The problem
Exhibition graphics, wedding stationery and big leaflet runs tie up stock and press time before a penny is paid. A customer who goes quiet after the job is printed leaves you holding the cost. If one large job a month is canceled or left unpaid after printing at a $200£150€179A$288C$282 loss, and chasing big invoices takes 2.5 hours a month, the cost adds up quickly.
What the AI does
Square Invoices sends invoices and estimates that customers pay online by card. Its free plan includes unlimited invoices and estimates, deposit requests and scheduled payment reminders. For any job over a set value, you send an invoice for a deposit, such as 50%, and the job goes to press only once it's paid. The balance invoice goes out on collection or delivery with reminders scheduled.
A worked example
A print shop in Southampton with 3 staff takes about 10 large jobs a month: exhibition stands, wedding orders and charity event print, averaging $532£400€476A$768C$752. It now asks for a 50% deposit by Square invoice on any job over $333£250€298A$480C$470.
Before
About 1 large job a month lost after printing ($200£150€179A$288C$282) and 2.5 hours a month chasing balances
After
Deposits paid before printing on 10 jobs (about $2,660£2,000€2,380A$3,840C$3,760 a month), with balance reminders sent automatically and chasing down to 0.5 hours
What it's worth
About $279£210€250A$403C$395 a month saved: $200£150€179A$288C$282 of stock and press time no longer lost on a canceled or unpaid job, plus 2 hours less chasing at an assumed $40£30€36A$58C$56 an hour. Square Invoices' free plan has no monthly fee; card fees of 2.5% online on $2,660£2,000€2,380A$3,840C$3,760 of deposits come to about $67£50€60A$96C$94 a month.
How to set it up
- Decide your deposit rule, such as 50% on jobs over $333£250€298A$480C$470 and on all new customers, and add it to your terms.
- Set up the Square Invoices free plan and add your business and VAT details.
- Send the deposit invoice with the proof, and start printing only when it shows as paid.
- Schedule reminders on the balance invoice, then check the unpaid list each week.
- Tell regular account customers the rule doesn't change their existing terms.
What goes wrong
- Card fees are 2.5% online. On large jobs, consider accepting bank transfer for the balance to keep fees down.
- A deposit rule applied inconsistently causes arguments. Write it down and apply it to every job over the threshold.
- Reminders only go out if the invoice was sent from Square. Jobs invoiced from another system won't be chased.
- Square's Plus plan ($27£20€24A$38C$38 a month) adds milestone payment schedules; the free plan's deposit request is enough for a simple deposit and balance.