Money Matters

How to get paid faster: Practical tips for small businesses

Get paid faster by setting clear payment terms early on, invoicing promptly, and making payment as easy as possible. Enable online payment and use automation and you can better protect cash flow and make follow-up more consistent.

Published 7 August, 202611 min read Share

Government-backed research published in 2025 revealed that UK businesses are owed an estimated £26 billion in late payments at any given time, while late payments cost the UK economy almost £11 billion a year.  

This can put severe pressure on small businesses. When money arrives later than expected, it can make it harder to pay suppliers, cover wages, invest in growth, or plan appropriately for the months ahead. 

Strong customer relationships matter, but that doesn’t mean accepting late payment is unavoidable. The work involved in getting paid faster can start much earlier than chasing overdue invoices. Clear payment terms, a smooth invoicing process, and user-friendly ways to pay can all help customers understand what is expected and act sooner. And on your end, it’s important to have a clear view of what’s been paid, what is due, and when to intervene.

Key takeaways

• Set clear payment terms before work begins so customers understand exactly when and how payment is expected, reducing disputes and delays.
• Invoice promptly and accurately using accounting software, templates, and recurring invoices to ensure payment requests are sent on time and contain all necessary information.
• Make it easy for customers to pay by offering convenient payment methods such as online payment links, card payments, digital wallets, and Faster Payments.
• Consider shorter payment terms, deposits, or staged payments rather than relying on standard net 30 terms, helping to improve cash flow and reduce outstanding balances.
• Automate payment reminders and follow-ups to create a consistent collections process that keeps invoices visible without requiring manual intervention.
• Use incentives and penalties strategically, such as early payment discounts or clearly communicated late payment charges, to encourage prompt payment behaviour.
• Leverage e-invoicing and automation for greater visibility of paid, due, and overdue invoices, making it easier to monitor cash flow and identify issues early.
• Review your payment process end-to-end to identify bottlenecks and remove friction, helping customers pay faster and improving cash flow reliability.

Here’s what we’ll cover:

Set clear payment terms before work starts

One of the simplest ways to get paid faster is to agree tighter payment terms before the work begins. If the customer knows how much they need to pay, when they need to pay it, and how they can pay, there is less room for confusion later. 

For larger projects, some popular methods are: 

• Asking for a non-refundable upfront deposit before work starts. This can help protect your time, cover initial costs, and confirm that the customer is committed. 
• Setting payment milestones. Instead of waiting until the end of a project to invoice the full amount, you can agree staged payments linked to key points in the work.  

For example, you might invoice 30% upfront, 40% at an agreed milestone, and the remaining 30% on completion. 

This approach can be especially useful for service-based businesses, project work, bespoke orders, or any job where delivery takes place over several weeks or months. 

Make sure your payment terms are written clearly in your quote, contract, proposal, or engagement letter. The invoice should then repeat those terms so the customer sees the same expectations throughout the process.

Use technology to improve the invoicing process

A slow or unclear invoicing process can delay payment even when the customer is willing to pay. If an invoice is sent late, has missing details, or makes payment difficult, the customer has more reasons to put it aside. 

Your invoices should include:  

• The customer’s details 
• Your business details 
• The invoice date 
• A clear description of the work
• The amount due 
• The payment deadline 
• Accepted payment methods 
• The transaction reference number 

Using accounting software can make this easier. Instead of creating each invoice manually, you can use saved customer details, templates, product or service descriptions, and automatic calculations. This reduces the risk of errors and saves time when you need to send invoices regularly. 

Automated invoicing also helps you avoid missed invoices. If you provide repeat services, subscriptions, retainers, or ongoing work, recurring invoices can be created and sent automatically according to the schedule you set. 

Pro tip: send invoices as soon as the work is delivered, or at the payment milestone you have agreed. Waiting until the end of the week or month can add unnecessary delays before the payment clock even starts.

Use payment tools to enable easy online transactions

The easier you make it for customers to pay, the more likely they are to do it quickly. If your customer has to search for bank details, log into a separate banking app, or ask for clarification, payment can easily be delayed. 

Add a Pay Now button or payment link 

Online payment options can reduce friction. For example, invoices can include a Pay Now button or payment link that lets the customer pay by card, digital wallet, or another supported method. 

For many small businesses, this can make the payment experience feel more immediate. The invoice arrives, the customer opens it, and the next step is clear.

Offer payment methods customers recognise 

Payment services such as Stripe or PayPal can be integrated with accounting software, allowing customers to pay directly from the invoice. This means the customer does not have to copy bank details or start a separate payment process. 

Offering more than one payment option can also help. Some customers may prefer bank transfer, while others may find card payment, PayPal, or a mobile wallet more convenient. The goal is to remove avoidable barriers so the customer can pay in the way that suits them best.

Make bank transfers easier with Faster Payments

For UK bank transfers, customers may also be able to pay using the Faster Payment System, which allows near-real-time transfers between participating UK bank accounts. This can make bank transfer a convenient option, especially for customers who prefer paying directly from their bank. 

However, Faster Payments only helps once the customer decides to make the payment. Clear invoice details, the correct payment reference, visible bank details, and timely reminders are still important for encouraging customers to pay on time.

Negotiate faster alternatives to net 30 payment terms

Where possible, negotiate shorter payment terms before you begin working with a customer. You might ask for payment within 7 days, within 14 days, or on receipt of the invoice. 

Many businesses use 30-day payment terms as a default. But net 30 is not always the right fit, especially for small businesses that need steadier cash flow. 

Be direct and specific. Instead of using terms that customers may misunderstand, such as “net 30”, write “payment due within 30 days of the invoice date” or “payment due by [date].” 

For new customers, you can clarify that shorter payment terms, deposits, or upfront payment are temporary measures until the relationship is established. For ongoing clients, you can review payment behaviour over time and adjust terms if late payment becomes a repeated issue. 

You can also offer alternative payment arrangements where appropriate. For example, a customer may be more willing to agree to a monthly retainer, direct debit, or staged payment schedule than a large invoice at the end of a project. 

The important point is to discuss payment terms before the work starts. It is much harder to change expectations after the invoice has already been issued.

Automate reminders and follow-ups

Chasing payments can feel awkward, especially when you have a good relationship with the customer. But a polite reminder is often all that is needed. Customers may simply have missed the invoice, forgotten the deadline, or assumed someone else was handling it. 

Automation can make follow-ups more consistent and less personal. Instead of manually checking every invoice and deciding when to send a reminder, your accounting software can send reminders based on the payment deadline. 

A simple reminder schedule could include: 

• A confirmation when the invoice is issued. 
• A reminder three to five days before the due date.
• A reminder on the due date. 
• A follow-up seven days after the due date. 
• A further reminder 14 days after the due date. 
• A final escalation message 30 days after the due date. 

The exact timings will depend on your payment terms and customer relationships. For shorter payment terms, you may want reminders to start sooner. For larger customers with formal finance processes, you may need to allow more time while still keeping the invoice visible. 

Keep reminder messages clear, polite, and factual. Include the invoice number, amount due, due date, payment link, and contact details in case the customer has a question. 

Use incentives and penalties carefully

Incentives and penalties can help encourage faster payment, but they should support your wider payment process rather than replace it.

Early payment discounts

One option is to offer a small discount for early payment, such as payment within seven or 10 days. This can work well when faster cash flow is worth more to your business than the small reduction in revenue. 

Early payment discounts can also create goodwill by presenting prompt payment as a benefit rather than a demand. Just make sure the discount still protects your margins and is clearly explained before the customer agrees to the work.

Late payment fees and interest

Late payment fees or interest on overdue invoices can encourage customers to take deadlines seriously. However, these should be used carefully and explained clearly in your contract or terms of business. 

Customers should know upfront when charges may apply, how they will be calculated, and what happens if payment is missed. The aim is not to penalise customers unnecessarily but to set clear expectations and protect your business when invoices are ignored or repeatedly paid late.

How e-invoicing and automation improve cash flow visibility

E-invoicing and automation do more than help you send invoices faster. They also make it easier to see where your money is, which invoices need attention, and how incoming payments could affect your cash flow.

See which invoices are paid, due, or overdue

Electronic invoices are tracked digitally, and you can see their status without checking spreadsheets or searching through email threads. This helps you understand which customers have paid, which invoices are approaching their due date, and which ones need following up. 

This visibility is especially useful when several invoices are open at the same time. Instead of relying on memory or manual notes, you can use your accounting software to keep an up-to-date view of expected money coming in.

Reduce manual errors and disputes

Automation can reduce the errors that often slow payments down. For example, using invoice templates, saved customer details, automatic totals, and online payment links can help prevent missing information or incorrect amounts. 

When payments are matched to invoices automatically, there is also less risk of chasing a customer who has already paid. Fewer errors can mean fewer disputes, fewer delays, and a more reliable view of your accounts.

Plan ahead with clearer cash flow data

A clearer view of paid, pending, and overdue invoices can help you make better business decisions. You can see whether expected payments are likely to arrive in time to cover supplier bills, wages, tax, or other commitments. 

This can make it easier to plan spending, identify potential cash flow gaps, and decide when to follow up with customers before late payment becomes a bigger issue.

Build a faster payment process to help customers pay on time

Getting paid faster depends on the whole payment journey. Clear terms set expectations. Prompt invoicing starts the payment process sooner. Online payment options make it easier for customers to act.  

For many businesses, small changes can make a noticeable difference. Start by reviewing where payments usually slow down. Are invoices being sent too late? Are payment terms unclear? Do customers have to work too hard to pay? Are reminders inconsistent? 

Once you know where the delays happen, you can use automation and e-invoicing to create a smoother process from the moment work begins to the moment money reaches your account.

Frequently asked questions on speeding up payment

Why do businesses allow late payment? 

Businesses often allow late payment because they want to protect customer relationships, avoid uncomfortable conversations, or keep valuable clients happy. In some cases, they may also depend on larger customers who set their own payment terms. 

However, accepting late payment too often can damage cash flow and create pressure across the business. Clear payment terms, prompt invoicing, automated reminders, and consistent follow-up can help businesses stay professional without letting overdue invoices become normal. 

What should I do if a customer still doesn’t pay after multiple reminders? 

If a customer ignores repeated reminders, contact them directly to confirm they received the invoice and ask whether there is a problem preventing payment. If payment is still not received, you may need to follow your formal collections process, charge any agreed late payment fees or interest, or seek legal advice depending on the circumstances. 

How can I tell if a customer is likely to pay late? 

While there are no guarantees, warning signs can include requesting unusually long payment terms, delaying paperwork before work begins, repeatedly disputing small invoice details, or having a history of missed deadlines. Checking references for larger contracts and agreeing payment terms upfront can help reduce your risk.

Is it worth running credit checks on new business customers? 

For larger contracts or long-term commercial relationships, a business credit check can help you assess whether a customer has a history of paying suppliers on time. For smaller jobs, deposits or staged payments may offer sufficient protection without adding extra administration. 

Browse more topics from this article

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