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How to Get Paid Faster: 12 Practical Ways for UK Small Businesses

Tradesperson preparing an invoice inside a work van

To get paid faster, agree payment terms in writing before you start, invoice the day the work is done, send it to the person who actually approves payment, make paying easy, and chase on a fixed schedule instead of when you remember. Most late payment is not refusal. It is an invoice that was late, vague, sent to the wrong person or never followed up. Each of those is fixable, and this guide covers the fixes in the order you meet them.

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TL;DR

  • Agree payment terms and the billing point in writing before work starts, then invoice immediately after delivery.
  • Put the details a payer needs on every invoice: PO number, work completed, due date, bank details, and VAT where it applies.
  • Offer more than one way to pay, and contact the payer a week before the due date.
  • Chase on a schedule: due date, a few days late, 15 days late, 30 days late. Use your statutory rights to interest and compensation when it helps.
  • Track every invoice in one place so nothing slips quietly past its due date.

Table of Contents

Why late payment is worth fixing now

The scale is large. A Department for Business and Trade and Small Business Commissioner study estimates late payments cost the UK economy almost £11 billion a year. It says they affect over 1.5 million businesses (28%) each year, and that businesses are owed around £26 billion in late payments at any given time.

For a small business that is not an abstract figure. It is the VAT bill you fund from your own pocket, the supplier you pay before your client pays you, and the self-assessment deadline that arrives while a £6,000 invoice sits unpaid. The same study counts both overdue invoices and payment terms longer than 60 days as late payment, so a client who “pays on time” under 90-day terms can still strain your cash flow.

The good news is that most of what slows payment happens before the invoice is overdue. That is where we start.

Why late payment is worth fixing now

Before the work: set terms that make fast payment the default

Agree terms and put them in writing

Enterprise Nation advises agreeing payment terms before work starts, so the customer cannot assume a long payment period, and recording them in writing. A contract, booking form, order confirmation or even an email will do.

The same guidance says terms should line up with a clear billing point: delivery, completion, a milestone or sign-off. If you do not name the trigger, the client can argue the clock has not started.

A short checklist for the quote or order confirmation:

  • Payment period (for example 14 days from invoice date) and what starts the clock.
  • The billing point: on delivery, on completion, or at named milestones.
  • Who receives and who approves the invoice.
  • Whether a purchase order number is required.
  • That statutory late payment interest and compensation apply if payment is late.

Find out who pays and how

The Small Business Commissioner suggests you identify who should receive the invoice and confirm when you can realistically expect payment, because a term such as “30 days” can mean different things in practice. It also advises asking for any purchase order number early, rather than discovering at invoice stage that you need one.

A generic accounts inbox is fine for some clients. For larger ones, the person who approved the job and the person who processes the payment run are often different people. Ask for both names once, at the start. It takes two minutes and removes a common reason for delay.

Invoicing: speed and accuracy

Invoice the moment the work is done

Government guidance on invoicing says to raise an invoice immediately after supplying the goods or service. The Small Business Commissioner also recommends submitting invoices promptly after completion.

A monthly invoicing day feels tidy, but it hands every client an extra two to four weeks. If you finish a job on the 3rd and invoice on the 30th, a 30-day term really means 57 days from the work.

For trades and field work, raising the invoice from the van or the job site is the habit that matters. If you want to see how a specialist sector approaches this, there is a useful piece on getting paid faster on fibre projects, and a similar one on automating repair invoicing for garages. The principle carries across trades: invoice while the job is fresh.

Put everything the payer needs on the invoice

According to the Small Business Commissioner, a good invoice includes:

  • the invoice date and number
  • the purchase order number, if there is one
  • a clear description of the work completed
  • the total fee, with VAT details if applicable
  • the payment due date and the agreed terms
  • your bank account details

The guidance also stresses accuracy. Government invoicing guidance notes that raising credit notes and reissuing invoices takes time and changes the payment due date. Enterprise Nation makes the related point that late, incomplete or inaccurate invoices give a payer an easy reason to push your invoice into a later payment run.

In practice, a missing PO number is the classic culprit. The invoice is rejected, you learn about it three weeks later, and the clock restarts.

Make the due date impossible to miss

Write an actual date (“Due: 28 November”) rather than only “30 days”. Put it near the total, not in small print. Use a plain subject line such as “Invoice 1042, £1,850, due 28 November”, so the email is findable and the amount is clear before it is opened.

Make paying easy

Enterprise Nation lists the options that reduce friction for clients: bank transfer, payment links, card payments, direct debit for recurring services, standing orders and automated invoice reminders.

Which to offer depends on who you work for:

Client type What usually works best
One-off private or small business customers Bank transfer details plus a card payment link
Retainer or monthly clients Direct debit or a standing order
Larger companies Correct PO number and the right invoice address, then bank transfer
Project work Milestone invoices tied to sign-off

Add your bank details in the same place on every invoice, and a payment reference the client can copy. Fewer decisions for the payer means fewer reasons to leave the invoice for later.

Before the due date: the one-week check

The Small Business Commissioner suggests calling the person responsible about a week before payment is due to check they have what they need. It is not chasing. It is a short, friendly check: “Just confirming invoice 1042 reached you and nothing is missing for the 28th.”

This single step catches wrong addresses, missing PO numbers and invoices sitting in someone’s inbox awaiting approval, while there is still time to fix them.

When payment is late: a chasing schedule that works

Chasing fails when it is ad hoc. A fixed rhythm removes the awkwardness, because you are following a routine rather than making a personal complaint. Enterprise Nation’s suggested sequence is:

  1. Due date: if nothing has arrived, contact the customer.
  2. One to five days overdue: first reminder, asking for a specific payment date.
  3. 15 days overdue: a firmer reminder, noting that interest and compensation may apply.
  4. 30 days overdue: a final reminder before you escalate.

The source for this schedule is Enterprise Nation’s guide to getting paid on time. Asking for a date matters: “when can I expect payment?” gets a commitment, while “please pay” gets a shrug.

If an email gets no reply, the Small Business Commissioner’s guidance on help with unpaid invoices says to call or meet the client. If they claim never to have received the invoice, resend it with a clear subject line and double-check your payment details.

Know your statutory rights

Between businesses, you can charge statutory interest on a late commercial debt. GOV.UK says it is 8% plus the Bank of England base rate for business-to-business transactions, and that you cannot claim it where a contract sets a different rate of interest. The official guide to the late payment rules also sets out fixed compensation sums of £40, £70 or £100, depending on the size of the debt.

These rights apply to business customers, not consumers. Mentioning them in a calm, factual way in the 15-day reminder often prompts payment on its own. Our guide on how to charge interest on a late invoice walks through the calculation.

If they still do not pay

The Small Business Commissioner says a formal demand letter, stating the amount outstanding, the deadline and the possible consequences, may be necessary before legal action. Before going to court, you can contact the Commissioner, who may be able to help with recovery. A collections agency or legal action is the last resort, and the cost and the future of the client relationship are worth weighing first.

Track every invoice in one place

The slowest part of getting paid is often not the client. It is you not noticing an invoice has gone overdue. If invoices live in sent folders, spreadsheets and your memory, the 15-day reminder never gets sent.

Whatever you use, you need three things:

  • a list of every sent invoice, with amount and due date
  • a view of what is overdue today
  • a prompt to act, with the chase email ready to review

For more on seeing your money before it moves, read our piece on cash flow visibility. If your invoicing software caps reminders, our guides cover Xero’s reminder limit and QuickBooks’ reminder limit. For the wider picture, see invoice automation for small businesses, and how to keep a copy of every invoice you send.

Perspective: why we think chasing should not need a new system

Most small business owners we speak to do not have a payment problem so much as an admin problem. The invoice is sent, the work is forgotten, and three weeks later someone realises the money never arrived. Chasing then feels personal, so it gets put off again.

We built Execore around a simple belief: you should not have to replace your invoicing workflow to fix this. You Bcc a unique Execore address on the invoices you already send, and forward the bills you receive. That is the whole setup. No bank connection, no new invoicing system and nothing to install.

From there, Execore tracks what is outstanding, shows your net cash position for the next 30 days, and drafts the chase email for overdue invoices, including the statutory late payment interest and compensation calculations. Nothing is sent or paid until you approve it. You stay in control, but the remembering and the wording are done.

The aim is straightforward: fewer hours lost to admin each week, a clear view of who owes you what, and a better chance of being paid before your tax deadlines arrive.

 

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How Execore fits into this routine

If the schedule above sounds right but you know you will not keep to it by hand, that is the gap Execore is designed to close. Bcc your Execore address on outgoing invoices and it captures them automatically. When one goes overdue, it drafts a tailored follow-up in a review queue, ready for you to approve.

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There is a Free plan to start with, and a Business plan at £29 per month for higher document limits and more automation. Details are on the Execore pricing page, or you can see how it works on the Execore homepage. If you are heading into a tax deadline, our Digital Tax Check is a quick way to see whether your business is ready.

A worked example

Imagine a self-employed electrician who finishes a £1,850 job on a Friday.

  • Friday: the invoice goes out that afternoon, with the PO number, a description of the work, a due date 14 days away and bank details.
  • A week later: a quick message confirms the client has it and nothing is missing.
  • Due date: no payment. A polite note goes out the same day.
  • Three days late: a second reminder asks for a specific payment date.
  • 15 days late: a firmer email notes that statutory interest and compensation may apply.
  • 30 days late: a final reminder, followed by a formal demand letter if there is still no answer.

None of those steps is aggressive. Each is timely, specific and documented, which also matters if the debt ever needs escalating.

Common mistakes that slow payment

  • Invoicing in batches. Every day between finishing and invoicing is a day added to the client’s timeline.
  • Vague descriptions. “Services rendered” gives an approver nothing to check against.
  • No named recipient. The invoice sits in a shared inbox and nobody owns it.
  • Waiting for the client to complain. Silence is not satisfaction. Check in before the due date.
  • Chasing only when cash is tight. Inconsistent chasing teaches clients that your due dates are flexible.
  • Accepting terms by default. Longer terms than you need are often agreed because nobody raised the question.

FAQ

How do I get clients to pay on time?

Agree terms in writing before work starts, invoice immediately, send the invoice to the right person with every detail they need, and contact them about a week before the due date. Then follow a fixed chasing schedule if payment does not arrive. Consistency is what trains clients to treat your due dates seriously.

Can I charge interest on a late invoice?

If the customer is another business, yes. GOV.UK says statutory interest is 8% plus the Bank of England base rate, unless a contract sets a different rate. You can also claim fixed compensation under the late payment rules. It does not apply to consumers.

How soon after the due date should I chase?

Contact the customer on the due date if payment has not arrived. Send a first reminder one to five days overdue asking for a specific payment date, a firmer one at 15 days, and a final one at 30 days before escalating.

What should I do if a client says they never received the invoice?

Resend it straight away with a clear subject line, and double-check your payment details. Then ask for a payment date, as the Small Business Commissioner’s guidance suggests. Keeping a copy of every sent invoice makes this much quicker to prove.

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