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.
The benefits of invoice finance companies such as Novuna Business cash flow
Want to understand more Cash Flow Finance terms?
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We explore ways you can begin improving your cash flow situation and start getting your business on track to positive cash flow.
Competent staff, slick technology. Would recommend
Halo is one of the smartest bits of tech I have seen & every team is only as good a it's people and I would like to take this time to actually specifically point out Alex Hall & Claire Davies. Alex is an account manager that has continually improved during our time working together and is a real credit to Novuna. Claire has been exceptional from start to finish; meticulous in her work and very patient with us at every temp - an absolute star. It is a shame that the email address went to a generic platform and not each individual. I totally understand why this works better for companies but it did mean that the personal element was lost meaning that starts like Claire will be harder to identify from a customer point of view.
High recommedation for Novuna Business Cashflow.
My company was in need of invoice factoring to assist with the cashflow due to the nature of debtor days with our clients. After looking at a number of options, the right decision was made to work in partnership with Novuna Business Cashflow. Right from setup through sales to customer service, the communication and support has been outstanding. Providing me with all the information I needed regarding new clients coming onto our books. The system they use is so user friendly and the drawdown payments are very efficient in the fast moving world of temporary payroll. This has allowed my company to look at positive growth knowing we are safe financial hands. I would highly recommend Novuna Business Cashflow 10/10.
Set up went well and communication was good.
Syed and Vipul were extremely helpful top class service
Very helpful from the start
Great people made this process very straightforward.
Jemma from Novuna (formally Hitachi) was brilliant. Worked with us throughout the process and succeeded when some others had failed. Carried out the necessary checks with a smile and cheery demeanour, making what would have been a laborious process quite manageable.
Teething problems -Maybe ?
It's still early days so I may alter this review at a later date. However with retentions and concentration limits and other items, were finding were not getting 85% up front, were probably getting nearer 70% Also when a customer pays the remaining allegedly 15% due to us seems not to be credited to become available. For instance a customer paid Â£6918 and a customer paid Â£1300 hence we should see an extra Â£1330 available (15% of both these payments). However availability seemed to go down and not up by Â£1330 !!! Hard to work out where this 15% has actually gone ? I'll re-submit this review when things become clearer.
I found Hitachi true to their world in every aspect of the service they promised. I can't recommend enough.
Excellent Customer care and service.
Excellent customer service from start of initial conversations, right through to finally becoming a customer. The whole team involved are a credit to Hitachi, they were accommodating and informative the whole way along the process. I would highly recommend Hitachi to future clients and business associates. Thanks Alan.
I really enjoyed working with the Hitachi team, professional, helpful and really good people to deal with. They have made what could have been a very difficult experience a pleasure. Very happy to recommend them.
Hitachi made the process of moving factoring facilities painless, bearing in mind we previously had our facility with the same provider since 1997. I cant fault Hitachi's staff and processes and we are delighted with the move.
Staff excellent all together professional
Great service so far
From start to finish the process for transferring our invoice finance to Hitachi has been been brilliant, a smooth transition, great communication our link Person Jonathan Oakes has helped the process go through seamlessly, A great experience so far and a brilliant start to what we hope will be a long term partnership.