Recent studies released show the average Australian food distribution business waits 26 days on average to get paid.
With 60% of business failure due to poor cashflow NOW is the time to address this pressing issue and implement changes that leverage future growth.
EasyVend has put together a guide on why getting paid is so important and how your business can get paid quicker.
AI-Driven Invoice Management for Faster Payments
In the modern distribution landscape, manual invoicing is no longer just a slow process; it is a risk to your stability. Modern automated invoicing system technology eliminates the “human error” factor that accounts for nearly half of all late payments. When invoices are generated with perfect accuracy regarding rebates, tiered pricing, and tax, there are fewer disputes and delays.
Transitioning to AI-driven management allows your business to move away from the traditional 30-day cycle. By adopting shorter, 7-day or 14-day terms, which are now industry standard, you ensure that money enters your accounts before your own utility and payroll obligations are due. This proactive approach turns invoicing from a back-office chore into a strategic advantage that accelerates your liquid capital.
Real-Time Payment Tracking and Predictive Cashflow Analytics
Traditional accounting tells you what happened yesterday; cashflow management software tells you what will happen tomorrow. The “soul-destroying” task of chasing payments often stems from a lack of visibility. With real-time tracking, you no longer have to guess which invoices are outstanding.
Predictive analytics takes this a step further by analyzing customer behavior. If a client typically pays on day 15, the system forecasts your cash position accordingly. This clarity allows you to make informed decisions about
- Purchasing new equipment
- Hiring staff
- Expanding your product range without the fear of a sudden cash shortfall
By understanding the timing of your “ins” and “outs,” you can maintain a healthy credit score and avoid high-interest borrowing to cover daily operations.
Late payments effect your bottom line
The most obvious reason is late payments affect your businesses bottom line. If you can’t get money into your business, you won’t be able to pay all your outgoings. There is only a certain amount of time any business can go without paying their outgoings until they reach a point where they need to close their doors.
Effects your efficiency
If there is not enough money coming into your business you won’t be able to pay your staff, rent and all your other monthly expenses. Not getting paid creates a high level of stress and anxiety. This often results in poor workplace performance. Your mind is often elsewhere and you and your team will need to focus on chasing customers for payment rather than focusing on the more important parts of the business.
Effects future growth
The biggest concern for vendors and distributors is poor cashflow effects future growth. The food and beverage industry is rapidly changing, ways you do business now may not be the solution that works in 2 years time. If you have to spend hours and hours of your time chasing up payments, you could be seriously impacting your future growth potential. You will find your business playing continuous catch up.
How to get paid on time
The good news for food distribution businesses is there are solutions available that help minimise the effects late payments have on your business.
Automate your payment process through a payment gateway:
A simple way vendors and distributors can reduce debtors is by implementing a payment gateway system. A payment gateway is an automated online service that instantly verifies or declines customer payments or credit card requests.
For food distribution businesses a payment gateway provides a solution that:
- Automatically sends customer invoices at the correct interval
- Automatically debits the payment is at the agreed time
- Instantly allocates the payment and creates a receipt for the correct invoice
- Manages complex discounts, rebate structures, multiple price levels and price adjustments
Automatically bill repeat customers:
Research statistics show that as much as 60% of customers are repeats. One of the most time-consuming tasks is sitting down and manually invoicing customers who place the same orders every week. A solution for this is to set up a system that automatically bills repeat customers with recurring orders.
A system like EasyVend allows customers to schedule recurring invoices based on customers favoured ordering days. This is so beneficial as it minimises the risk of not getting paid on time and opens your doors for future business growth.
Enforce customer credit limits:
Many businesses allow customers who already owe an amount, continue to order and accumulate more debt. This only impacts your cashflow and profit margins.
A way vendors and distributors can avoid this is to enforce customer credit limit amounts. By implementing a customer credit limit your customers will not be able to order goods from your business until the owed balance has been paid.
This limits the impacts on your business and forces your customer to act on the debt.
How EasyVend can help?
EasyVend Web by Jeal is a simple and adaptable food and beverage management software that automates all the daily tasks of running a food distribution business.
Using innovative technologies EasyVend reduces overheads and increases business efficiency and profits. With an included payment gateway, online ordering, stock management, invoicing, accounting and receipting, EasyVend has all the tools needed to manage your business seamlessly.
With over 38 years of experience creating solutions for food distribution businesses we understand your business. Call us today on 1300 473 744 or fill in the form below for a Trial EasyVend of EasyVend.
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FAQS
Why is getting paid on time critical for F&B distributors?
Cash is the oxygen of distribution. In a high-speed industry with thin margins, even a 48-hour delay can trigger a financial chain reaction. Punctual payments allow you to honor supplier commitments, protect your reputation, and pivot from weekly survival to long-term growth.
How can automated billing reduce late payments?
Delays in invoicing lead to deprioritized payments. Automation closes this gap by triggering invoices instantly upon delivery. By removing manual friction and using recurring billing automation for consistent orders, you make prompt payment the path of least resistance for your clients.
What features should a modern payment system have in 2026?
A 2026-ready system requires a built-in payment gateway and hands-free reconciliation. Beyond multi-channel nudges (SMS/Email), it needs “teeth” features like credit limit enforcement and upfront deposits to stop debt from accumulating before it threatens your bottom line.
How does predictive cashflow analytics help plan business growth?
Predictive cashflow management software replaces “gut feelings” with foresight. By looking months ahead rather than just at today’s balance, you can confidently time major investments like new fleet vehicles or warehouse space without risking a liquidity crunch.
Can AI-powered invoice reminders improve customer payment behavior?
Generic “overdue” notices are often ignored. An AI-driven automated invoicing system learns a client’s habits to send professional, conversational nudges at exactly the times when they are most likely to act. This targeted approach cleans up receivables without creating friction in the relationship.