A Note from Alternative Payments:
The story you’re about to read is a work of fiction, but it’s grounded in very real challenges that we see MSPs face every day. While Jim Sanders and TechGuard Solutions are imaginary, the struggles with late payments, cash flow issues, and the desire to break through revenue barriers are all too familiar for many of our clients.
Tanner Cookson, mentioned in the story, is indeed our Director of Sales, and the solutions and results described are based on actual outcomes we’ve achieved for numerous MSPs. We’ve seen firsthand how modernizing payment processes can transform an MSP’s financial health and growth potential.
As you read Jim’s journey, we invite you to reflect on your own experiences. If you find yourself nodding along, knowing all too well the frustrations of outdated payment systems, know that there’s a real solution waiting for you.
Now, let’s dive into Jim’s story and explore how Alternative Payments is revolutionizing the way MSPs handle their finances.
Jim Sanders, CEO of TechGuard Solutions, a promising managed services provider (MSP), sat at his desk, staring at the stack of unopened envelopes. He knew what was inside – checks from clients, some arriving weeks after invoices were sent out. As he sifted through the pile, a familiar sense of frustration washed over him.
TechGuard Solutions had been Jim’s brainchild for the past five years. He’d built it from the ground up, offering top-notch IT support and services to small and medium-sized businesses in the area. With $700,000 in annual revenue, Jim knew he was on the right track. But something was holding him back from reaching that coveted $1 million mark.
“There has to be a better way,” Jim muttered, eyeing the checks scattered across his desk. He’d been using the same “old school” method of collecting payments since day one – mailing invoices and waiting for checks to arrive. On average, it took clients about three weeks to pay after receiving an invoice. Some project invoices were even worse, with payments trickling in 8-10 weeks late.
Jim’s outdated payment system had become the antagonist in his growth story. It was draining his time, affecting his cash flow, and worst of all, forcing him to act as a bank for his clients. He knew that to break through the $1 million ceiling, something had to change.
As if on cue, Jim’s phone rang. It was his friend Mark, another MSP owner. “Hey Jim, how’s business?” Mark asked cheerfully.
“Could be better,” Jim sighed. “I’m drowning in late payments and paper checks. How do you manage it?”
Mark chuckled. “I had the same problem until I met this guy from Alternative Payments. They completely transformed our billing process. Why don’t I introduce you?”
The next day, Jim found himself on a video call with Tanner Cookson, the Director of Sales at Alternative Payments. Tanner’s friendly demeanor immediately put Jim at ease.
“So, Jim,” Tanner began, “tell me about the challenges you’re facing with your current payment system.”
Jim poured out his frustrations – the late payments, the time wasted processing checks, the strain on cash flow. Tanner listened intently, nodding in understanding.
“You’re not alone, Jim,” Tanner assured him. “Many MSPs face these exact issues. But here’s the good news – we have a solution that can transform your payment process and help you achieve your growth goals.”
Tanner went on to explain how Alternative Payments could streamline TechGuard’s billing process. “With our automated ACH payments, we can reduce your average payment time from three weeks to just four days,” he explained. “Imagine what that could do for your cash flow.”
Jim’s eyes widened. “Four days? That sounds almost too good to be true.”
Tanner smiled. “It’s not only possible, but it’s also what we’ve achieved for many of our clients. Plus, we can help you set up NET 150 terms for larger projects, giving your clients flexibility while ensuring you’re not left hanging.”
As Tanner continued, Jim felt a glimmer of hope. The solution addressed not only his payment processing issues but also offered a way to handle project invoices more effectively.
“We recommend implementing a policy where equipment isn’t ordered until it’s 100% paid for,” Tanner suggested. “And for project labor, a 50% deposit before work begins can help manage your cash flow better.”
Jim nodded, his mind already racing with the possibilities. “This sounds like exactly what I need. But how difficult is it to implement?”
“That’s the beauty of it,” Tanner replied. “We’ll work closely with you every step of the way. Our system integrates seamlessly with most PSA tools, and we offer a white-labeled payment portal that maintains your professional image.”
Over the next few weeks, Jim worked closely with the Alternative Payments team to implement the new system. There were a few hiccups along the way – some clients were hesitant about the change, and there was a learning curve for Jim’s team. But with Tanner’s guidance and support, they overcame each obstacle.
Three months later, the results were undeniable. TechGuard’s average payment time had dropped from three weeks to just five days. Late payments for project invoices were a thing of the past, thanks to the new deposit policy. Best of all, Jim’s cash flow had improved dramatically.
“I can’t believe the difference,” Jim told Tanner during their check-in call. “We’re on track to hit $1 million in revenue this year, and I’m not spending hours chasing payments anymore.”
Tanner beamed. “That’s fantastic, Jim! And with our reporting and analytics tools, you’ll have even better insights into your financial health going forward.”
As Jim hung up the phone, he glanced at his desk. Where once there had been piles of checks and invoices, there was now just his computer, displaying a dashboard of real-time payment data. He smiled, thinking about how far TechGuard Solutions had come.
The journey hadn’t been easy, but with the right guide in Alternative Payments, Jim had transformed his billing process and set his company on a path to greater success. He knew that as TechGuard continued to grow, the scalable solution provided by Alternative Payments would grow with him.
For Jim, the days of being “the bank” for his clients were over. He was now free to focus on what he did best – providing excellent IT services to his clients and growing his business.
As he looked out his office window, Jim couldn’t help but think of other MSP owners still struggling with outdated payment systems. He made a mental note to share his experience at the next industry meetup. After all, if Alternative Payments could revolutionize TechGuard’s billing process, imagine what it could do for other MSPs facing the same challenges.
