{"id":1582,"date":"2017-07-17T11:32:12","date_gmt":"2017-07-17T11:32:12","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/improve-your-cash-flow-10-great-tips-to-chase-late-payments\/"},"modified":"2026-01-30T10:34:18","modified_gmt":"2026-01-30T10:34:18","slug":"improve-your-cash-flow-10-great-tips-to-chase-late-payments","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/improve-your-cash-flow-10-great-tips-to-chase-late-payments\/","title":{"rendered":"Improve your cash flow: 10 great tips to chase late payments"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tImprove your cash flow: 10 great tips to chase late payments\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2017-07-17T11:32:12+01:00\">17 July, 2017<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Improve your cash flow: 10 great tips to chase late payments\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/improve-your-cash-flow-10-great-tips-to-chase-late-payments\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/antonia-chitty\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/08\/antonia.jpg\" class=\"entry-author__image\" alt=\"\" \/>\t\t\t\t<span class=\"entry-author__name\">Antonia Chitty<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"dark-grey h3\" id=\"news-article-subtitle\">A report published by Banks automated clearing system (BACS) has revealed that half of all SMEs are experiencing late payments and waiting an average of 24 days beyond agreed invoice payment dates.<\/p>\n\n\n\n<p>With poor cash flow being the single biggest reason that businesses cease trading, here are our top ten tips for chasing late payments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-know-your-customers\">1. Know your customers<\/h2>\n\n\n\n<p>Running credit checks on new customers could save you valuable time and money in the future. It&#8217;s now possible to run quick checks online. This tip isn&#8217;t confined to new customers &#8211; if you have reason to suspect an existing customer may have problems paying their invoices, checking their situation may be a prudent idea.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-be-clear-about-your-payment\">2. Be clear about your payment <\/h2>\n\n\n\n<p>Make sure your payment terms are included on every invoice you send and keep them consistent. Additionally, outline the terms verbally to new customers. Be clear about timeframes, costs associated with late payment and acceptable payment methods.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-avoid-cheques\">3. Avoid cheques<\/h2>\n\n\n\n<p>Encourage customers to pay using cash, electronic transfer or Direct Debit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-choose-the-right-people\">4. Choose the right people<\/h2>\n\n\n\n<p>Make sure that the people on your credit control team are equipped for the task in hand. They should be consistently firm but polite, resilient and organised. It&#8217;s also important that they enable, rather than impede future sales.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-5-make-a-courtesy-call\">5. Make a courtesy call<\/h2>\n\n\n\n<p>If you&#8217;ve issued a customer with a particularly large invoice, call them up before payment is due to make sure it has been received and there is no query. This is good customer service and pre-empts any possible delay in payment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-6-start-chasing-debtors-right-away\"><figure>6. <span style=\"color: revert; background-color: rgb(255, 255, 255);\">Start chasing debtors right away<\/span><\/figure><\/h2>\n\n\n\n<p>Don&#8217;t delay in chasing a late payment the day after it was due. It&#8217;s better not to allow leeway &#8211; the longer you leave it before you contact your customer, the further down the queue your invoice will drop.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-7-claim-interest\">7. Claim interest<\/h2>\n\n\n\n<p>You have a statutory right to claim interest on late payments at 8% over the Bank of England base rate. Additionally, you can claim compensation for debt recovery costs. Letting your customers know this as early as possible may encourage payment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-8-be-flexible\">8. Be flexible<\/h2>\n\n\n\n<p>On large, outstanding amounts be prepared to offer flexible payment terms. Whether this means regular instalments or simply splitting a bill into two manageable chunks, in some circumstances it may be your best chance of payment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-9-don-t-let-the-problem-escalate\">9. Don&#8217;t let the problem escalate<\/h2>\n\n\n\n<p>If you haven&#8217;t received payment for goods or services, stop supplying the customer immediately. If the customer needs your product or service in order to run their own business, cutting the supply may be exactly the leverage you need to initiate payment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-10-use-a-debt-collection-agency\">10. Use a debt collection agency<\/h2>\n\n\n\n<p>As a last resort, employ a debt recovery agency to act for you. Agencies will often work on a no recovery no fee basis, however if the debt is large the percentage commission can be substantial.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">A free guide to managing your cash flow<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Our guide is packed with expert advice to help you stay on top of your cash flow.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-a1fc2b60-1af9-49cb-89bd-02dd52c9de29\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Get your free guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1261586981-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1261586981-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A report published by Banks automated clearing system (BACS) has revealed that half of all SMEs are experiencing late payments and waiting an average of 24 days beyond agreed invoice payment dates. With poor cash flow being the single biggest reason that businesses cease trading, here are our top ten tips for chasing late payments. [&hellip;]<\/p>\n","protected":false},"author":161,"featured_media":11674,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[6],"tags":[24,25],"business_type":[4,3],"lilypad":[],"context":[],"industry":[],"persona":[],"imagine_tag":[91,109],"coauthors":[421],"class_list":["post-1582","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-cash-flow","tag-make-receive-payments","business_type-small-business","business_type-medium-sized-business"],"sage_meta":{"region":"en-gb","author_name":"Antonia Chitty","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1341533850.jpg","imagine_tags":{"91":"Growing business","109":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/1582","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/161"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=1582"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/1582\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/11674"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=1582"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=1582"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=1582"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=1582"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=1582"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=1582"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=1582"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=1582"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=1582"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=1582"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}