Cash flow is what keeps a small business alive, and slow payment is its most common enemy. Most late payments are not refusals: they are invoices that were unclear, late, sent to the wrong person or simply forgotten.
Before the work begins
The best time to get paid is agreed before you start:
- Agree the price and the scope in writing.
- Agree payment terms up front, and put them on the quote.
- Ask for a deposit on larger jobs, and bill milestones as you go.
- Find out who approves invoices, and how the client prefers to receive them.
When you send the invoice
Send it as soon as the work is done, not at the end of the month. Late invoices create late payments. Make sure it carries a clear invoice number, due date and bank details, and that it goes to the person who can pay it. Mention a purchase order number if the client uses them.
Shorten the terms
Terms of 30 days are common, but you can ask for 14, or 'due on receipt' for small jobs. Many clients simply pay by the date you state. If you must give 30 days, offer a small discount for earlier payment. Whether that is worth it depends on your margins.
Make it easy to pay
Offer more than one way to pay, include a payment link if you can, and put the details on the invoice itself instead of in a separate email. Every extra step costs days.
Remind politely and on time
A short reminder just before the due date often prevents the lateness. After the date, follow up on a schedule: a friendly nudge the day after, a firmer message at one week, and a formal letter later. Our Payment Reminder Templates give you the words for each stage, from gentle to final.
Know the cost of lateness
Use our Late Payment Calculator to work out what a late invoice is costing you and what interest or fee you may be entitled to claim. Even when you do not charge it, having the number helps you decide how firmly to follow up. Check the rules in your country: some places set statutory late-payment interest, and others rely on what you agreed.
Keep good clients, review slow ones
A client who always pays late is costing you money. Raise it, move them to shorter terms or deposits, or decide whether the work is worth it. Most clients, treated with courtesy and clear paperwork, pay on time.
Tools for this guide
More tips
- What to Put on an Invoice: A Checklist
- Invoice Numbers: How to Number Your Invoices Sensibly
- Quote, Estimate, Pro Forma, Invoice: What Is the Difference?
- Payment Terms Explained: Net 30, Due on Receipt and Everything Between
- Credit Notes: When to Use One and How to Write It
- How to Chase a Late Payment Without Damaging the Relationship
- Purchase Orders Explained for Small Businesses
- VAT, GST and Sales Tax on Invoices: The Basics
- Hourly, Day Rate or Fixed Price: How to Price Freelance Work
- Keeping Invoice and Receipt Records: What to Keep and for How Long
- Invoicing Clients in Other Countries and Currencies
- Tracking Billable Time So You Never Under-Bill Again
- Your First Invoice: A Calm Guide for New Freelancers
- All tips and guides
These guides are general information to help you get paid and stay organised. They are not legal or tax advice. Rules differ by country and change over time, so check with your tax authority or an adviser.