10 Proven Ways to Get Paid On Time and Avoid Overdue Invoices

Are overdue invoices causing cash flow problems in your business? You’re not alone. Late payments remain one of the biggest challenges facing UK businesses in 2025. But with the right credit control strategy, you can dramatically reduce delays and get paid on time.

Here are 10 actionable steps to help your business avoid overdue invoices and improve payment performance.

1. Check Your Customer’s Credit Rating

Before extending credit or delivering goods/services, check your customer’s credit score. Never rely solely on their work that they can pay.

Use a credit report service to assess risk upfront. This will help you decide whether to trade, what credit limit to offer, and if you should request payment upfront.

TIP: Use real-time credit monitoring to get alerts if your customer’s financial health changes.

2. Collect Complete Customer Information

Always gather full business details from the outset:

  • Registered company name
  • Trading and invoice addresses
  • Company number
  • Phone and email contacts

If you haven’t already, credit a New Customer Account Form to standardise this process. You’ll need this information for issuing invoices, chasing debts, and enforcing contracts.

Example Customer Account Form Here

3. Send Invoices Promptly and Clearly

Invoice as soon as the job is done or the product is delivered. Delays in invoicing often result in delayed payments.

Make sure your invoices include:

  • Your business name and address
  • Invoice date and payment due date
  • Invoice number
  • Bank details (sort code and account number)
  • Clear breakdown of charges

Avoid payment delays by giving your customers no excuse to query basic information.

4. Send Reminders Before and After the Due Date

Use automated invoice reminders to notify customers before and after the due date. Under the “Late Payment of Commercial Debts (Interest) Act”, you are entitled to charge late payment fees and statutory interest on overdue invoices.

You can calculate what to charge using this calculator.

Let your customers know your policy in advance, this alone can improve payment speed.

5. Create a Credit Control Process

Having a structured credit control policy ensures consistency and professionalism.

Your process should outline:

  • When to issue reminders
  • When to apply charges
  • When to escalate to debt recovery

A clear process empowers your team and sets expectations with customers.

6. Discuss Payment Terms Upfront

Before a sale is agreed, talk about money. Clearly explain your payment terms, due dates, and accepted payment methods.

Don’t assume your customers know your expectations, communicate them. This reduces confusion and builds a professional foundation from the start.

7. Offer Multiple Payment Options

Make it easy for customers to pay you accepting a variety of methods:

  • Bank transfer (BACS)
  • Direct debit
  • Credit/debit card
  • PayPal
  • Stripe or other digital gateways

The easier it is to pay you, the fewer excuses your customers have.

8. Phase Out Cheques

Still accepting cheques? It may be time to stop.

Cheques are slow, outdated, and prone to the classic excuse “the cheque is in the post”. Move to faster, more secure digital payment options to eliminate delays and reduce processing time.

9. Take Payment by Phone When Needed

If you’re struggling to collect a payment, ask the customer to pay there and then, especially if you’re already on the phone.

With systems like Worldpay, PayPal, or SumUp, you can take secure card payments quickly and professionally.

10. Handle Disputes Professionally

If a customer refuses to pay due to dissatisfaction, remain calm and professional. Record the details of the complaint, respond promptly, and follow up in writing.

Maintain a paper trail of all communication in case legal action becomes necessary. Judges favour businesses with professional, written documentation.

 

Getting Paid On Time Starts With Prevention

Staying on top of your invoicing and credit control is essential for business survival. These 10 steps will help you:

  • Reduce overdue invoices
  • Improve your cash flow
  • Maintain strong customer relationships

And if you’re struggling, our cost-effective debt recovery services can help recovery unpaid invoices while protecting your brand’s reputation.

Find out more here

 

 

Updated 5th August 2025