Established in 2013 by Azmir Khalid, Splashtastik is a local swimming school offering a comprehensive range of swimming lessons specifically designed for babies, toddlers as well as children with special needs in a secure and controlled environment. Dedicated to providing a supportive and engaging learning system, Splashtastik is certified by Swim School International (SSI) - an organisation that stands as the paradigm for swim teacher certification worldwide. Their training initiatives combined with its certification requirements ensures that all swimming instructors and facilitators are capable of meeting the needs and abilities of swimmers of all ages, while also being committed to each child’s progression and development.
From a business' perspective, Splashtastik’s subscription-based model relies on its monthly intake, which meant that collecting recurring payments from customers were done manually and involved a huge amount of admin work, consisting of keeping track of student lessons as well as notifying the parents when payments are due, all while maintaining both it’s existing and new customers at the same time.
To have customers pay their monthly subscriptions on time every month; this is the dream of every business owner, may it be an SME or even a large corporation. Unfortunately, the reality may not always be that simple, as according to a survey done by SME Media Group and INTI International University, businesses were being paid on average of 94 days for invoices with 30-day payment terms.
And like most businesses operating with the same module, collecting monthly dues tend to be one of the most stressful periods of the month, if not the most time consuming. There are a number of ways why the disruption of cash flow can affect your business. Frequently, the main issue with late payments is that the message would often get lost in a mass of emails and text messages, as parents tend to forget to make the payment before the new term begins. The admin personnel will then be tasked to follow up with each individual customer until the fees are paid accordingly.
“Prior to partnering with Curlec, we have constantly encountered missed or late payments from our customers. A large portion of our efforts were put into managing time and manpower to resolve these discrepancies in our cash flow,” said Azmir Khalid, Founder of Splashtastik.
In seeking to improve its operational efficiency with regards to late payments, Splashtastik needed a system that was efficient enough to remove any concerns for both credit risk as well as debt recovery, and this is where the partnership with Curlec comes into play.
Incorporating a Direct Debit solution designed specifically to handle recurring payments, Curlec has enabled Splashtastik to easily collect payments in addition to automating the processes that could help overcome involuntary churn to ensure that they maintain a long term relationship with their customers. It solves the issue by creating a seamless payment cycle for the customer as funds from his or her bank account would get automatically debited on each due date.
Curlec has opened up the possibility for small businesses to use Direct Debit digitally as a method of collecting payment, which was not possible before. It eliminates the tedious traditional method by providing an up-to-date, cloud solution that streamlines the entire collection process.
A breakthrough system that turns payments into a competitive advantage
Not only does this help minimise overdue payments encountered by Splashtastik, but it also helped in reconciling unmatched payments, increased student retention, grew the conversion of long term students and encouraged newcomers to the program by automating these payment collections on a monthly basis.
Making large strides in payment efficiency, "Curlec has provided us with an improved sales proposition, while giving us the benefit of collecting regular payments with minimal input," explained Azmir.
We have seen a 30-40% reduction in our average collection period and improvements in cash flow as a result of taking payments using Curlec. We are now in control of our customer’s payments and cash flow.”
Summarising his thoughts on how Curlec has enabled his business: "This frictionless payment method has helped the parents to focus on the development of their children by providing a hassle-free payment experience. We believe that we have achieved this with Curlec."
If you would like to know more on how Curlec can help your business to collect recurring payments like Splashtastik, feel free to reach out to us here today.