Late payments are one of the most common challenges facing UK businesses. Whether you run a small practice or a growing company, overdue invoices put pressure on cash flow and take up time you simply do not have. The good news is that many late payment problems can be prevented or resolved with the right processes in place.
Here are ten practical credit control tips that can make a genuine difference to how quickly you get paid.
1. Set Clear Payment Terms Before You Start Work
This sounds obvious, but it is one of the most frequently skipped steps. Before any work begins, make sure your payment terms are agreed in writing. This means your invoice due date, any early payment incentives, late payment charges, and the process if an invoice is not paid on time.
Clear terms at the start remove ambiguity later. When a customer knows exactly what is expected and what happens if they do not pay, they are far more likely to prioritise your invoice.
2. Invoice Promptly and Accurately
Your payment clock does not start until the invoice is sent. Delays in invoicing almost always lead to delays in payment. Get your invoices out as soon as the work is complete or the goods are delivered.
Equally important is accuracy. Invoices with incorrect details, missing purchase order numbers, or the wrong contact name give customers a genuine reason to delay. Check every invoice before it goes out.
3. Make It Easy to Pay
The harder it is to pay you, the longer it takes. Include all payment details clearly on every invoice: bank details, reference numbers, and any online payment links. If you can accept multiple payment methods, offer them.
Consider using a payment portal or direct debit where possible. Removing friction from the payment process is one of the simplest ways to speed up collections.
4. Send a Friendly Reminder Before the Due Date
A short, polite reminder a few days before an invoice is due is not pushy. It is good practice. Many late payments happen simply because the invoice got buried in someone's inbox or their payment run did not pick it up.
A brief reminder gives the customer the nudge they need without any awkwardness, and it signals that you are on top of your accounts.
5. Follow Up Consistently and on a Schedule
Once an invoice becomes overdue, consistency is everything. Ad hoc chasing is easy to ignore. A structured follow-up schedule, with set contact points at defined intervals, is far more effective.
For example: a reminder on the due date, a follow-up call three days later, a formal letter at 14 days, and an escalation at 30 days. Whatever your process, stick to it. Debtors quickly learn which creditors will chase consistently and which will not.
6. Pick Up the Phone
Emails are easy to ignore. Phone calls are not. For overdue invoices, a well-timed, professional phone call is almost always more effective than another email reminder.
The goal of the call is not to apply pressure but to open a conversation. Ask if there is anything preventing payment, whether the invoice was received correctly, and confirm when they expect to pay. A direct conversation gives you far more information than an unanswered email.
7. Deal With Disputes Quickly
A disputed invoice will not be paid until the dispute is resolved. If a customer raises a query or a complaint about an invoice, deal with it as quickly as possible. The longer it sits unresolved, the harder it becomes to collect.
Log all disputes, agree a resolution process, and follow up to confirm the outcome. Where a dispute is partially valid, consider whether accepting a revised amount is preferable to the cost of further chasing.
8. Know When to Offer a Payment Plan
Sometimes a customer genuinely cannot pay the full amount in one go. In those cases, a structured payment plan is often better than pushing for immediate full payment and getting nothing.
Agree the plan in writing, confirm the instalment amounts and dates, and monitor it closely. A payment plan that is managed properly recovers money that might otherwise be written off entirely.
9. Run Credit Checks Before Extending Credit
Prevention is better than cure. Before you take on a new customer and extend credit terms, run a credit check. This gives you a clearer picture of their payment history and financial health, and helps you make an informed decision about what terms to offer.
It is also worth reviewing the credit terms you offer existing customers periodically, particularly if their payment behaviour has changed.
10. Know When to Ask for Help
There comes a point where chasing invoices in-house is costing more in time and resource than the debt is worth. If your aged debt is growing, your debtor days are climbing, and your team is stretched, it is worth considering whether outsourced credit control or a professional collect-out service would be more effective.
A specialist can often recover debts that have stalled internally, using techniques and experience that come from working across hundreds of ledgers. And with no collect, no fee options available, there is nothing to lose by exploring it.
Small Changes, Big Results
You do not need to implement all ten of these at once. Even making two or three consistent improvements to your credit control process can have a noticeable impact on how quickly you get paid. Start with the basics: clear terms, prompt invoicing, and a consistent follow-up schedule. Build from there.
If you would like a second opinion on your current process, we are happy to take a look. Our free consultation includes a review of your approach and practical recommendations, with no obligation to take things further.
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KS Credit Control
MCICM-qualified credit control specialists, Leeds