We all remember our parents saying. ‘You can save up and buy that skateboard for yourself’. They never said ‘go to the shop and get it now you can pay it off in 4 equal monthly instalments, it doesn’t matter if you don’t have the money’.
Work, earn, save then buy and don’t spend what you don’t have. Simple yet important principles drummed into most of us from a young age.
We probably also remember our parents saving up for some house renovations… ‘In a few months’ time we will have saved enough to do-up the laundry’. I am pretty sure not many people said let’s book up a tradie and hopefully by the time it comes to paying the invoice we have enough money in the bank. With over 7.4b in unpaid invoices in Aotearoa New Zealand we know it’s actually what many people are doing. Even if it’s not deliberate, circumstances change and invoices are not getting paid. People are booking up work from builders, electricians, engineers and hoping they will be able to settle the invoice after the job is done.
So the initials BNPL (Buy Now, Pay Later) which we think should be more correctly called TNPL (Take Now, Pay Later) unfortunately apply to the service industry as well. A tradie can be engaged, the work is done and the client ‘Pays Later’. Of the 7.4 b in late invoices 42% are because of insufficient client funds.
We need to break this cycle and move to a fairer and more secure payment process. Back to the basics of actually having the money in the bank before the supplier is engaged. If you don’t have the money, you shouldn’t ask for the job to be done in the first place.
So rather than TNPL we need to move to SPJD. Secure Payment Job Done. That way everyone has confidence that if the job is delivered (as per the quote) the supplier will be paid instantly.
The move to SPJD removes the need for credit checking, invoicing, following up on unpaid invoices. It also just about wipes out the need for the billion dollar debt collection / disputes industry. Suppliers no longer need to be the bank for their Clients and the millions of dollars of unsecured overdrafts, that are required to bridge Supplier cashflow from job to job, are not needed anymore.
IPromise, the new SaaS revolution that makes all this happen from your phone or desktop. The service industries like tradies, engineers and contractors are aligned to other instant payment industries like dental and automotive industries who demand instant payment when the job is done.
IPromise operates on the old fashioned principle that the Client must show the Supplier they actually have the money and the Supplier is guaranteed that money when the job is done as promised. The Client also does not have to supply large deposits for unseen work as the Supplier can transparently see the money is there and protected as long as the job is done as agreed.
Let’s get back to basics and save up for that skateboard or laundry renovation before we receive the goods or engage the Supplier for the service.
All of this is made possible by IPromise, your fair and secure payment partner. For more information about how IPromise can benefit your business, or upcoming projects, use the links below: