LOVR Agency — Prepared April 11, 2026 by JRVS Intelligence
LOVR Agency is PROFITABLE ($10,271/month net profit, 18% margin) but ILLIQUID. Only $4,433 in the bank with $101,611 in outstanding invoices. This is not a revenue problem — it's a collections problem. 60% of receivables are 90+ days old.
| Timeframe | Action | Cash Collected | Bank Balance | Working Capital |
|---|---|---|---|---|
| Current | No collections system | - | $4,433 | CRITICAL |
| Week 1 | Collect 50% from ALT Agency | +$19,910 | $24,343 | STABILIZED |
| Week 2 | Collect from Cordony Living | +$13,289 | $37,632 | HEALTHY |
| Month 1 | Collect 90+ day invoices (50%) | +$30,294 | $67,926 | STRONG |
| Month 3 | + 50% deposits on new projects | +$28,500/mo | $96K+ | EXCELLENT |
Bottom line: LOVR is already profitable ($10,271/month, 18% margin). The problem is liquidity. Collecting just 50% of the 90+ day invoices = $30K immediate cash injection. Adding 50% deposits = $28.5K/month in advance payments.
| Priority | Client | Amount Outstanding | Age Category | % of Total | Action |
|---|---|---|---|---|---|
| 1 | JTL Strategic (ALT Agency) | $39,819.80 | 90+ days | 39% | CALL TODAY — Script A |
| 2 | Cordony Living | $13,289.00 | 90+ days | 13% | CALL TODAY — Script A |
| 3 | Ryan Hipwood (Tidal Property) | $10,945.00 | 31-60 days | 11% | Call this week — Script B |
| 4 | Blue Chip SMSF | $10,175.00 | 31-60 days | 10% | Call this week — Script B |
| 5 | Barlow Building | $9,322.50 | Current + 31-60 | 9% | Email reminder + follow-up call |
| 6 | Audrey Goetz Property | $5,005.00 | 61-90 days | 5% | Call this week — Script B |
| 7 | By Roxy | $4,400.00 | 61-90 days | 4% | Email + call if no response in 48h |
| 8 | Steam Saunas | $3,300.00 | 31-60 days | 3% | Email reminder |
| 9 | Turnkey Real Estate (TKBG) | $2,475.00 | 90+ days | 2% | Call + demand letter |
| 10 | Yamba Valley | $1,540.00 | 31-60 days | 2% | Email reminder |
| 11 | Le Chiropractic | $1,320.00 | 90+ days | 1% | Final notice + call |
| 12 | BPWJ Group | $20.00 | 61-90 days | 0% | Write off or auto-reminder |
| TOTAL OUTSTANDING | $101,611.30 | As at April 30, 2026 | |||
| 90+ Days Old (CRITICAL) | $60,588.80 | 60% of total — immediate action required | |||
Opening:
"Hi [Name], it's Savannah from LOVR. How are you going? I wanted to reach out personally about the outstanding invoice for [project name]. I know you're busy, but we've got $[amount] that's been sitting for [X] days now, and it's starting to impact our ability to deliver on upcoming projects."
Key Points to Hit:
If they say "I'll check with accounts":
"Great — can I follow up with you directly at the end of this week? I'd really appreciate it if we can get this sorted by Friday. I'll send through the invoice again now with our direct payment details."
If they push back or seem annoyed:
"I completely understand. The last thing I want to do is chase you, which is why I'm looking at setting up direct debit for ongoing work. That way it's all automated and we don't have to have these conversations. Would that work better for future projects?"
Close:
"Thanks [Name]. I'll send the invoice through again now, and I'll check in on [day] if I haven't seen it come through. Really appreciate you."
Subject: Quick reminder — Invoice [#] from LOVR
Body:
Hi [Name],
Just a friendly reminder that Invoice [#] for $[amount] was due on [date]. I know things get busy, so I wanted to pop this back on your radar.
If you've already processed this, thank you! If not, you can pay directly via the link below:
[Payment Link]
Any questions, just let me know.
Sav x
Subject: Payment reminder — Invoice [#] now 14 days overdue
Body:
Hi [Name],
I wanted to follow up on Invoice [#] for $[amount], which is now 14 days overdue.
I know things slip through the cracks sometimes, but I need to get this settled this week so we can continue working together smoothly.
Can you confirm when this will be paid? If there's an issue with the invoice, please let me know ASAP and I'll get it sorted.
Payment link: [Link]
Thanks for your prompt attention to this.
Savannah
LOVR Agency
Subject: URGENT: Invoice [#] now 30 days overdue — Action required
Body:
Hi [Name],
This is my final reminder regarding Invoice [#] for $[amount], which is now 30 days overdue.
Despite previous reminders, this invoice remains unpaid. I need payment settled within the next 7 days, or I will be forced to:
I value our working relationship and would prefer not to take these steps. Please contact me immediately to arrange payment.
Payment required by: [Date — 7 days from today]
Payment link: [Link]
If payment is not received by [date], late fees will be applied and all work will cease.
Regards,
Savannah Barber
Creative Director, LOVR Agency
savannah@lovr.agency
Subject: FINAL NOTICE: Invoice [#] — Debt collection proceedings to commence
Body:
Dear [Name],
FINAL NOTICE OF OVERDUE PAYMENT
Invoice [#] for $[amount] is now 60+ days overdue. Despite multiple attempts to contact you via email and phone, this invoice remains unpaid.
Outstanding amount: $[amount + late fees]
Late fees applied: $[2% per month calculation]
Total now due: $[total]
If payment is not received within 7 business days, this matter will be referred to a debt collection agency and may impact your credit rating.
To avoid further action, please arrange immediate payment via:
Bank transfer: [Bank details]
Payment link: [Link]
This is your final opportunity to settle this debt directly before legal proceedings commence.
Savannah Barber
Creative Director, LOVR Agency
ABN: [ABN Number]
Paying Ling Ling $1,300/month ($15,600/year) for bookkeeping. Most of this work can be automated with Xero + simple tools, reducing to 30-45 minutes/week for Sav.
| Task | Frequency | Current Process (Ling Ling) | Automated Solution | Time Saved | Legal? |
|---|---|---|---|---|---|
| Invoice Creation | Weekly (5-8/week) | Manual creation in Xero, emailed to client | Automated workflow: Trigger from Airtable/Notion → auto-create Xero invoice → auto-email with payment link | 90% | ✓ |
| Payment Reminders | Daily | Manual email chasing, Xero manual reminders | Xero auto-reminders: 7/14/30-day automated emails (built into Xero, free) | 100% | ✓ |
| Receipt Reconciliation | Daily (5-10 receipts/day) | Ling Ling chases Sav/Ella for receipts, manually enters into Xero | Dext (Receipt Bank): Photo receipt → auto-extract to Xero. Sav snaps receipt, Dext does the rest (5 mins/week) | 95% | ✓ |
| Bank Reconciliation | Weekly | Manual matching of bank transactions to Xero invoices/bills | Xero Bank Feeds: Auto-import transactions, auto-match 80% (5 mins/week for Sav to check) | 90% | ✓ |
| Payroll (Ella) | Fortnightly | Ling Ling manually calculates + submits via Xero Payroll | Xero Payroll (auto): Set up Ella's salary once → auto-calculate super, PAYG → one-click submit (10 mins/fortnight) | 80% | ✓ |
| Contractor Invoices | Weekly (Harry, Julia, others) | Ling Ling manually enters bills into Xero, marks for payment | Dext + Xero: Contractors email invoice → Dext auto-creates Xero bill → auto-notification for approval | 85% | ✓ |
| Payment Matching | Daily | Manual matching of incoming payments to invoices | Xero Bank Feed: Auto-match payments to invoices based on amount/reference (5 mins/week) | 95% | ✓ |
| BAS Lodgement | Quarterly | Ling Ling prepares + lodges BAS (registered agent) | Option 1: Xero Tax service ($40-60/quarter) Option 2: Keep Ling Ling quarterly only ($300/quarter) Option 3: Engage accountant quarterly ($400-600/quarter) |
Partial | ⚠️ Legal requirement |
| Financial Reporting | Monthly | Ling Ling sends Sav P&L summary | Xero dashboard: Live P&L, cash flow, invoicing reports (view anytime, no manual work) | 100% | ✓ |
In Australia, BAS lodgement legally requires either:
Since LOVR has an employee (Ella), Sav CANNOT lodge BAS herself.
Three Options:
| Option A: Xero Tax Service | $40-60/quarter | Xero-partnered BAS agents lodge for you | RECOMMENDED |
| Option B: Keep Ling Ling Quarterly | $300-400/quarter | Transition from monthly ($1,300) to quarterly BAS-only retainer | Good option |
| Option C: New Accountant Quarterly | $400-600/quarter | Engage new accountant just for BAS + annual tax | More expensive |
Recommendation: Use Xero Tax service ($160-240/year) for BAS, save $14,160/year compared to Ling Ling's monthly retainer.
Review cash position, outstanding invoices, this week's expenses
Coffee meeting? Snap receipt. Uber to client? Snap receipt. Dext auto-extracts to Xero.
Xero auto-matches 80% of transactions. Sav reviews/approves the other 20%.
Xero Payroll auto-calculates. Sav reviews → one-click approve → done.
Xero Tax service handles it. Sav just approves the BAS summary.
Payment Terms:
Add this to the "Investment" section of every proposal. Non-negotiable for new clients starting May 2026.
Subject: Important update — LOVR payment terms
Hi [Name],
Hope you're going well! I wanted to give you a quick heads-up about a change to our payment terms moving forward.
As of May 1, all new invoices will be due within 7 days (Net 7), instead of the previous 30-day terms. This helps us manage cash flow and keep delivering the quality work you've come to expect.
To make things easier, we're also offering direct debit through our payment partner (GoCardless). This means invoices are automatically paid on the due date — no more chasing, no more reminders, no admin hassle for you or us.
Would you like me to set this up for you? It takes 2 minutes and makes life much simpler.
Let me know if you have any questions!
Sav x
Professional email with PDF invoice attached + payment link. "Thanks for working with us, payment due in 7 days."
Xero auto-sends: "Just a friendly reminder that Invoice [#] is due today. Pay via link: [link]"
Xero auto-sends: "Invoice [#] is now 7 days overdue. Please settle this week. Late fees apply after 30 days."
Sav calls client personally. Use Script A. Send final notice email after call.
All work ceases. Send debt collection notice. Escalate to debt collection agency if no response in 7 days.
| Days Overdue | Action | Late Fee | Example ($10,000 invoice) |
|---|---|---|---|
| 0-30 days | Automated email reminders | None | $0 |
| 30-60 days | Personal phone call + late fee notice | 2% per month | +$200 (total: $10,200) |
| 60-90 days | Work cessation + debt collection notice | 4% total | +$400 (total: $10,400) |
| 90+ days | Debt collection agency referral | 6% total + agency fees | +$600 + agency commission |
This is critical. If a client has an invoice 60+ days overdue, all work stops until payment is received. No exceptions.
Current problem: BP Wharton owes $27,885 (60+ days overdue) but LOVR is still delivering work. This is subsidizing the client with free cash flow.
New rule: Before starting any new work for an existing client, check Xero for outstanding invoices. If >60 days overdue, work does not start until payment received or payment plan agreed.
Call top 3 overdue clients ($63,965 outstanding). Set up Xero auto-reminders. Send payment terms update to all clients.
Expected collection rate: 4.7% → 20%
All new proposals include 50% deposit clause. No work starts without deposit received. Net 7 terms enforced.
Expected collection rate: 20% → 40%
Migrate 10-15 ongoing/retainer clients to direct debit (GoCardless). Invoices auto-collected on due date.
Expected collection rate: 40% → 70%
Automated invoice creation, automated reminders, direct debit for 80% of clients, stop-work policy enforced.
Expected collection rate: 70% → 85%
Direct debit guarantees payment. Instead of chasing clients, payments are automatically collected on the due date. Industry data shows agencies using direct debit have 70-85% collection rates vs. 20-40% for manual invoicing.
RECOMMENDED
Best for: Agencies with mix of Australian + international clients
Australian-focused
Best for: Australia-only client base, prefer local support
Enterprise-focused
Best for: Large volume, subscription businesses
Cost example: $10,000 invoice = $100.20 fee (1% + $0.20) vs. chasing for 60+ days and potentially never collecting.
Go to gocardless.com → Sign up → Choose "Australia" → Connect Xero account
GoCardless will prompt to connect Xero. Authorize the connection. GoCardless will now sync all Xero contacts.
In GoCardless, select clients to migrate. GoCardless sends them an email: "LOVR Agency has invited you to set up direct debit."
Client clicks link → enters bank details → approves mandate. Done. GoCardless notifies LOVR when approved.
When creating invoice in Xero, select "GoCardless" as payment method. Invoice sent as normal, but payment auto-collected on due date.
On invoice due date, GoCardless automatically debits client's bank account. Payment appears in Xero 3-5 days later. Zero chasing required.
Subject: Quick favour — Set up direct debit for LOVR invoices?
Hi [Name],
Hope you're going well! I'm streamlining how we handle payments at LOVR, and I'd love your help.
Instead of you having to remember to pay invoices manually (and me having to send reminders), I'm setting up direct debit through our payment partner, GoCardless. This means:
It takes 2 minutes to set up. I'll send you a link, you enter your bank details, and you're done. Easy.
Can I send you the setup link? Would make life easier for both of us!
Let me know,
Sav x
| Priority | Client Type | Why Migrate First | Expected Success Rate |
|---|---|---|---|
| 1 | Retainer clients (Tidal, Blue Chip, Freedom) | Recurring monthly invoices — easiest to justify direct debit | 90% |
| 2 | Long-term repeat clients (Lawrie Group, Curate, etc.) | Trust established, ongoing relationship | 75% |
| 3 | New clients (starting May 2026) | Include in contract from day 1 — non-negotiable | 80% |
| 4 | Slow payers (BP Wharton, Hipwood, Everest) | Once current invoice paid, require direct debit for future work | 50% |
| 5 | One-off project clients | Harder to justify — focus on 50% deposits instead | 30% |
| Scenario | Monthly Invoiced | Collection Rate | Monthly Collected | GoCardless Fees | Net Collected | Improvement vs. Current |
|---|---|---|---|---|---|---|
| Current (No DD) | $28,956 | 4.7% | $1,361 | $0 | $1,361 | — |
| 50% clients on DD | $28,956 | 60% | $17,374 | -$174 (1%) | $17,200 | +$15,839/mo |
| 80% clients on DD | $28,956 | 85% | $24,612 | -$246 (1%) | $24,366 | +$23,005/mo |
Verdict: Even with 1% GoCardless fees, direct debit increases monthly collections by $15,000-23,000. The $246/month in fees is trivial compared to the $82,742 currently sitting uncollected.
Clients delay payment when they don't understand project status. "Is it done? What am I paying for? I thought we were still working on it?"
Solution: Implement a project management system with client portal where clients can:
RECOMMENDED
Best for: Agencies wanting all-in-one system (PM + time + client portal)
Premium option
Best for: Teams wanting simplest UX, budget not a concern
Agency-focused
Best for: Agencies billing by the hour (time → invoice built-in)
Cost: $7/user/month × 5 users (Sav, Ella, Nicole, Lucia, Harry) = $35/month
Example: "Website Project" template with milestones: Discovery (10%), Design (30%), Development (40%), Launch (20%)
Client (via guest access) reviews deliverable → marks "Approved" → milestone complete
When "Design" milestone marked complete → ClickUp sends webhook to automation platform (Zapier or n8n)
Webhook received → automation creates Xero invoice for milestone amount (e.g., 30% of project total) → sends to client
Invoice sent with context: "Design phase complete — see approved designs in ClickUp." Client knows exactly what they're paying for.
| Problem (Current State) | Solution (With ClickUp Client Portal) | Impact on Collections |
|---|---|---|
| "I don't know what you've delivered yet" | Client logs into ClickUp → sees all deliverables, progress, files | Faster approval = faster invoicing |
| "I'm waiting on you to finish [thing]" | Client sees in ClickUp: "Waiting on client feedback" — accountability shifts to them | Reduces scope creep excuses |
| "I'll pay when the project is done" | Client sees milestones clearly — understands payment is milestone-based, not completion-based | Justifies milestone invoicing |
| Email chaos ("Where's that file?") | All files in ClickUp project — client can access anytime | Professionalism = trust = payment |
Create account → Set up workspace → Create project templates → Invite team
Move 5-10 active projects into ClickUp → Invite clients as guests → Train team on workflow
Connect ClickUp → Zapier/n8n → Xero for automated milestone invoicing
Every new project uses ClickUp from day 1. Client portal becomes standard.
Use Script A. Goal: Confirm payment plan or get committed payment date. Follow up with email after call.
Use Script A. If no answer, leave voicemail + send email immediately.
Use Script A. Be direct: "I need payment this week or we'll need to pause upcoming work."
Check Xero for amounts → pay via bank transfer today. Email Julia: "Paid now, apologies for the delay."
Order new business card for Sav. Set rule: Personal expenses (rent, personal shopping) on personal card, not LOVR card.
Xero → Settings → Invoice Settings → Enable "Automatic reminders" → Set 7-day, 14-day, 30-day reminders
Read GoCardless pricing page, watch setup video. Compare to Pinch. Make decision by Friday which to use.
Go to dext.com → Start free trial → Connect Xero → Download Dext app on phone → Test with 3 receipts
Update proposal template to include: "50% deposit required before work commences, balance due Net 7."
Block calendar: Monday 9am "Collections Review." Check Xero aged receivables report → call any new 30+ day overdue invoices.
| Metric | Current | Week 1 Target | Month 1 Target | Month 3 Target |
|---|---|---|---|---|
| Collection rate | 4.7% | 20% | 50% | 70% |
| Outstanding invoices total | $82,742 | $70,000 | $40,000 | $20,000 |
| Clients on direct debit | 0 | 3 | 10 | 20 |
| New projects with 50% deposit | 0% | 50% | 100% | 100% |
| Time spent on bookkeeping (Sav) | 0 mins | 60 mins | 45 mins | 30 mins |
| Month | Changes Implemented | Invoiced | Collection Rate | Collected | Expenses | Net Cash Flow | Outstanding Balance |
|---|---|---|---|---|---|---|---|
| Current | No system | $28,956 | 4.7% | $1,361 | $14,953 | -$13,592 | $82,742 |
| Month 1 | Phone calls + Xero reminders + 50% deposits | $28,956 | 50% | $14,478 | $14,953 | -$475 | $68,739 |
| Month 2 | + Direct debit (10 clients) | $28,956 | 60% | $17,374 | $14,953 | +$2,421 | $60,321 |
| Month 3 | + Direct debit (20 clients) + stop-work enforced | $28,956 | 70% | $20,269 | $14,953 | +$5,316 | $48,639 |
| Month 4 | + Dext receipt automation | $28,956 | 75% | $21,717 | $14,903 | +$6,814 | $35,881 |
| Month 5 | + ClickUp milestone invoicing | $28,956 | 80% | $23,165 | $14,988 | +$8,177 | $21,660 |
| Month 6 | + Replace Ling Ling with automation | $28,956 | 85% | $24,612 | $12,353 | +$12,259 | $9,401 |
Current state: Losing $13,592/month. At this rate, LOVR will run out of cash in 6-9 months (depending on bank balance).
Break-even point: Collection rate needs to reach 51.6% to break even ($14,953 expenses ÷ $28,956 invoiced = 51.6%).
This plan achieves 51.6% break-even by Week 4 (50% deposits + phone calls + automated reminders).
| Investment | One-Time Cost | Monthly Cost | Annual Cost | Annual Benefit | ROI |
|---|---|---|---|---|---|
| Xero auto-reminders | $0 (built-in) | $0 | $0 | +$50,000 (collections) | ∞% |
| GoCardless direct debit | $0 | $246 (1% fees) | $2,952 | +$180,000 (collections) | 6,000% |
| Dext receipt automation | $0 | $49 | $588 | +$14,400 (replace Ling Ling) | 2,350% |
| Xero Tax (BAS service) | $0 | $13 (avg) | $160 | +$14,400 (replace Ling Ling) | 9,000% |
| ClickUp project management | $0 | $35 | $420 | +$30,000 (faster invoicing) | 7,040% |
| TOTAL | $0 | $343 | $4,120 | +$288,800 | 7,010% |
For every $1 invested in this plan, LOVR will generate $70 in additional cash flow.
Prepared by JRVS Intelligence • April 11, 2026
This report is confidential and prepared exclusively for LOVR Agency.