The work’s done. The customer’s happy. The invoice is out.
And now… you wait.
Late payments are one of the most common cash flow headaches we see. You can be busy, profitable, and doing great work, and still feel the squeeze because the money hasn’t landed yet. And the longer an invoice sits, the easier it is for it to slip down a customer’s priority list.
The good news? Getting paid faster usually isn’t about chasing harder. It’s about making it easy for customers to pay you, and building a simple system that does the following-up for you. Here are six simple moves to help you get paid sooner.
1. Invoice the day the job’s done
It sounds obvious, but it’s the biggest quick win. Every day an invoice sits in drafts is a day added to your wait.
Make invoicing part of finishing the job, not a Friday-afternoon admin task. Most bookkeeping programs allow you to create and send invoices from your phone on the spot. For ongoing work, consider invoicing at set milestones rather than one big bill at the end.
2. Set clear payment terms, and say them early
Customers pay on the terms they agreed to, so make sure they’ve actually agreed to some.
- Put your payment terms on your quote or proposal, not just the invoice.
- Keep them clear and simple: a due date, not “net 30 EOM” jargon.
- Check your terms still suit your business. If they were set years ago, they may be longer than you need.
If a customer wants longer terms, that’s a conversation worth having upfront, not discovering when the invoice is overdue.
3. Make it ridiculously easy to pay
The fewer steps between “I should pay that” and “done”, the better.
- Add an online payment option to your invoices, such as a card or “pay now” link, if it suits your business and margins.
- Double-check that your bank details, invoice number, and contact name are correct and easy to find.
- Send invoices to the right person. A quick “who looks after accounts payable?” at the start of a job saves weeks later.
From 1 October 2026 you can no longer pass on card surcharges to customers – make sure you’ve reviewed your pricing and billing practices to stay compliant.
4. Let reminders do the chasing
Following up on money is nobody’s favourite job. So automate it.
Most accounting software lets you set up automatic invoice reminders, for example, a few days before the due date and again after it passes. You can customise the messages so they’re polite, consistent, and they go out whether or not you remember. Most customers aren’t avoiding you; they just need the nudge.
5. Ask for deposits or progress payments on bigger jobs
For larger projects, waiting until the very end to bill puts all the risk on you. A deposit upfront, or progress payments at agreed stages, keeps cash coming in while the work is happening.
For regular, recurring services, a direct debit or repeating invoice can take the waiting out of it altogether.
If you operate within a regulated industry (such as Construction) there may be restrictions on how much upfront deposits you can take – check with your State authority before changing your deposit practices.
6. Have a simple follow-up rhythm, and know your numbers
Decide in advance what happens when an invoice goes overdue. For example: automatic reminder, then a friendly phone call, then a firmer conversation. Having a plan takes the emotion out of it.
Then keep an eye on your aged receivables report (a list of who owes you what, and for how long). A quick look each month shows which customers are slipping before it becomes a real problem. If a payment dispute does arise, get advice before taking further steps.
Plan ahead for quieter periods
Most businesses have quieter stretches, whether it’s a seasonal dip or customers’ own shutdown periods. A little planning makes them far less stressful:
- Find out when your key customers run their payments, and time your invoices to land before it.
- Ask regular customers about any closure periods, so invoices don’t sit in an empty inbox.
- Follow up on anything overdue before a quiet period, not after.
- Map slower months into your cash flow forecast, so you know what’s coming.
Not sure how to build that forecast? Our guide, How to Build a Cash Flow Forecast for the Year Ahead, walks you through it.
Turning sour into sweet
Late payments can feel like part of running a business. They don’t have to be. A few simple systems can shorten the gap between doing the work and seeing the money, and give you a lot more breathing room.
If you’d like a hand setting up invoicing and reminders in Xero, or want to talk through your cash flow, we’d love to help. Book an obligation-free chat with our team.
Information provided here is intended as a general overview only and does not replace professional advice tailored to your personal circumstances. Get in touch before acting on it.
