Timely payments are vital for maintaining healthy cash flow, yet many businesses overlook a powerful tool that can significantly reduce late invoices: strong customer relationships.

While it’s common to think of relationship-building as a route to repeat sales and referrals, it also plays a key role in encouraging prompt payment. When customers trust and respect you, they’re less likely to delay invoices. That trust, however, needs to extend beyond sales contacts, especially to accounts payable teams.

Let’s explore how to build these relationships strategically and ensure your credit control process supports your cash flow goals.

 

Laying the Foundations: Clear Communication & Process

Keep Interactions Polite and Professional
Respectful communication should be standard, even when tensions rise due to late payments. A calm, consistent tone reflects well on your brand and helps maintain a working relationship, even in challenging situations.

Implement Structured Credit Control Processes
Having documented procedures, such as timelines for contacting customers, how to handle disputes, and escalation paths, keeps things fair and depersonalised. Referring to policies or terms & conditions helps reduce friction and maintain objectivity. At the same time, allow flexibility where appropriate to show you’re listening and responsive.

Ensure Invoice Accuracy
Late payments often stem from easily avoidable errors. Make sure invoices include the correct billing contact, payment terms, and itemised service descriptions. Use client onboarding forms to collect this data and encourage regular updates. Clarity prevents confusion and gives accounts teams fewer reasons to delay.

 

Building Real Connections with Accounts Payable

Engage with the Right People
Often, the person you liaise with to deliver your service isn’t the one who processes your invoice. Establish contact with the accounts payable department early on. Where possible, build rapport – casual conversations or remembering details like holidays or hobbies can foster goodwill that translates into better cooperation.

Stay in Touch Throughout the Credit Period
Don’t wait until an invoice is overdue to make contact. A brief call or email to confirm receipt shortly after sending an invoice can help flag issues before they become problems. It also shows you’re proactive and professional, not just chasing when money is due.

 

Removing Barriers to Payment

Make Payment Easy
Give customers options. Whether it is via BACS, card payments, or direct debit, the more convenient you make it, the fewer excuses they have to delay. Where possible, avoid slower, outdated methods like cheques that can create unnecessary bottlenecks.

Be Responsive
If a customer has a question or raises a dispute, respond quickly. Even if the issue requires internal escalation, acknowledging their message shows that you’re attentive and care about resolution. This responsiveness builds trust and encourages prompt action on their end too.

 

Mastering the Tone of Credit Control

Adapt Your Tone to the Situation
Knowing when to apply pressure and when to take a softer approach is a key credit control skill. A firm tone might be needed for persistent late payers, while empathy might yield better results when delays are due to genuine challenges. Getting this balance right maintains professionalism while showing you’re human.

Show Gratitude
It’s simple, but powerful: thank your customers when they pay, especially when they pay on time. A quick note of appreciation strengthens the relationship and positively reinforces future prompt payments.

 

Need an Extra Hand? We’re Here to Help

If you’ve already implemented these strategies but are still experiencing issues with late payments, it may be time to bring in external expertise. At Franklin James Credit Management, we specialise in outsourced credit control, helping businesses improve cash flow, reduce debtor days, and protect valuable customer relationships, for as little as £37.50 per hour.

We become an extension of your team, applying consistent, professional processes that get results. Get in touch to see how we can support your credit control function and help you get paid on time, every time.

 

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Disclaimer: The information provided in this article represents the opinions and insights of Franklin James Credit Management Limited (FJCM). It is intended for informational purposes only and should not be considered as professional financial or legal advice. Business owners and individuals seeking financial guidance should consult with qualified professionals to address their specific financial needs and circumstances. FJCM disclaims any liability for decisions made based on the content of this article.