Cloud Cuckoo Cocktails went from 30 to 40-day waits to guaranteed payment in 14 days
A Melbourne beverage supplier to bars, bottle shops, events and festivals put every new account through a PencilPay credit application with 14-day terms and automatic collection on the due date. Average debtor days fell from 30 to 40 days to 14, and every new customer has paid on time since.
- Customer
- Cloud Cuckoo Cocktails
- Industry
- Alcohol distribution
- Location
- Melbourne, Victoria
- Payment terms
- 14-day terms, $1,000 to $2,000 opening limits
- PencilPay products
- Pencil Trade, Pencil Pay
- Integrations
- Standalone
- Headline result
- 14 days down from 30 to 40
Before PencilPay
Cloud Cuckoo Cocktails produces and supplies pre-batched cocktails, kegs, canned drinks and bottled spirits to hospitality and retail venues, from bottle shops and bars to large events and festivals.
A few customers never paid their invoices, which exposed gaps in credit approval. Payments that did arrive typically took 30 to 40 days and needed repeated follow-up. The business wanted secure credit terms, automated collection and predictable cash flow.
What Cloud Cuckoo Cocktails implemented
Credit application by link
Instead of managing approvals by hand, the team sends a link. The customer completes the application and all legal and trading information is collected upfront.
Collection on the due date
Payments are processed automatically on the agreed date, so there is nothing to chase.
Controlled credit limits
New customers start on 14-day terms with a $1,000 to $2,000 limit, increased on trading history or a personal guarantee.
Stronger supplier position
With cash arriving on time, Cloud Cuckoo negotiates early-payment deals with its own suppliers.
What changed
Debtor days: 14
Average debtor days fell from 30 to 40 days to 14 days.
Every new customer paid on time
Since implementing PencilPay, no new customer has missed a payment.
Zero follow-ups
Automation removed invoice chasing entirely, freeing time for growth.
Cloud Cuckoo Cocktails on PencilPay
About this story
What terms does Cloud Cuckoo Cocktails offer new venues?
14-day terms with an opening credit limit of $1,000 to $2,000, increased based on trading history or a professional guarantee.
How did debtor days change?
From 30 to 40 days before PencilPay to 14 days after, with every new customer paying on time.
How are credit applications handled?
The team sends a PencilPay link. The venue completes the application online and the payment authority is captured in the same step.
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