If you’re running a business, you’ve likely faced this scenario: the work is done, the invoice is sent… and then you wait. And wait. And chase.
Late payments are more than just frustrating—they can seriously disrupt your cash flow, limit your growth, and even threaten the survival of your business.
The good news? With a few simple shifts in your payment terms and processes, you can create healthier financial habits, improve client relationships, and protect your business from cash flow gaps.
Why Payment Terms Matter More Than You Think
Clear payment terms aren’t just a formality—they’re the foundation of good financial management. Without them, it’s far too easy for invoices to be delayed, forgotten, or deprioritised.
According to the Federation of Small Businesses (FSB), around 50,000 UK small businesses close each year due to late payments [FSB, Time to Act on Late Payment, 2023]. That’s a staggering figure—and one that highlights just how critical it is to get this right.
Five Practical Ways to Improve Payment Terms and Cash Flow
At Kingston Burrowes, we work with businesses of all sizes to help them take control of their finances—and payment discipline is often the first step. Here’s how you can start setting boundaries and building better cash flow habits:
1. Set Clear Payment Terms from the Start
Include your payment terms in every proposal, contract, and invoice. Whether it’s 7, 14, or 30 days, be consistent and make it visible. Let clients know exactly what to expect—and stick to it.
2. Invoice Promptly and Accurately
Delays in invoicing can quickly snowball. Make it a habit to send invoices as soon as the work is complete or the product is delivered. Double-check details to avoid disputes that hold up payment.
3. Offer Incentives for Early Payment
Consider rewarding prompt payment with a small discount. It’s a tactic that can encourage clients to prioritise your invoice over others, particularly in sectors where 30+ day terms are common.
4. Use Automated Reminders and Tools
Online accounting software like Xero and QuickBooks can send automatic reminders and allow clients to pay directly through the invoice. This reduces admin time and makes it easier for clients to pay quickly.
5. Don’t Be Afraid to Follow Up
Chasing payments can feel uncomfortable—but it’s a vital part of running a business. A polite but firm follow-up email or call after the due date shows you’re serious about your terms. If late payments are persistent, consider revising your agreement or requiring deposits.
Setting Boundaries: It’s About Respect and Sustainability
Improving your payment process isn’t just about getting paid on time—it’s about setting respectful boundaries and creating a business model that works for you.
When you put strong systems in place, you’re protecting your cash flow, your time, and your peace of mind. And ultimately, that allows you to serve your clients better—with less stress, more stability, and greater confidence in your financial position.
Need Support Putting These Steps in Place?
At Kingston Burrowes, we help business owners take control of their cash flow with practical, tailored advice. From reviewing your invoicing process to helping you implement the right systems and software, we’re here to support you every step of the way.
If you’re tired of chasing invoices and want to build healthier financial habits, get in touch with our expert team today. Let’s make your finances work for you—not against you.
