Reduce Overdue Invoices With Maxio: Using Retries and Dunning Schedules
Most SaaS professionals are familiar with the leaky bucket analogy.
While a SaaS company may generate consistent MRR/ARR (i.e. the water), it’s commonly offset by churn, a failure to upsell/cross-sell, and late and missing invoices (i.e. the holes in the bucket). Variables like churn and missed monetization opportunities are generally more complex problems that touch multiple parts of an organization, however, late/missing invoices should never be a problem.
Unfortunately, without a clear dunning strategy, it’s near impossible for a fast-growing SaaS company to keep up with all the individual invoices that need to be followed up on month-to-month. This is why Maxio gives you the ability to collect on invoices—no matter your GTM structure (PLG or SLG). Here’s what they look like in practice.
Collect on late and missing invoices with Maxio
If you want to add a dunning cadence to your subscriptions:
1. In Advanced Billing, select the ‘Config’ dropdown and select ‘Retries & Dunning’.
2. From here, you have a few options. Under general settings, you can select the desired email that you want your dunning communications to be sent from. You also have access to remittance dunning settings, or how many days after an invoice has been sent will it go into remittance.
3. From here, you can set up a retries and dunning schedule based on your preferred payment method. For this example, we’ll be using ‘Card Dunning’ as it’s the most common payment method.
4. Once you’ve selected your preferred payment method, you can select ‘Create Dunning Schedule’ and choose a template to keep things simple.
5. Or, you can create a custom dunning cadence to account for mid-period expenses, deploy dunning if signup payment fails, and gain greater control over each step in the dunning process.
No more chasing down late or unpaid invoices
What do Maxio's retries and dunning look like in action?
Gone are the days of keeping up with collections in a spreadsheet, sending out one-off emails, and covering desks in Post-It note reminders. Bethany Stachenfeld, Co-founder & CEO at Sendspark, and her team used Maxio’s Cadences and Dunning features to streamline their collections communications with personalized, automated messages that can be sent in custom time frames.
Something that works behind the scenes for us is the dunning feature. If someone's credit card expires, Maxio is going to send out emails on our behalf that remind people to update their credit card. As soon as we got started with Maxio, we went from not being able to charge users, to fully automated processes.
— Bethany Stachenfeld, Co-founder & CEO at Sendspark
Fixing your cash flow problem
Aside from Maxio’s dunning and retry schedules, our A/R Management capabilities allow users to reduce their A/R balance, drive down Days Sales Outstanding (DSO), and give their customers multiple ways to pay through our e-payment integrations.
Want to get cash in the door faster? Schedule a demo with our team to learn more.