How to get paid faster: 10 ways to cut late payments

The fastest way to get paid is to make paying you easy, expected and impossible to forget. Most invoices are not paid late because the client cannot pay, but because the invoice arrived late, went to the wrong person, was unclear, or simply slipped down an inbox. Each of the ten habits below removes one of those reasons.

1. Invoice on the same day

Every day between finishing the work and sending the invoice is a day added to your wait. Send the invoice when the job is done or the goods are delivered, not at the end of the month. For regular work, use recurring invoices that go out automatically.

2. Agree payment terms before you start

Put the terms in the offer or contract: amount, due date, deposit and what happens if payment is late. A client who signed "payment within 15 days" will rarely argue about it later.

3. Use a real date, not "Net 30"

"Due 15 November 2026" is clearer than "30 days" and does not depend on when the client opens the email. Shorter terms also help: 14 or 15 days is normal for many small businesses.

4. Make the invoice impossible to misread

Include the client's purchase order number, a clear description, the period of work and a contact person. Our invoice checklist lists every detail an invoice needs to be accepted by the client's accountant on the first try.

5. Add a payment link

A client who can pay by card from the invoice email, in under a minute, pays sooner than one who has to log in to online banking and copy an IBAN. Keep bank details on the invoice too, for clients who prefer transfers.

6. Send it to the person who pays

Ask who approves invoices and send it to them, with the person you worked with in copy. An invoice sitting in a general mailbox can wait for weeks.

7. Automate reminders

A reminder schedule that runs on its own does more than any good intention. A simple sequence:

8. Know when the invoice was opened

If you can see that the client opened the invoice on day one, you know a reminder is needed. If they never opened it, the problem is the email address, not the client.

9. Ask for deposits on large jobs

For projects that take weeks, bill 30–50% up front and the rest at milestones. You reduce the risk and keep cash flowing while the work is in progress.

10. Know your rights on late payment

In the EU, the Late Payment Directive (2011/7/EU) applies to business-to-business invoices:

• payment terms should not exceed 60 days unless expressly agreed and not grossly unfair to the supplier
• public authorities must normally pay within 30 days
• you may charge statutory interest of at least 8 percentage points above the European Central Bank reference rate
• you may claim a fixed €40 for recovery costs per late invoice

Each EU country applies the directive through its own law, and some go further. Ireland, for example, sets the fixed compensation at €40 for invoices up to €1,000, €70 up to €10,000 and €100 above that.

In the UK, the Late Payment of Commercial Debts (Interest) Act 1998 gives businesses similar rights:

• if no payment date was agreed, payment is late 30 days after the customer receives the invoice or after you deliver, whichever is later
• statutory interest is 8% plus the Bank of England base rate, unless your contract sets a different rate
• you may claim fixed compensation of £40 for debts under £1,000, £70 for £1,000 to £9,999.99 and £100 for £10,000 or more, plus reasonable recovery costs

A Commercial Payments Bill, in Parliament since May 2026, would cap the payment terms large businesses give smaller suppliers at 60 days and make late-payment interest mandatory. It is not law yet, so follow its progress on the Small Business Commissioner's website.

Elsewhere, check the local law or ask your accountant before charging interest, and put the interest terms in your contract.

Reminder email templates

Before the due date

A few days late

Final notice

Measure it: days sales outstanding (DSO)

DSO tells you how many days, on average, it takes to get paid:

DSO = (accounts receivable ÷ credit sales in the period) × number of days in the period

If you invoiced €60,000 in the last 90 days and €20,000 is still unpaid, DSO = (20,000 ÷ 60,000) × 90 = 30 days. Track it every month. If it grows, your clients are paying later, before you feel it in the bank account.

How Clientlly helps

In Clientlly, invoices go out with a card payment link, you can see when they are opened, and reminders are sent automatically 3, 14 and 30 days after the due date. Recurring invoices go out on their own, and the debts report shows who owes what, sorted by days overdue. See the invoicing module.