. The more straightforward it is for them to do so, the sooner you’ll be able to pocket your hard-earned cash.
Don’t just take our word for it – our data shows that tradies who use Fergus Pay get paid twice as quickly than those who don’t! Aussie Fergus Pay users get paid in only 11 days on average, compared to 17 days for Fergus users who don’t use it. Similarly, it takes only 13 days for Kiwi Fergus Pay users to receive their money (non-Fergus Pay users need to wait an additional 7 days on average before money lands in their account). To put these numbers into perspective, the industry average to get paid is 25 days**. The difference is a glaring one!
The average number of days getting paid per user type and country:
Fergus Pay fits many bills
Not only does Fergus Pay enable you to get paid faster, but it also brings a bunch of other benefits to your business. For one, it allows you to cast a wider net when you’re looking for new customers because you’re adding a new payment option (debit or credit card) to your accepted payment methods. Some people prefer to pay by credit card. For others, it’s more of a necessity – if they have a major plumbing emergency, for example, but can’t afford to pay in cash right away, putting it on their card will be the only feasible solution. Whatever the reason, you’ve got both situations covered.
Receiving your payments more quickly also means you’ll be able to pay your suppliers sooner, which is guaranteed to earn you some brownie points. By having liquid assets available, you’re also dodging pricey overdraft fees and interest rates. It can all add up and make the difference between a profitable business and a not-so-profitable one. Not to even mention, offering a simple yet reliable and secure payment solution lends extra credibility to your company. If you’re eager to learn more, we’ve compiled a list of 10 ways Fergus Pay can transform your cash flow.
How does it work?
The set-up process is plain sailing – if you’re a Fergus customer click here to sign up for Stripe. Follow the steps as prompted, and you’ll be good to go in no time! No set-up fees or convoluted processes to go through, we promise.
If you don’t have a Fergus account yet, but would like to take Fergus Pay for a spin, sign up for a free trial of our job management software now.
*Data from the Fergus App invoicing (these figures are across the board, irrespective of individual payment terms)
**Data from Xero’s Small Business Insights across Australia and New Zealand in October 2020.