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Getting Paid Faster

Getting paid quickly is crucial for cash flow. These strategies help you get paid faster and reduce late payments.

Why Payment Speed Matters​

Fast payments:

  • ✅ Better cash flow
  • ✅ Less admin time
  • ✅ Fewer bad debts
  • ✅ Less stress
  • ✅ More time for work
  • ✅ Business growth

Slow payments:

  • ❌ Cash flow problems
  • ❌ Time chasing payments
  • ❌ Unpaid invoices
  • ❌ Stress and frustration
  • ❌ Can't take on new work
  • ❌ Business struggles

Strategies to Get Paid Faster​

1. Invoice Immediately​

The faster you invoice, the faster you get paid.

Best practices:

  • ✅ Send invoice same day as job completion
  • ✅ Send during working hours (Monday-Friday)
  • ✅ Don't wait - send while job is fresh in their mind
  • ✅ Use email for instant delivery

Why it works:

  • Customer remembers the work
  • Job is still fresh
  • Shows professionalism
  • Reduces payment time by 30-50%

2. Set Clear Payment Terms​

Be explicit about when payment is due.

On every invoice:

  • "Payment due within 14 days"
  • "Payment due on receipt"
  • "Payment due by [specific date]"

Don't be vague:

  • ❌ "Payment due soon"
  • ❌ "Please pay when convenient"
  • ❌ No payment terms at all

3. Make Payment Easy​

Offer multiple payment methods:

  • ✅ Bank transfer (most common)
  • ✅ Card payment (card reader)
  • ✅ Cheque (traditional)
  • ✅ Cash (small amounts)
  • ✅ Online payment (PayPal, Stripe)

Clear payment details:

  • Bank name
  • Account name
  • Sort code (format: XX-XX-XX)
  • Account number
  • Payment reference (invoice number)

4. Use Payment Terms Strategically​

Small jobs (<£200):

  • Due on receipt
  • Net 7 (7 days)

Medium jobs (£200-£1000):

  • Net 14 (14 days)
  • Standard terms

Large jobs (£1000+):

  • 50% deposit upfront
  • 50% on completion
  • Protects you and customer

5. Request Deposits for Large Jobs​

Benefits:

  • ✅ Immediate cash flow
  • ✅ Customer commitment
  • ✅ Covers materials
  • ✅ Reduces risk

When to request:

  • Jobs over £500
  • Jobs requiring materials
  • Jobs with longer timelines
  • New customers

Common deposit amounts:

  • 25-50% upfront
  • Materials cost + 25%
  • Half upfront, half on completion

6. Offer Early Payment Discounts​

Incentivize fast payment:

  • 2% discount if paid within 7 days
  • 5% discount if paid within 3 days
  • Small discount, big impact on speed

When to use:

  • Large invoices
  • Regular customers
  • When cash flow is tight
  • To encourage prompt payment

Example:

  • Invoice: £1,000
  • 2% discount if paid in 7 days: £980
  • Customer saves £20, you get paid 7 days faster

7. Charge Late Payment Fees​

Protect yourself from late payers:

  • 8% interest per year (UK legal right)
  • £40 recovery costs (invoices £1,000+)
  • £70 recovery costs (invoices >£1,000)

Include on invoice:

  • "Late payment may incur charges in accordance with the Late Payment of Commercial Debts (Interest) Act 1998"
  • State fee amount clearly

When to charge:

  • Invoice clearly overdue
  • Customer hasn't responded
  • After final notice
  • Check legal requirements first

8. Follow Up Professionally​

Don't be afraid to ask for payment.

Follow-up schedule:

  • Day 1: Invoice sent
  • Day 7: Friendly reminder (if due in 14+ days)
  • Day 14: First follow-up (if overdue)
  • Day 21: Second follow-up
  • Day 30: Final notice

Be professional but firm:

  • Friendly: "Just checking you received invoice..."
  • Polite: "Invoice [number] is now overdue..."
  • Firm: "Final notice for invoice [number]..."

9. Build Relationships​

Good customer relationships = faster payments.

How to build relationships:

  • ✅ Do good work
  • ✅ Communicate clearly
  • ✅ Be professional
  • ✅ Be reliable
  • ✅ Follow up on work
  • ✅ Show you care

Benefits:

  • Customers want to pay you
  • Faster payment
  • Repeat business
  • Referrals

10. Use Professional Invoices​

Professional appearance = faster payment.

Include:

  • Clear layout
  • All required information
  • Your branding/logo
  • Professional formatting
  • Easy to read

Avoid:

  • ❌ Handwritten invoices
  • ❌ Unclear information
  • ❌ Missing details
  • ❌ Unprofessional appearance

Payment Communication​

When to Communicate​

Before job:

  • Discuss payment terms
  • Agree on timeline
  • Set expectations

After job:

  • Send invoice immediately
  • Confirm receipt
  • Thank them for business

If overdue:

  • Follow up promptly
  • Be professional
  • Document everything

Communication Templates​

Friendly reminder (Day 7):

Hi [Name],

Just checking you received invoice INV-2024-001 for [work description].
Payment is due on [due date]. If you have any questions, please let me know.

Thanks,
[Your Name]

Overdue notice (Day 14):

Hi [Name],

Invoice INV-2024-001 for [work description] is now overdue.
The amount of [amount] was due on [due date].

Please arrange payment as soon as possible. If there's an issue, please contact me to discuss.

Thanks,
[Your Name]

Final notice (Day 30):

Hi [Name],

Invoice INV-2024-001 for [work description] is now [X] days overdue.
The amount of [amount] was due on [due date].

This is a final notice. Please arrange payment within 7 days.
Late payment charges may apply in accordance with the Late Payment of Commercial Debts Act.

If you have any queries, please contact me immediately.

[Your Name]

Payment Methods to Accept​

Bank Transfer (BACS)​

Most common method:

  • ✅ Free for customer
  • ✅ Fast (usually same day)
  • ✅ Easy to track
  • ✅ Secure

Include on invoice:

  • Bank name
  • Account name
  • Sort code
  • Account number
  • Payment reference

Card Payment​

Using card reader:

  • Square, SumUp, iZettle
  • Accept card payments on-site
  • Get paid immediately
  • Small fee (1.5-2.75%)

Best for:

  • On-site payment
  • Immediate payment
  • Customer convenience

Cheque​

Traditional method:

  • Still used by some customers
  • Requires bank deposit
  • Takes 3-5 days to clear

Best for:

  • Older customers
  • Businesses
  • When other methods not available

Cash​

Immediate payment:

  • No fees
  • Instant
  • Requires handling securely

Best for:

  • Small amounts
  • On-site payment
  • When customer prefers

Reducing Payment Problems​

Screen Customers​

Before taking job:

  • Check if they seem reliable
  • Ask about payment terms
  • Get contact details
  • Trust your instincts

Red flags:

  • Unwilling to discuss payment
  • Asking for extended terms immediately
  • Poor communication
  • Seem rushed or desperate

Get Everything in Writing​

Document:

  • Quote/estimate
  • Work description
  • Payment terms
  • Timeline
  • Customer agreement

Benefits:

  • Clear expectations
  • Legal protection
  • Reduces disputes
  • Professional

Set Clear Expectations​

Before starting work:

  • Discuss payment terms
  • Agree on timeline
  • Explain what's included
  • Set due date

During work:

  • Keep customer informed
  • Update if issues arise
  • Maintain communication

Common Payment Issues​

Customer Says "I'll Pay Next Week"​

Response:

  • "That's fine, but invoice is due [date]. Can you confirm when you'll pay?"
  • Set specific date
  • Follow up if they don't pay

Customer Disputes Invoice​

Response:

  • Listen to their concerns
  • Review invoice together
  • Resolve legitimate issues
  • Stand firm on valid charges

Customer Asks for Extended Terms​

Response:

  • Consider if reasonable
  • May require deposit or payment plan
  • Protect yourself
  • Get agreement in writing

Key Takeaways​

✅ Invoice immediately - Faster invoicing = faster payment

✅ Set clear terms - No ambiguity about when payment is due

✅ Make payment easy - Multiple methods, clear details

✅ Follow up professionally - Don't be afraid to ask

✅ Build relationships - Good relationships = faster payment

✅ Use professional invoices - Professional appearance matters

✅ Request deposits - Protect yourself on large jobs

✅ Charge late fees - Protect yourself from late payers

Next Steps​

  1. Review your invoicing process - How fast do you invoice?
  2. Set clear payment terms - Make them explicit
  3. Improve your invoices - Make them professional
  4. Set up follow-up system - Don't let invoices sit
  5. Consider deposits - For large jobs
  6. Track your payments - See Invoice Tracking

Remember: Getting paid faster is about being professional, clear, and proactive. Implement these strategies and you'll see faster payments and better cash flow.