Getting paid on time

Why invoices go unpaid

In most cases the customer did not refuse to pay. The invoice went to the wrong person, waited for an approval, lacked a purchase order number or was simply buried. Treat late payment first as a process failure to fix, and only then as a credit-risk question.

Customers also pay those who ask. A supplier who never follows up trains the buyer to pay everyone else first. A polite, regular reminder signals that the due date is a real date.

A plumbing contractor in Spanish Town finishes a job for a property manager, sends an invoice on Friday and hears nothing. Two weeks later a short message with the invoice number, amount and bank details gets the payment within days, because the manager had simply forgotten. The cost of the reminder was a minute; the cost of silence would have been a month of cash flow.

Cash flow is also a question of timing on your side. If you pay suppliers earlier than customers pay you, the gap has to be financed from savings or an overdraft. Map the days between paying for inputs and receiving payment, and use that gap to set credit terms, deposits and reminder dates that the business can actually afford.

Set terms before you deliver

Write payment terms into the quotation, contract and invoice: due date, accepted payment methods, bank details and any deposit. For new customers consider a deposit or part-payment, particularly for custom work, where you carry the cost of materials before the customer sees the result.

State the contact person responsible for payment, not just the company. Ask large customers for their invoice submission rules, including the address, required reference numbers and any approval steps. Matching these details at the start avoids weeks of back-and-forth later.

Group customers by behaviour. Reliable payers need a light touch. Chronic late payers need shorter terms, a deposit or payment before delivery. Customers who dispute everything need written scopes and sign-offs, and you should consider whether the business is worth the effort.

A weekly review routine

Pick a fixed day each week to go through unpaid invoices. Sort them by due date, mark those due this week, those already late and those disputed. For each overdue item write down the last contact date and the next action, and assign it to a named person.

Compare the total overdue with the cash you need for payroll, rent and GCT in the next fortnight. When the gap is large, concentrate effort on the biggest balances first rather than chasing small amounts equally.

Offer easy ways to pay: bank transfer details on the invoice, a payment reference and, where you have the facility, card payment. Every extra step between receiving the invoice and paying it delays money, so remove those steps wherever possible.

The reminder sequence

A simple sequence works well: a friendly message a few days before the due date, a short note on the due date, a firmer message after a week and a phone call after two. Include the invoice number, the amount, the date and the payment details every time, so the reader can act without searching.

Keep the tone courteous and factual. Offer a way out: if there is a problem with the work or the paperwork, ask them to say so, and agree a date. Never threaten action you do not intend to take.

Record promises in writing. If a customer says they will pay on Friday, send a message confirming it. If Friday passes, you have a documented basis for a firm follow-up, and the customer knows their word is being noted.

When reminders do not work

If a customer stops responding, put your position in writing, referring to the contract and the invoice. Consider a payment plan for a customer who is cooperating but short of cash, because a smaller sum on schedule beats a larger sum in dispute. For significant amounts, take advice from an attorney-at-law on demand letters and available court routes, including the Small Claims Tribunal for smaller sums.

4invoices gives you the archive to see what is unpaid, and 4notify lets you write and send reminders by SMS or e-mail. They are not triggered automatically, and the modules do not track payment promises, so the follow-up discipline remains yours.

Keep your own house in order. Customers sometimes pay late because your invoice was wrong or incomplete. Check addresses, reference numbers, amounts and delivery proof before you send an invoice, and file proof of delivery or acceptance with the copy.

Policies that make collections easier

Write a credit policy of one page: who may receive credit, up to what limit, on what terms and who approves exceptions. Check new business customers by asking for trade references and a bank reference, and review limits when you see slow payment.

Consider early-payment discounts where margins allow, or late fees only where they are agreed in advance. Offering two percent for payment within a week, for instance, can change behaviour more than any reminder, though you should work out the cost against borrowing from a bank.

Finally, track the average number of days customers take to pay and the share of invoices more than thirty days overdue. These two figures, reviewed monthly, tell you whether your collection effort is working long before the cash balance does.

Review results every quarter. Which customers were late most often, which reminders worked, how many days of sales are outstanding and which invoices were written off? Share the figures with the team who sell and deliver, because they know the customers and can often fix the cause, whether it is unclear pricing, unmet expectations or an unresponsive contact at the customer.

State terms in writing before you deliver, invoice promptly with all required references, and follow a fixed reminder routine before and after the due date. For new customers consider deposits. Regular, polite contact is the most effective and least costly tool.

No. You write and send SMS or e-mail messages from 4notify yourself, choosing recipients and timing. This is useful for consistent wording and quick sending, but there is no automatic trigger tied to invoice due dates, so schedule a weekly review to decide whom to contact.

Once polite reminders and a direct conversation have failed and the amount is significant. An attorney-at-law can send a demand letter and explain court options. For smaller amounts, ask about the Small Claims Tribunal and its current limits.

Only if the contract or terms you agreed in advance provide for it, stated clearly on the invoice. Charging interest not previously agreed invites dispute. Ask an attorney-at-law to draft a late-payment clause that is reasonable and enforceable for your type of customer.

Information page

This page is informational. Confirm requirements with the competent authority; 4b2b tools cover general invoicing and records only.