Client not paying an invoice? Step-by-step recovery guide

• Cash flow challenge: My clients aren’t paying invoices on time, leaving me short of cash to cover wages, suppliers, and everyday costs.

• Perfect for: SMEs chasing overdue invoices, business owners dealing with unreliable payers, and anyone struggling with late or missed payments.

Novuna helps small businesses unlock cash tied up in unpaid invoices, either through our award winning in-house service or by comparing providers across the market to find the best deal for your business.

 We support you with fast decisions, flexible options, and funding solutions that help keep your cash flow moving even when clients delay payment.

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Why some clients don’t pay invoices

Late or missed payments are one of the biggest causes of cash flow stress for UK SMEs. Common reasons include

• Clients having their own cash flow issues
• Disputes over the work or product delivered
• Poor internal payment processes at larger companies
• A lack of clear terms in the contract or invoice

Understanding why a client hasn’t paid can help you choose the right approach to resolving the issue.

Steps to take when a client doesn’t pay

The process is straightforward:

1. Double-check the invoice: Make sure the invoice is correct and sent to the right person. Missing details like a purchase order number or bank information can cause delays.

2. Send a polite reminder: A friendly reminder email or call often gets overlooked invoices paid quickly. Keep it professional and include the invoice number, amount due, and payment options.

3. Escalate with a formal request: If reminders don’t work, send a more formal letter or statement of account showing what’s overdue. Make it clear that further action will be taken if payment isn’t made.

4. Negotiate where possible: Sometimes clients genuinely can’t pay in full straight away. Offering a payment plan or partial settlement may help you recover most of what you’re owed while keeping the relationship intact.

5. Use funding to protect your cash flow: While waiting for payment, funding tools like invoice finance or short-term loans can help cover wages, suppliers, and overheads. This reduces the pressure while you continue chasing payment.

6. Consider debt recovery support: If payment is still not made, professional recovery services can step in to handle the process on your behalf, saving you time and stress.

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How Novuna Business Cash Flow can help

Late or missed payments don’t need to break your business. At Novuna, we help SMEs access funding solutions that free up cash tied in invoices and keep operations moving smoothly.
Whether it’s invoice finance, credit control support, or debt recovery options, we’ll guide you to the right product and provider for your needs.