PencilPay
PencilPay is a cloud-based onboarding and credit management system for wholesale suppliers, manufacturers, and distributors.
Features include:
Letting trade customers can apply for credit, enter their ABN, and onboard in 90 seconds.
Performing a quick credit or cash flow check for customers before approving or rejecting a credit application.
Recommending which customers should get credit, including credit amounts and payment periods.
Ensure ongoing monitoring and timely payments from new and existing customers.
Connecting with accounting software
Get payment confirmation before shipping.
When you connect Cin7 Core with PencilPay, PencilPay automatically generates digital credit applications for your website with your branding. New customer information and contracts automatically populate Cin7 Core and the risk tools kick into gear. PencilPay also automatically imports and matches your customer data to begin monitoring of customer credit files.
NOTE: PencilPay requires an API license to connect. Cin7 Core API licenses can be added to your subscription from the My subscription page.
Prerequisites
Xero account
Sign up to PencilPay with pencilpay.com (Free trial is sufficient)
Users will need the Settings: Cin7 Core API Setup permission to generate API keys from Cin7 Core.
Basic information
PencilPay offers a central hub to manage risk, receivables, payables, contracts, and customer onboarding. For your customers, it offers a secure portal to register with suppliers, centralize contracts, view and pay invoices and manage their trade credit.
PencilPay is currently only available for customers in Australia and the United States. PencilPay will be available for customers in New Zealand in May 2025.
PencilPay pulls from Cin7 Core:
Trading terms
Credit limits
Custom tags (if applicable)
PencilPay pushes to Cin7 Core:
Company info
Delivery info
Accounts info
Contact info
Contracted trading terms and credit limits
Cin7 Core also syncs invoices and payments with Xero, which in turn pushes invoices and payments to PencilPay.
Connect to Xero from PencilPay
First you will need to connect your Xero account to PencilPay. If these accounts are already connected you can skip this step.
Log in to your PencilPay account.
Select Integrations.
Select Xero and follow the prompts to connect your account and sync all of your customer contacts and invoices to PencilPay.
Connect to Cin7 Core from PencilPay
The next step is to integrate PencilPay with Cin7 Core. This will push across your business trading terms and credit limits and synchronize overdue invoices with PencilPay. You will need to generate an API channel in Cin7 Core.
Select Integrations from the main menu, then API.
+ Add a new API connection.
Enter a name for the API (e.g. PencilPay)
Click Create to complete generating a new API connection.
Cin7 Core then creates the API Account ID and Key under the Setup tab. You will need both pieces of information to connect Cin7 Core to PencilPay.
Click Save.
Go to your PencilPay account and the Integrations page.
Select Cin7 Core.
Enter the Account ID and Key you generated in Cin7 Core.
Save your changes.
Configure customer portal
Connecting Cin7 Core to PencilPay synchronizes your payment terms and credit limits. The next step is to configure your customer portal for credit applications and embed it into your website.
In PencilPay, open the Credit forms menu to prepare your customer portal.
Use Credit Forms Terms and Conditions, Credit Limits, Credit Form Design, and Trading Terms Settings to customize your customer portal.
When you have finished, go to Embed Credit Form and copy the HTML code, add it to your website's HTML, and embed the credit form into your website. This creates the portal where customers can onboard, check their balance and pay their bills.
This form can be used by any customer that wants to go on account either via your website or in store.
Onboard customers
Existing customers can onboard quickly to PencilPay by accessing your customer portal.
First, they must access your customer portal, either through your website or via direct link.
Next, they must enter their ABN and company details.
Next, they must enter their name and email to receive instructions to go through verification. The customer must be verified by PencilPay so it can process payments on your behalf.
The customer can then select the Payment term and Credit limit they wish to apply for. Based on the terms selected, the information required will dynamically change. This could be two or three trade references, a personal guarantee, the director's details, or the authorized representatives details.
Next the customer can select a Payment method. PencilPay recommends direct debit from a bank account as the most cost-effective method.
Finally, the customer can review all the credit application information, read the terms and conditions, and accept. A copy of the terms and conditions and the agreement are sent by email for their reference.
Create a payment plan
You can create a payment plan for your invoices from your PencilPay account. Invoices are pulled to PencilPay from your Xero account.
Go to Invoices.
Find the invoice you want to create a payment plan for.
Click Offer payment plan to continue.
Use Add more invoices? to select additional invoices from the same customer to the payment plan. In this example, we will create a payment plan for one invoice only.
Click Next to continue.
Select the Upfront payment, Payment frequency, and Payment duration.
Click Next to continue.
Review the payment plan offer and click Next to send it to the customer.
The customer will then receive an email with the payment plan offer link. Clicking the link will take the customer to a page where they can review the information and securely make payments on the invoice. The customer will receive receipts of payments to the provided email address.
The payment information will be synced to both Xero and Cin7 Core.