For most finance teams, improving cash flow often comes down to one thing: getting customers to pay sooner.
The challenge is that traditional collections strategies are largely reactive. Businesses send reminders, escalate overdue invoices, and invest significant time and effort chasing payments after due dates have passed.
But what if you could influence payment behaviour before an invoice becomes overdue?
Today, we’re excited to introduce Early Payment Discounts & Late Payment Penalties, a powerful new capability designed to help finance teams proactively shape customer payment behaviour, accelerate cash collection, and improve working capital outcomes.
Move Beyond Chasing Payments
Every customer makes a decision about when to pay.
Some pay early. Some pay on time. Others consistently pay late.
Historically, finance teams have had limited tools to influence those decisions. While reminder workflows and collections processes remain important, they only come into play after payment behaviour has already occurred.
Early Payment Discounts & Late Payment Penalties gives businesses a direct mechanism to influence payment timing by creating meaningful financial incentives and consequences.
Reward customers who pay early. Create accountability for those who don’t.
The result is a more proactive collections strategy that encourages the payment behaviours your business wants to see.
How It Works
The feature allows finance teams to create flexible payment policies that combine:
Early Payment Discounts
Encourage faster payments by offering customers a discount when invoices are paid before a specified date.
This creates a clear financial incentive for customers to prioritise your invoices and pay sooner.
Late Payment Penalties
Discourage delayed payments by applying penalty charges when invoices remain unpaid beyond agreed terms.
This helps reinforce payment expectations and creates greater accountability around payment commitments.
Flexible Policy Management
Businesses can create tailored policies based on customer segments, industries, risk profiles, or strategic objectives.
Rather than applying a one-size-fits-all approach, you can align incentives and penalties to the customers where they will have the greatest impact.
Time-Bound Campaigns
Run targeted campaigns with configurable start and end dates.
Whether you’re looking to improve quarter-end cash flow, reduce aged debt, or support a specific business initiative, campaigns can be launched for defined periods and adjusted as needed.
The Business Impact
While discounts and penalties are familiar concepts, the real value lies in their ability to influence customer behaviour at scale.
By encouraging customers to pay earlier and discouraging late payments, organisations can unlock meaningful business outcomes:
- Accelerate cash collection
- Improve cash flow predictability
- Reduce overdue receivables
- Lower Days Sales Outstanding (DSO)
- Strengthen payment discipline across the customer base
- Reduce manual collections effort
- Improve working capital performance
For finance leaders, this means greater control over cash flow and less reliance on reactive collections activities.
A New Lever for Finance Teams
Collections automation has transformed how businesses manage overdue accounts. But improving payment behaviour requires more than reminders and follow-ups.
Early Payment Discounts & Late Payment Penalties introduces a new lever that allows finance teams to actively influence customer payment decisions before an invoice becomes overdue.
It’s a shift from chasing payments to shaping payment behaviour.
And that’s where the greatest opportunity lies.
Now Available in Beta
Early Payment Discounts & Late Payment Penalties is now available in Beta.
We’re excited to work with customers to help them drive faster payments, improve cash flow, and create more effective accounts receivable strategies.
If you’d like to learn more, speak with your Account Manager, Customer Success Manager or contact our sales team to see the feature in action.
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