When you call a plumber, hire a builder, consult with an architect, or engage any skilled professional, you’re paying for a service. But when you delay payment or, worse, don’t pay at all, you’re effectively turning my small business into your personal bank. And, frankly, that’s not what I signed up for.

As a business owner and SME, I’m here to provide my expertise, skills, and time to deliver the services you need, not to extend endless lines of credit to YOU. When you don’t pay on time, it costs me more than you might think.

The Hidden Costs of Late Payments

When a customer delays payment, I still have to keep the lights on. That means I need to find the cash to pay my staff, keep up with my operational costs, and cover the materials used in your project. Unfortunately, these expenses don’t wait for your payment to come in. If I don’t have the funds on hand because you haven’t paid I have to resort to things like this:

Dip Into a Business Overdraft: Many SMEs have to rely on business overdrafts to cover shortfalls when customers don’t pay on time. While a business overdraft can be a financial lifeline, it’s not free. The banks charge hefty interest rates, meaning every day your payment is late, I’m paying out of pocket to float your delay. It’s my business, but I’m the one shouldering the financial burden because you didn’t meet your obligation. If you’re curious about what this could cost a small business, you can check out some of the common rates to compare business overdrafts here (source finance.co.nz).

Invoice Financing: Another costly option many SMEs turn to is invoice financing. This is when a business borrows against its unpaid invoices. So, instead of receiving the full payment I deserve for the work completed, I’m getting much less because I’m paying interest to the invoice financier.

Me and my family miss out: As the business owner when you don’t pay, the first people affected are me and my family. I can’t pay myself, or buy the tools I need, or pay tax that is due and yes even groceries go on hold.

Costs of Chasing Payments: A Hidden Tax on SMEs

Not only do I pay for financial tools like business overdrafts, but I also have to pay with my time. Chasing unpaid invoices, sending reminders, following up with phone calls, and issuing demand letters — all of this takes time. Time that could have been spent growing my business, taking on new clients, or even having a rare moment to breathe.

If I need to hire someone to manage accounts receivable and chase payments, that’s another expense added to my business. Or, if I need to employ a debt recovery service to get what’s owed, I’m forced to throw good money after bad.

Your Delays Don’t Stop My Costs

I understand that sometimes you might have to wait for a payment to come through or an unexpected expense might arise. But these aren’t my problems to solve, they are yours. When you hired me, you requested my services, and I delivered them professionally, on time, and with the quality you expected. I shouldn’t have to suffer financially because your circumstances have changed.

Every time a payment is delayed, I’m essentially extending you a no-interest loan. That’s not my job. I’m not a bank, and I didn’t set up my business to subsidise yours and I can’t afford to. Yet, this is what happens when you don’t pay on time — I’m forced to act as your personal bank, absorbing the costs of financing your business while you continue to benefit from my services.

A Better Way Forward

There’s a simple truth here: if you hire a service, you should be prepared to pay for it — on time, every time. But as an SME, I don’t want to waste my energy worrying about whether or not my clients will pay or even can afford to pay. I want to focus on what I do best: delivering the exceptional services that my clients need.

This is where IPromise comes in.

With IPromise, I stop being your bank and start getting back to what matters: running my business and delivering the top-quality services I’m known for. IPromise takes the uncertainty out of payments. I never have to worry about whether my customers can pay or deal with the hassle of chasing down late invoices again. Payments are secured upfront (in escrow), so I get paid as soon as the job is done, without any excuses.

You can’t tell the supermarket or petrol station “I haven’t been paid” or “an unexpected expense has come up” when you go to pay, so stop telling me!

Stop Financing Your Customers — Secure Your Payments Today

If you’re also tired of playing the role of an unpaid banker, it’s time to take control of your cash flow. Say goodbye to the stress of late payments, the costs of business overdrafts, and the wasted hours spent chasing after what’s rightfully yours. There’s a better way to do business — and it starts with securing your payments.

With IPromise, you too can focus on growing your business and delivering the services that matter, while we handle the rest. No more unexpected costs, no more banking on unreliable customers, just a clear, reliable cash flow that lets you do what you do best.

Learn more about how IPromise can help you focus on what truly matters in your business. Secure your payments, secure your future, and stop being your customers’ bank. Visit IPromise to find out more about the financial costs of business overdrafts and why there’s a better way to handle your payments.

So, next time you hire me – a skilled professional – remember: I’m not your bank. I’m here to provide a service, not a loan. Oh.. and I’m using IPromise.