No more ‘HOLD’ notices; new startup 3Pay is helping small businesses pay suppliers on time

3Pay founding members Barry Dillon (left) & Johann Hardarson (right)


By Loren Webb

New startup on the block, 3Pay, has officially launched today.

Born from a vision of helping Australian small business thrive, the five founding members are bringing a payment service option to the market in order to reduce the number of businesses that are placed on hold with their suppliers each month due to cashflow issues.

With clients signed up even before launch date, small businesses seem to have a real requirement for the service.

3Pay enables customers to settle their supplier invoices on their due date by paying the supplier on their behalf and providing payback options over 3 months. Their supplier account therefore doesn’t get put on hold (which could force them to source goods form other, possibly more expensive, suppliers), which in turn means better quality, more reliable working relationships as well as less stress with cashflow each month.

The founder (ex-banker turned CFO), experienced first-hand placing customers hold every month due to overdue invoices. From the supplier perspective, he realised the company was losing future sales from customers that were on hold, and this prompted him to rethink the current financing options available to the customers at the other end.

“Last year when we had a staffing change I became more involved in overseeing the management of the debtor’s book. Some customers would buy from us and not pay within their trading terms and hence get placed on hold. We’d be placing up to 10% of our customers on hold each month due to this. 

“But our customers had a business to run and couldn’t stop trading, so if they were put on hold by us, their A Supplier, they then had to go to their B Supplier to buy goods while on hold with us, even if it meant them paying more for the goods at B Supplier.

“This worried me. The customer was paying more for the goods at B Supplier, and we as A Supplier were losing out on sales – we were both losing in this equation, the customer was paying more and we were losing sales – this just didn’t make sense. The only winners in this equation was our competition, B Supplier.

“Existing financing didn’t seem to provide the piecemeal financing aspects which was required, the ability for a customer to simply email an invoice and have it paid.  They can now email their invoice to 3Pay and have it funded on it’s the due date, then repay 3Pay over 3 months, either monthly or weekly.”

As well as benefitting customers, 3Pay also helps suppliers by providing a payment option on the bottom of the supplier‘s invoices. There are no fees for the suppliers and they receive 100% of their invoice on the due date. Typically suppliers should see increased sales from accounts not being placed on hold and customers therefore sourcing goods or services elsewhere.

Learn more about their startup and story over at https://3pay.com.au/

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