“Our overdue receivables have practically disappeared from where they used to be.”
-Nathan Perry, Founder and Business Director
The Cutting Edge Elite
Starting a Business
Nathan Perry, founder and Business Director of The Cutting Edge Elite—a premier event staffing company in New York City—had been in the catering business for years and was poised with an opportunity to take his business to the next level. There was a clear demand to provide not only catering services, but be a one-stop provider of event staffing resources. Nathan and his partner were ready to be that supplier.
Once up and running, Nathan and his partner found that one of their biggest challenges was getting paid in a timely manner. Large events would require a large payroll to be delivered to employees, and a late payment from the client meant that they were faced with finding the cash to pay staff. “Employees won’t understand that a client hasn’t paid us so we can’t pay them”, said Nathan. “They just need to get their paycheck. We’ve always skipped payroll [for ourselves] to make sure our guys get paid.”
The next biggest challenge they faced was finding a partner that would provide payment options to their customers while not being a risk to their business. After trying larger merchant account providers who promised low rates, Nathan was astonished at the lack of service and communication regarding payment activity with their account—activity that could make or break their business.
In a specific case, a large payment was put on hold due to a data entry error, but he received no notification that the payment would not be deposited. Nathan was faced with a staff needing to be paid, and payment he wouldn’t see for 90 days. “They’re making a decision that decides whether we survive or fail, and no one could pick up the phone to let us know,” remarked Nathan. “You go into business and think, okay, I gotta focus on clients and make sure quality is good. And then you forget that if you have a vendor that locks up your cash flow without telling you, that can threaten your business.”
Finding a solution
Nathan found PaySimple online and thought the name seemed like just what he was looking for. After talking to a representative and discovering the focus on service that PaySimple promotes, he was ready to give it a shot.
Since he started using PaySimple, Nathan has experienced a number of benefits, the most important being: happier customers, faster payments, and what he describes as “a better experience.”
The Cutting Edge Elite uses PaySimple’s hosted online payment forms to collect payments from clients on their website. “A lot of it is just being able to say, ‘hey, you can go pay online and you get a payment receipt right away,’ and they know we’re going to [debit it] right there. And that’s made clients a lot happier,” Nathan explained.
With the online payment option, Nathan doesn’t have to wait for checks in the mail—especially those mailed on the day the payment is due. I’m almost embarrassed to say it, but we would carry about $20 to $30 thousand in past due receivables,” he admits, “and we’ve cut that by about 90 percent.”
Nathan is a big proponent of service, which he follows not only in his own business, but strives to find with his partners and vendors. “Honestly, it’s all about customer service,” he says. “Some companies don’t realize that even if they compete on price, they can cost a business owner so much time with bad service, that it’s not worth doing business with them. To be honest, everything has just been better since we started using PaySimple.”
Thank you, Nathan, for sharing your story.
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