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.)