If you’ve ever issued an invoice to a client, you’re probably aware that using due dates is a good way to increase the chances you get paid on-time. However, there lies an underlying issue. Due dates are simply terms written down on a piece of paper.
We change this paradigm with Request Invoicing by letting you use your invoice due dates to automate what happens when payment of the invoice is overdue.
How does it work?
Invoices issued through Request Invoicing use an underlying public database technology called the blockchain. It is used to provide a single source of truth regarding invoice information, status and payments due.
Because of the connection between the invoice and its’ real-time payment status, these invoices can be programmed to perform certain actions when pre-set criteria are met. The set due date is one of these criteria.
Let’s sketch a scenario where we have an invoice which was issued at the beginning of the month, with a due date of 30 days.
In traditional invoicing, the issuer of this invoice is expecting payment within approximately 30 days, with a reasonable probability of the invoice becoming overdue for a couple of days while the recipient finishes his payment process for the month. There are no real incentives for the recipient to pay on time except for his/her relationship with the issuer.
With Request Invoicing, missing an invoice due date can programmatically alter the conditions of the invoice by automatically adding in late fees or sending a reminder email with a link to pay.
This is a real incentive for payers to act in good faith and pay on-time, helping facilitate business with clients.