Why Getting Paid on Time Matters

Late payments don’t just cause frustration — they damage your cashflow, restrict growth, and can force unnecessary borrowing. By tightening up your payment processes, you protect your business and create healthier financial habits.

Clear Terms Make a Big Difference

Before any work begins, agree on:

• Payment terms in writing
• Deposit requirements
• Due dates, instalments, or milestones
• Consequences of late payment

This sets expectations early and reduces misunderstandings later on.

Use Digital Tools to Speed Up Payments

Digital systems make invoicing smoother and faster. We recommend using modern accounting software such as Xero. It helps you:

• Send invoices instantly
• Track overdue payments
• Automate reminders
• Accept online payments

Be Clear, Be Direct, Be Consistent

Customers respond better when communication is firm, polite, and regular. Keep to your procedures — don’t let overdue invoices linger.

Before the Due Date

• Send a friendly reminder
• Confirm they have everything they need to pay

On the Due Date

• Send a clear message confirming payment is now due

After Payment Becomes Late

• Send a firm reminder without delays
• Call if necessary — calls get results
• Reinforce the agreed terms

How to Reduce Future Problems

Here are steps that help prevent late payments altogether:

• Carry out basic credit checks
• Ask for deposits or staged payments
• Use direct debit or payment collection services
• Implement late payment charges where appropriate

Final Thoughts

Getting paid on time is not about chasing — it’s about setting the right procedures. With clear communication, good systems, and strong boundaries, you protect your cashflow and strengthen your business.

Useful Links

• Xero Implementation & Support
• Book a Call with I Hate Numbers
• I Hate Numbers YouTube Channel

Be sure to follow and subscribe to the I Hate Numbers podcast for weekly episodes that help you plan it, do it, and profit.

Who likes getting paid late? Well no one, especially when there's no good reason for it. In this week's episode of I Hate Numbers, I'm going to be talking about getting paid on time. Because let's be honest, late payments will mess up your cash flow, your mood and your motivation. In today's episode, I'm going to be covering keeping cash flowing, maintaining a positive relationship while still getting paid,

setting up clear policies, tracking your invoices, being consistent, plus some tips and tricks to make sure you're not left chasing payments. Let's get into it.

Now firstly, why is getting paid on time so important? Above all, getting paid on time is essential, and it's not just about the money. It's about keeping your business running. If you don't get paid, guess what's going to happen? You'll have people figuratively knocking on your door, suppliers’ bills will be stacking up.

You won't even be able to pay yourself. Your customers are the cash engine of your business – think of them like your ATM. And making sure they pay on time is part of keeping that engine running smoothly. Let's start with the first key step: policies. Now policies is about setting the rules. Now, don't get sidetracked. Before you even start working with a client,

right at the outset, set out clear payment terms. This will be your first line of defence against late payments. Where you can, do a quick background check on new clients. Do they have a track record? Social media, the internet is a great thing just to do some exploratory work. Ask your friends. Have other freelancers

worked with them? If you can, check the reviews or ask in your network, certainly. Now next, make sure your client understands your payment terms from the beginning. Don't introduce the terms afterwards. Communicate them clearly. If you are dealing with an organisation, make sure you know who the person is that you contact.

Make sure you've done all the requisite steps at the beginning, but get that sorted from day one and communicate it via email, make sure it is there written down. What's the deadline for paying? What happens if they don't pay on time? And identify clearly what they will owe you at those payment terms.

Now here's the thing, 30% at least of businesses do not communicate their terms upfront. And guess what? Those are the ones that struggle the most with late payments. Make it clear. You take your payment terms seriously. Payment terms are part and parcel of the services you are contracting to deliver. It's not just about the quality artwork you're delivering and performances.

It's about getting paid as well. Now we need to talk about tracking invoicing, knowing who actually owes us money. So you sent out your invoice. Well, now what? You need a system to track it. Now, if you're just sending out invoices hoping for the best, keeping those fingers crossed, you will make life much harder for yourself.

You need to keep a track, a record of who owes you money, how much they owe, and when that payment is due. Set a reminder to check your invoices at the end of each week, and if something is overdue, follow it up. This is where digital accounting with things such as Xero will be a great asset in your business.

Now, the longer you leave it, the harder it is to get paid. The squeaky wheel gets the grease, so don't be afraid to remind people. Put your business hat on and make sure you follow up. Don't be timid and don't be scared. Now, here's a mistake that many freelancers have made and will continue to make. They treat clients differently.

One client pays late, but you like them, so you let it slide, you let it slip. You might even be a bit wary of that client, so you don't really pursue them. Another client is late, but you are stricter with them. Make sure you apply the system to everybody. Now, if a client doesn't pay on time, follow it up.

Don't wait weeks or months. The longer you wait, the more the client will think that that's the culture that you operate in. So, it's fair game. The longer you wait, the more likely it is you won't get paid at all. That client may have the money to pay you, but they've spent it if they're not being reminded.

Consistency is key. And what about some tips and tricks to share with you to get paid faster? Well, let me wrap up with some quick tips to help you get paid on time every time. Firstly, invoice immediately. Once the work is completed, assuming you're not invoicing upfront, the sooner you send that invoice out after the work is delivered, the sooner you'll get paid.

Clients will count the days from when they get the invoice, not when you finish the assignment. Secondly, be clear on your payment terms. Due in seven days from date of invoice is better than due at some point. Consider offering incentives. Offering discounts for early payment can speed things up, but they can also be expensive.

So make sure you check out those terms with your accountant. Fourthly, have it in your agreement that you have the option to charge late fees. Even a small charge can push clients to pay on time. Fifthly, make it easy for the client. Don't put obstacles in their way. Where you can, offer multiple payment options:

bank transfer, PayPal, whatever makes it quick for them. And if you are offering PayPal or credit card facilities, consider factoring in the fees that you pay to those payment providers to compensate for the extra cost. And lastly, follow up. If it's overdue, chase it up. There could be a number of reasons your bill was not being paid.

It's not always a deliberate act on a client. They could have forgotten. They've not received the invoice. Follow it up, be friendly, be polite, and a polite reminder can go a long way. Now what's the wrap up? Well, getting paid on time isn't just about money. It's about respecting your work and running your business as well.

Send out your policies clearly, track your invoices, but be consistent and don't be afraid to follow up. What I advise my clients is perhaps set up a separate email, call it finance at creative artist, or whatever your name will be, and use that to send out the invoices itself. And if you found this helpful, share it with a fellow creative.

Let's build up that subscriber list and let's keep the money flowing. Until next time, plan it, do it, profit.