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Own an SME? Use Peasy to let your clients earn Avios by paying your invoices promptly

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Avios has launched a new partnership with Peasy – a company that helps businesses improve their cashflow by offering Avios or a donation to charity in return for paying bills and invoices early.

This is how it works:

you sign your business up to Peasy

you send your invoices out as usual

if your customer pays within credit terms Peasy will award the customer Avios or send money to a charity as a reward. The earlier they pay, the bigger the reward.

The service is free to users, and companies only pay for the amount of Avios or the donation.

You can also pick up Avios for referring a company to Peasy, if you don’t own one yourself – more on that later.

How does Peasy work?

Late payments are a big concern for many businesses – especially smaller or new companies.  According to Peasy, around 24% of all UK businesses see late payments as a threat to survival and this number has recently jumped to 68% due to the impact Covid-19 has had on the economy.

Rather than simply hoping their clients pay on time, Peasy encourages companies to build a relationship with their client base by offering a percentage of the invoice amount as an incentive for paying early.

The amount is chosen by the invoicing company, but is usually between 1%-5% of the invoice value. The higher amount is for earlier payment, the lower is for payments within terms. The value reduces dynamically over time – which means the quicker the payment, the bigger the rewards.

Customers who do not want to receive Avios can donate the value of their reward to one of Peasy’s partner causes including NHS charities, Cancer Research UK and Trees for Cities.

David Landsberg, co-founder and Managing Director said about the launch:

“We’re excited to be launching Peasy – a first-of-its-kind. The platform is designed to give businesses an edge and level the playing field so businesses with access to funds are incentivised to prioritise paying those without. We believe that as businesses return to a sense of normality following lockdown, they can leave behind their old collection practices and focus on improving their cashflow and strengthening the economy without having the distraction of chasing debtors. It really is time for businesses to draw a line in the sand and take control of their cashflow for greater certainty ahead.”

Why should a company work with Peasy?

Peasy feels that there are numerous key benefits to signing up to offer Avios to your client base:

  • Over 40% increase on payments received within agreed terms (as per a test run with the National Association of Shopfitters)
  • Improved cashflow without taking on more debt
  • Enhanced customer relationship and loyalty
  • Significant reduction in cost and time chasing payments

The entire process is seamless and automated. Peasy connects to all major accounting software, is quick and simple to link, and just requires the invoicing business to decide the overall level of rewards as a percentage of invoice value. As each invoice is raised, Peasy presents the customer with a dynamically reducing incentive according to how quickly the invoice is paid.

The service is free and companies only pay for the value of the rewards. If a client doesn’t pay on time, there is no fee at all for the company.

Get 3,000 Avios for signing up, or referring another business

To launch the service, Peasy is currently offering 3,000 Avios to anyone who refers a business to Peasy which subsequently signs up.

We have agreed with Peasy that you can self-refer your own company.  This gives you some personal incentive for taking a look, although in the long run the big winners will be your customers!

How do I refer a company?

You need to sign up as a referrer on the Peasy referrals page here.

Once you’ve submitted your details, you will receive an email confirming you as a referrer and asking you to send in a list of potential companies.  This can include your own company.

How many Avios do I earn?

If you don’t own a business, you can still earn Avios by referring other companies to Peasy.  This is what you will receive:

    • You get 3,000 Avios (or £35 to charity) for the first referral
    • You get 250 Avios (or £3 to charity) for the second to fifth referral
    • After five referrals the scheme refreshes and you get 3,000 Avios for the sixth referral, 250 for the 7th- 10th and so on

Avios will be awarded for every qualifying referral which is a business that meets the following criteria:

    • Is UK registered and VAT registered
    • Extends credit to >50% of its customers
    • Does not exclude >25% of customers from receiving reward offers
    • Has an average invoice value >£250
    • Remains a user of Peasy for a period of 3 months / £100,000 invoices (whichever is sooner)

Rewards are paid out once the business has qualified, subject to point 5 above.

3,000 Avios is a special offer for Head for Points readers and you need to use our referral link to nominate your own business (or someone elses) as the general site only rewards 2,500 Avios per referral.

Is Peasy right for you and your business?

Not every business will benefit from using Peasy.  You need to think about your client base – do you have issues with late payment at the moment, and are your debtors the sort of people who would value an Avios incentive to pay more quickly?

If you think that it might, you can enquire via the link above.

(Want to earn more Avios?  Click here to visit our home page for the latest articles on earning and spending your Avios points and click here to see how to earn more Avios from current offers and promotions.)

Comments (47)

  • Genghis says:

    “ do you have issues with late payment at the moment, and are your creditors the sort of people”

    Creditors should be debtors.

  • Ken says:

    A very expensive way of funding working capital.
    Schemes like these reward those who pay within or just outside terms and rarely gets the problem customer to pay on time.

    • David says:

      Hi Ken
      Depending on how you set you rewards, Peasy’s usually no more costly than Invoice Discounting – but the crucial point is that Peasy’s about collecting debtors, not borrowing more. Most businesses tend to address the symptoms of poor cashflow by borrowing more. Peasy addresses the root cause by getting invoices paid!
      Also – the rewards dynamically reduce over the term of credit – and we found even good payers paid quicker, and overall, payments within terms improved by 40%.

      • ken says:

        Hi David,

        I’ve never been a fan of invoice discounting either !

        I do hope it works though as slow payment is a scourge in the UK (certainly as opposed to Northern Europe) but suspect it needs a huge cultural change for businesses and accountants.

        Some large business behaviour is shameful.

  • Andrew says:

    “companies only pay for the amount of Avios or the donation”

    And how much does an avios cost the company? Do Peasy expect a commission? Some rather important details are missing from the advertorial.

    • Ian M says:

      Haha yeah, the most important question – how much does the avios cost the invoicing company? – is not addressed.

    • Ian M says:

      Even the pricing section of the Peasy website doesn’t tell you! Useless

      • David says:

        Hi Ian
        The point of Peasy is its up to the invoicing business to decide the value of the rewards by setting the % of invoice value they choose for a) Immediate payment b) Payment within terms.
        It’s pre-set at 5% (immediate) down to 1% (in terms) but can be flexed up or down.
        Sorry if it’s not clear…
        David (Founder)

        • Andrew says:

          It really isn’t clear David.

          We get that you can choose what percentage to give away in rewards but how much does it cost a company to award a customer 1 avios?

          If I want to give 1% on a £1000 invoice how many avios will that customer end up getting?

        • Ian M says:

          Hi David,

          Thanks for the reply, but like Andrew says, it really isn’t clear at all. I can’t find the information anywhere on your website.

          • David says:

            If you issue an invoice for say £1000, and have setup reward values as 5% for immediate payment and 1% for payment in terms, the Avios awarded would be 4000 (immediate payment) down to 800 (payment in terms). Approx. 1.2p each. Hope that answers your point.

          • Mawalt says:

            If you ask Rob, he will tell you never to buy Avios at 1.2p, so this is clearly a non-starter.

          • Rob says:

            But that’s not the question. The question is whether offering your customers 4 Avios per £1 to pay their invoices quickly is worth it to your business, or whether it is more effective than a 5% prompt payment discount (which is taxed).

    • Easy Peasy says:

      Oddly the only place it tells you is on the referrals website

      https://www.peasyreferrals.com/rewards-for-paying-on-time

  • JamesCM says:

    What’s SME stand for? In my line of work it’s Subject Matter Expert but it’s obviously not that in this context.

  • HAM76 says:

    Hmm, maybe I’m sitting in my own little bubble, but for us most late paying customers belong to two groups. Larger corporations and public entities that either pay late or demand corresponding payment terms upfront. These customers can’t use Peasy due to compliance issues. The other group is consumers and small businesses that don’t have the money to pay all invoices and tend to pay whenever money comes in. Their behavior doesn’t change.

    The small business owner that pays late, but has the money to pay earlier and is a small enough business so that owner benefits from the Avios and hasn’t to deal with compliance issues, seems to be quite a niche market to me. Mostly they negotiate a rebate for early payments, anyway.

    • Chrisasaurus says:

      Well in this case, least would be a defacto debate and Would also nearly standardise the rebate offer, potentially helping with those customers who would otherwise insist on a slightly better deal every year

      And it depends who you are as a business. A lot of us deal exclusively with small to medium businesses where if our invoices aren’t such a chunk of our customers cash flow as to make it irrelevant, could drive behavioural change.

      But, still no idea what 1% actually means to the customer or whether peasy take a slice on top

    • David says:

      We’ve found that even businesses who pay slowly, (or suffer poor cashflow) will prioritise paying invoices that work in their best interest first. Peasy won’t get invoices paid if they’re bankrupt – but it will get your invoice to the top of the ‘pay first’ pile.
      Unlike any other ‘settlement’ terms – Peasy reduces dynamically – so the quicker the payment, the bigger the reward.
      Peasy’s primarily aimed at SMEs, and our Enterprise version will be more equipped to serve big business as the only option will be charitable donations, which will appeal to their CSR responsibility.
      David (Co Founder)

    • memesweeper says:

      ‘Larger corporations and public entities […] can’t use Peasy due to compliance issues’

      You might be surprised to find that they will. 🙂

  • MT says:

    What I don’t like is they seem to hide the bit of information that is the thing everyone will want to know. How many avios the customer gets. If they pay a 10k invoice and get 5% saving thats £500 but how many avios are they getting for that as peasy pockets the £500.

    Makes me suspicious when such obvious and important details are missing. Maybe I am going blind but it really didnt jump to me!

    • Chris H says:

      Totally agree. If £500 gets them Avios at 5p an Avios point, then I would rather offer them the cash discount. If they get 1p or better value, then I would offer them the points. Is that not the advice Rob normally offers as value?

      • Rob says:

        But the value of a point to a specific person varies. BA sells plenty at 1.6p each (actually more for smaller quantities) when they are not on promotion. If you need a few to top up you will pay more than if you are looking at getting 100,000 from scratch.

        You also miss a big point – tax. If I reduce HFP expenses by £5 then I only personally pocket £2.50 after tax and NI. 500 Avios is therefore substantially more attractive to me than a £5 prompt payment discount on an invoice.

        The reason Avios generally works as an incentive is that you are usually giving someone something which they value at MORE than you pay for it.

        The reason Nectar failed, essentially, was that everyone knows a point is worth 0.5p but businesses had to pay more than 0.5p for them (so Nectar made a profit). This meant that it DID actually make sense to give cash and not points to the general public.

        • MT says:

          I agree the value varies per person, but what it seems impossible to find out is how many avios a customer is going to be offered for the discount. Before I would sign up / offer a product to my clients I need to know what I am offering them. I would never dream of associating myself with something that could harm my reputation. If it is not a set amount, can you imagine if I had 2 clients one got offered 1000 avios for the same discount as another got offered 1500 avios, even though it isn’t me making that decision they are going to hold me responsible.

          My point is simply the most important detail of the scheme is not mentioned and this cannot be an accident, thus I do not see this as something I would associate my reputation with.

          • David says:

            If 2 customers are sent the same value invoice, the only possible way they could get differing amounts of rewards would be because one of them paid quicker.
            David
            (Founder)

        • ken says:

          “You also miss a big point – tax.”

          I’m no tax expert but for this type of scheme its possible that inland revenue would consider them a benefit in kind.

          Why ?

          They are not incidental like a flight but would likely be considered as being provided soley by reason of their employment.

          Would be interested if Peasy had a view on this.

          • Rob says:

            There is a general HMRC rules that miles have no value. BA and Amex wouldn’t (easily) be able to have points-earning business credit cards otherwise.

          • ken says:

            “There is a general HMRC rules that miles have no value”

            This isn’t quite true (see HMRC EIM21618).
            Its really BA who say they have no cash value

            There is no BIK because the airmiles belong to the employee as soon as they are earned by flying in the normal course of their job & earned at the same nominal rate as all customers of the airline.

            Otherwise you would have employers buying airmiles (or petrol vouchers) and distributing them to evade NI and PAYE

            This seems much closer to an employer buying miles and distributing them and an employee therefore benefiting.
            Or the benefit in kind for a directors interest free loan.

            Would you ever get assessed ?
            Highly unlikely.

          • Rob says:

            It is a rebate, in EXACTLY the same way that getting miles for business credit card spend is a rebate. Rebates are not taxable.

      • Andrew says:

        Normally Rob would. I understand that HFP needs to make a living so occasionally we’ll get paid articles which don’t offer stellar value but the fact that this doesn’t mention the conversion rate and the founder has been on commenting but has refused to give this simple piece of information suggests that the rate will be atrocious.

        • Rob says:

          We’re not paid for this article. If we were it would say so.

          • Andrew says:

            And is HFP and/or yourself acting as a referrer earning avios for new sign ups? If so then effectively it’s a paid article even if you’re not paid up front. There’s nothing wrong with that but don’t try to pretend that this isn’t an advert.

            Either way there’s absolutely no reason not to give us the basic piece of information which is how many avios the end customer is going to end up getting. If I’m losing £500 on a 10k invoice I want to know if the customer is getting 50000 or 500 avios. Without knowing this it’s impossible to know how tempted customers will be to pay early and therefore how useful the service is.

          • Rhys says:

            Most of our articles include affiliate/referral links, which is why you’ll see the affiliate disclaimer underneath the title.

            Sponsored (paid) articles are different – the sponsoring company get editorial control of the article. Peasy didn’t get editorial control of this article and we weren’t paid a lump sum for publishing it so it isn’t a sponsored article.

      • David says:

        If the invoice is £1000 and the reward’ for immediate payment is set as 5% then either £50 goes to charity, or they take 4000 Avios.
        David
        (Founder)

        • Andrew says:

          Is the rate always 1p -> 0.8 avios?

        • Chrisasaurus says:

          Perfect thanks for the clarity David

        • MT says:

          Thank you for the reply and I assume that is the rate of conversion. That I think is what everyone here has been wanting since the article posted as it gives us a lot more understanding.

    • AJA says:

      It is definitely opaque as the scheme assumes that the customer is happy to receive a discount in exchange for some Avios but you can’t tell them how many Avios that is.

      Also who actually gets the Avios? If your customer is an individual it’s clearly they who benefit but assumes they’re Avios collectors. If it’s a company I don’t think they earn Avios, I thought only individuals could be members of BAEC or any if the other Avios earning FF schemes. I think businesses would have to be members of On Business which is a different parallel scheme paying On Business Points.

      The scheme will actually cost those who enrol 1% to 5% of their revenue irrespective of the number of Avios the customers actually get.This is not a venture I’m interested in but YMMV.

      • AJA says:

        I’ve just seen the founder’s response to another post above, if your customer is a business they will only be able to make a donation to charity.

        • ken says:

          I think it referred to large business – who inevitably run a mile of “off book” incentives (unless of course its a pair of tickets to mens semi finals at Wimbledon for the CEO).

          Customers in my experience are utterly predictable.
          You know the ones who will pay early, the ones who pay end of month without needing a statement.
          The ones you have to send ‘copy invoices’ to, the ones who need chasing a little, and the ones you need constant chasing.

          You probably know the ones likely to go bust in the next 5-10 years as well but make the calculation that the margin is enough to take the hit.

          I’d love to be persuaded that this kind of scheme gets the delinquents to pay on time – but I have my doubts.

        • David says:

          No…. busnesses can take Avios or donations to charity!
          And the points can be distributed anyway the business chooses – in the same way Capital On Tap or American Express Business. Once points are earned, they can be put into any BAEC or Avios account.

    • David says:

      If the donation’s made to charity, it’s £500. If it’s taken as Avios, it’s 40000.
      David (Founder)

      • ken says:

        Fair play David, that seems very reasonable.

        Thanks for taking the time to respond.

  • Freddy says:

    At least it is a better business idea compared to the luggage rental service that got plugged a while ago

  • Jason says:

    Great idea! I would prioritise every month paying a supplier early that would offer me Avios as a reward rather than paying a company offering no reward. If you have the cash in the bank pay early and receive Avios……..and if I can pay the invoice using my BA Amex as well…..you’ve got my business………lol

    • Erico1875 says:

      I remember paying one (agreeable) boiler supplier £1000s with 3V cards. I just emailed him a list of 16 digit nos, exp dates etc. He thought it a bit nuts but was happy for the business.