Ecommerce customers not paying? Here’s what to do

• Cash flow challenge:  Customers or wholesale buyers aren’t paying invoices on time, leaving you short on cash to restock, pay suppliers, or fund growth.

• Perfect for: Ecommerce brands and online retailers that invoice customers or sell to trade buyers on credit terms.

Novuna helps ecommerce businesses maintain cash flow when customers don’t pay on time, either through our award winning in-house service or by comparing the market to find the best fit for your business.

 We work with providers who understand online retail cycles, help you apply, and ensure you get the right deal to protect your business from payment delays.

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Why late payments are a growing problem for ecommerce

While many ecommerce transactions are paid instantly online, late payments can still be a major issue especially for B2B orders, wholesale accounts, or large ticket items where businesses offer credit terms. Late payments can delay restocking, marketing campaigns, and seasonal launches, putting revenue growth at risk.

Steps to reduce late payments in ecommerce

1. Vet wholesale or B2B customers before offering credit: Check trade buyers’ credit history before agreeing to payment terms. This helps you avoid customers with a record of paying late.
2. Set clear payment terms and automate reminders: Clearly state your payment policy at checkout or on invoices. Use automated email sequences to follow up before and after the due date.
3. Incentivise early payments: Offer small discounts for early settlement or apply late payment fees in line with UK legislation to encourage timely payment.
   
4. Use part-payments or deposits for large orders: Request an upfront percentage for wholesale orders to reduce your exposure if final payments are delayed.
5. Keep a backup funding solution: If large invoices go unpaid, having invoice finance, a merchant cash advance, or a short-term loan in place can bridge the gap until payment is received.

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Funding tools for late payment challenges in ecommerce

• Invoice factoring to release cash tied up in unpaid B2B invoices
• Merchant cash advances to use your future card sales as collateral
  
• Short-term business loans to cover urgent restocking or marketing costs
• Credit insurance to protect against bad debt from key customers

How Novuna Business Cash Flow can help

We support ecommerce businesses by securing funding that fits their sales cycle. Whether you’re dealing with a slow paying wholesale customer or need fast access to cash to fulfil orders, we help keep your growth plans on track.