Business Daily Media

The Times Real Estate

.

Late Payments? The Foolproof System for Getting Paid on Time, Every Time


Photo: MART  PRODUCTION / Pexels

Whether you run a graphic design studio in Miami or a 3PL logistics company in Melbourne,

getting paid should be the easy part of doing business. You provide a service or a product, and in return, money appears in your account. Simple. 

Yet, anyone who’s been in business for more than five minutes knows that payments have a curious tendency to go missing, turn up late, or require a round of detective work to track down.

The good news is that you don’t need to spend your days sending “just following up” emails or wondering if your invoice was abducted by aliens. With the right system, payments arrive when they should—without drama, negotiation, or excuses.

Here’s how to make sure you’re working with such a system: 

Step 1: Set Expectations Upfront

Before a single service is rendered or product shipped, both parties should be crystal clear on payment terms. This means stating the amount due, the due date, and the preferred payment method in a way that leaves no room for interpretation. 

“Net 30” might mean 30 days to you, but to some clients, it just screams “my invoices aren’t urgent, so pay whenever it suits you.” A specific due date—like “payment required by March 15, 2025”—leaves no room for creative reinterpretation.

It also helps to mention what happens if payment is late. Late fees, interest charges, or work stoppages aren’t strong incentives for people to pay attention.

Step 2: Automate What Can Be Automated

The more you rely on people to remember things, the more you invite delays. Automated invoices, scheduled reminders, and recurring payment setups remove the human tendency to procrastinate from the equation.

Use accounting software that sends invoices automatically and follows up without needing your intervention. Many of these systems will also show when a client has opened an invoice, eliminating the old “I never got it” excuse. If payments are regular, setting up direct debit agreements or requiring upfront payment eliminates the chase altogether.

Step 3: Make Paying You as Easy as Possible

If paying you requires effort, clients will put it off. A bank transfer that involves logging into an account, finding details, and manually entering numbers might as well be a 5K obstacle course compared to a simple “Pay Now” button.

Accept multiple payment methods, including credit cards, PayPal, and direct debit, and ensure your invoice includes clear, clickable payment links. The fewer steps, the faster the payment.

Step 4: Invoice Immediately, Not Eventually

An invoice sent immediately after a project wraps is far more effective than one sent weeks later. A delay in invoicing often leads to extra delays in payment. If you wait a month to bill, don’t be surprised when it takes your client another month to pay.

For project-based work, consider milestone payments. Instead of invoicing at the end, set clear checkpoints where a portion of the payment is due. This protects your cash flow and avoids long waits for large sums.

Step 5: Follow Up (Without Feeling Like a Bill Collector)

Some clients pay late simply because they forget. A polite, automated reminder a few days before the due date keeps things on track. If the payment is late, follow up quickly but professionally. A simple “just checking in” email may be ignored, while a direct “According to our records, payment was due on X date. Please confirm the status” gets better results.

If days turn into weeks, a phone call is often more effective than an email. It’s much harder to ignore a person’s voice than another message in an inbox.

Step 6: Enforce Late Payment Policies (Yes, Really)

Stating late fees in your terms is one thing. Actually applying them is another. If a client knows they won’t be charged extra for being late, they have no reason to prioritize your invoice over others.

When a payment is overdue, send a reminder with the late fee added. If your contract states interest accrues, apply it. In most cases, people pay quickly once they see non-payment comes at a cost.

Step 7: Know When to Stop Work

For ongoing clients, non-payment is a warning sign. If invoices start piling up unpaid, pause work until payments are brought up to date. Continuing to provide services without payment only reinforces the idea that it’s optional.

If things escalate, don’t hesitate to use a collections agency or legal action. It’s not personal—it’s business.

Step 8: Work with Clients Who Respect Your Terms

Some clients are perpetual late payers. They have the funds but prefer to hold onto them for as long as possible. Others simply don’t prioritize paying vendors on time. Over time, working with people who respect your terms—and parting ways with those who don’t—makes your payment system run much smoother.

When payments flow in without issue, everything about running a business becomes easier. The trick isn’t working harder to chase payments but designing a system where they show up on time, every time.

ATO scrutiny not slowing surge in small business restructures

Small Business Restructuring (SBR) appointments have tripled in the first half of the 2025 financial year¹, revealing both growing awareness of th...

Temu expands partnership with Adyen as it launches across more markets

Adyen, the financial technology platform of choice for leading companies, today announced its expanded partnership with Temu, the global e-commerc...

Blend AI scales up in the USA following ecommerce success

Sydney, Australia – 1st April, 2025: Blend AI, a leading Australian adtech company, has announced the opening of its first US office in Austin, Te...

Why the Way We Think About Employee Wellbeing Is Holding Us Back

Workplace wellbeing has finally reached the mainstream. It’s no longer seen as a ‘nice to have’ or an afterthought—it’s a core business issue. But d...

Samsara Eco expands global leadership team

Industry heavyweights join Samsara Eco to accelerate its enzymatic recycling technology Chief Innovation Officer and Executive Product Director a...

National Print Awards Announce Ricoh Women in Industry Award

The National Print Awards (NPAs) are proud to introduce the Ricoh Women in Industry Award, a prestigious new accolade recognising and celebrating ...

Sell by LayBy