Late invoice payments

What are the best ways to make sure you get paid on time?

Dealing with a payment can feel like a difficult juggling act - you might need to prompt your client to pay on time but you need to make sure the relationship doesn’t turn sour. Nevertheless, if your client hasn’t paid your invoice on time, this can have a big knock on effect for your business, from a decrease in cash flow to an inability to pay your staff on time.

Luckily, there are a number of things you can do to give your business the best chance possible of being paid on time.

What are the best ways to chase a late payment?

If the payment deadline for your invoice has been and gone, the first port of call is to send your client (or their accounts department) a polite email to remind them your invoice needs paying. Should you not get a response, a phone call to chase your invoice is the next step.

Most clients will pay your invoice after a gentle nudge, but if you’re still waiting, the next thing you can do is write a letter or email outlining that the late fees outlined in your terms of business will start being charged if the invoice isn’t paid by a certain date.

If none of the above have worked for you, it may be time to consider a legal route, which could include talking to a solicitor or debt collection agency.

How can you help prevent a late payment?

There are a number of things small businesses can do in order to prevent missed or late payments. One of the best things you can do before you start working with a client is to research their reputation and even run a credit check on them. This will give you a good idea of whether or not the client has a history of missing payments.

When you start working with a client, clearly state in your terms of business when payment is due and overdue, including any late fees. If you’re starting work on a big contract, request payment up, or at least a deposit, up front.

Once you’ve finished the work, invoice straight away, again clearly highlighting your payment terms and any late fees associated with missed payments.

Finally, scheduling polite reminders before your invoice is due will ensure it stays on your client’s radar, and befriending the person who deals with payment of your invoice can also be a good way of ensuring you get paid on time.

Have you thought about Invoice Finance as a cash flow solution for your business?

Invoice finance allows you to release cash quickly from your unpaid invoices.

As your lender, we can release up to 90% of your invoices within 24 hours. On payment of the invoice from your customers, we will then release the final amount minus any fees and charges. There are different types of invoice financing options available to businesses depending on the situation and the level of control they require in collecting unpaid invoices.

We are an invoice financing company who offer a solution whereby payments are collected on your behalf managed by our team of expert credit controllers so you can focus on running your business. Our Confidential Invoice Discounting solution is offered to businesses who want to maintain their own credit control processes, therefore this remains strictly confidential so your customers are unaware of our involvement.

Get in touch

Contact our friendly UK advisors on our freephone

0808 250 0859

8:45 - 17:15 - Monday to Thursday &
8:45 - 16:45 - Friday

The benefits of invoice finance companies such as Novuna Business cash flow

  • Boost your cash flow without having to wait up to 120 days for your customers to pay you

  • Release up to 90% of the invoice straight away, and the final 10% when the invoice is settled

  • Access funds within 24 hours from initial appointment with our revolutionary digital onboarding process

  • Benefit from our in-house credit control processes, allowing you to focus on running your business, instead of chasing clients for payment

  • Six month trial period followed by a rolling contract

Want to understand more Cash Flow Finance terms?

Our Cash Flow Resource Hub has been set up to help SME's with cash flow finance advice, tips and resources to help with their cash flow position.

We explore ways you can begin improving your cash flow situation and start getting your business on track to positive cash flow.

What our customers say

Let's talk

Please complete this form and one of our friendly advisors will call you back.

Approximately how many invoices do you raise each month?
How old is your business?
Back to top