Getting paid on time is vital for business survival. Your customers are the main source of business cash, and without that cash, paying suppliers, staff, lenders and yourself becomes much harder. In this episode, we explain why late payments put pressure on your business, how better credit control protects cash flow, and how the PTC approach — Policies, Tracking and Consistency — can help you collect money with more confidence.

About this episode

Collecting money from customers is a big deal because cash keeps the business alive week after week.

We look at why getting paid on time matters, what happens when customers delay payment, and how to take more control of customer collections without damaging good relationships.

The episode uses a simple framework: PTC. That stands for Policies, Tracking and Consistency. Together, those three areas help you set expectations, monitor what is owed and act when payment is late.

Why getting paid on time matters

If customers do not pay on time, the pressure does not disappear. Suppliers still need paying. Staff still need paying. Lenders still expect payment. You still need money from the business.

You may be able to use savings or borrowing for a while, but that is not a long-term answer. The cash-generating part of most businesses is the customer base. That means customer payment behaviour has a direct impact on survival, stability and stress.

For a wider view of cash management, our episode on Cash Flow Management Tips: 5 Essential Tips is a useful supporting guide.

The PTC approach to getting paid on time

The episode explains getting paid through three practical areas: Policies, Tracking and Consistency.

This matters because late payment is rarely solved by one reminder email. It needs a business approach that starts before the work begins and continues until the money reaches the bank.

1. Policies: set the rules before the work starts

Policies are not just documents. They are about your whole approach to credit terms, customer expectations and how seriously you treat payment.

Customers often pick up the culture of a business. If they sense that credit terms are loose or payment follow-up is weak, they may treat payment less seriously.

That is why it helps to communicate your payment terms clearly at the start. Even a simple email confirming what was agreed, when payment is due and how the invoice will be handled can make a difference.

Check customers before giving credit

Giving credit is always a risk. The risk is that the customer does not pay.

Before taking on work, think about whether a customer is likely to pay on time. Where appropriate, carry out background checks, look at payment behaviour and be cautious if a customer pushes back against basic payment terms before work has even started.

Bigger does not always mean safer. Larger customers can still delay payment, move invoices around departments or create extra pressure on smaller suppliers.

Communicate payment terms clearly

Payment terms should be clear, simple and shared with the right person.

If your terms are 21 days, 14 days, payment upfront, staged payments, or payment before delivery, make that clear before work begins. The customer should know what to expect before the invoice arrives.

Make sure the person who pays the bills receives the information. A good relationship with the buyer is helpful, but payment often depends on the accounts or finance contact processing the invoice correctly.

2. Tracking: keep an eye on what customers owe

Tracking means monitoring invoices after they are sent.

If you issue an invoice and then forget about it, payment can drift. You need a system that records who owes money, when the invoice was sent, how much is due and when payment should arrive.

Cloud accounting, invoicing apps and bookkeeping systems can make this easier. They can help you issue invoices, monitor unpaid balances and send reminders. If software is not being used, a spreadsheet or manual tracker is better than no tracker at all.

For practical invoicing mistakes that delay payment, see Billing Mistakes to Avoid: Get Paid Faster and Protect Cash Flow.

Review outstanding invoices regularly

Set aside time each week to review unpaid invoices.

Look at what is owed, who owes it, how old the invoice is and whether any customer has raised a valid query. If there is no agreed reason for delay, follow up.

Regular review keeps payment collection visible. It also helps you spot whether a small number of customers are responsible for most of the money owed.

3. Consistency: apply the system fairly

Consistency means applying your payment process across the business.

Do not let personality decide who gets chased and who does not. It is easy to give extra leeway to customers we like, customers we feel nervous about, or customers that appear large and important. However, inconsistent credit control can create problems.

When payment is late, reminders should go out promptly. If a payment plan is agreed, confirm it in writing. Keep notes of what was agreed, when payment is expected and what happens next.

Use reminders before and after the due date

One useful tip from the episode is to contact customers before the payment deadline passes.

For example, if payment is due in 21 days, check before then that the customer received the invoice, that it went to the right person and that there are no problems with the details.

This reduces excuses later. If the invoice went to the wrong department, landed in spam or was never received, you can fix the issue before the due date arrives.

Separate the relationship from credit control

Some business owners find payment conversations uncomfortable.

One practical way to manage this is to separate day-to-day customer relationships from credit control. For example, reminders can come from an accounts email address, or someone else in the business can handle follow-up.

This keeps the payment process professional. It also helps you say that the follow-up is part of the business system, not a personal argument with the customer.

Practical steps to improve customer payments

• Agree payment terms before work starts.
• Send a written summary of the agreed terms.
• Make sure the invoice reaches the person who pays the bills.
• Credit-check customers where appropriate.
• Send invoices promptly when work is complete.
• Track every invoice and due date.
• Review unpaid invoices every week.
• Follow up before the due date to confirm the invoice was received.
• Send reminders quickly once payment is late.
• Confirm any payment plan in writing.
• Use software, cloud systems or spreadsheets to monitor what is owed.
• Apply the same process consistently across customers.

How technology helps with getting paid

Technology can make credit control easier, but it still needs action.

Software can issue invoices, track unpaid balances, send reminders and show reports on outstanding customer debts. This helps you see what is due and act sooner.

However, software does not replace the need for clear policies and consistent follow-up. The best results come when technology supports a clear payment process.

For a related digital finance topic, our episode on E-Invoicing: Why It Matters for Your Business explains why digital invoicing matters for modern businesses.

FAQs about getting paid on time

Why is getting paid on time important?

Getting paid on time protects cash flow. Without customer cash coming in, it becomes harder to pay suppliers, staff, operating costs, lenders and yourself.

How can we get customers to pay on time?

Start by agreeing payment terms clearly, sending invoices promptly, tracking due dates, following up before and after the payment deadline, and applying the process consistently.

What does PTC mean for getting paid?

PTC stands for Policies, Tracking and Consistency. Policies set expectations, tracking monitors what is owed, and consistency makes sure the process is followed properly.

Should we chase customers before an invoice is overdue?

Yes, a polite check before the due date can help confirm the invoice was received, sent to the right person and has no issues. That can prevent avoidable payment delays.

Episode Timecodes

• 00:27 – Introduction to getting paid on time
• 00:47 – Why late payment creates pressure
• 01:10 – Customer cash keeps the business moving
• 01:35 – PTC: policies, tracking and consistency
• 02:01 – Due diligence and checking customers
• 02:19 – Communicating payment terms clearly
• 03:31 – Culture and taking payment seriously
• 04:08 – Tracking invoices after they are sent
• 04:46 – Software systems and electronic invoicing
• 05:02 – Weekly review of outstanding customers
• 06:08 – Consistency in credit control
• 06:45 – Agreeing payment proposals in writing
• 07:44 – Summary of policies, tracking and consistency
• 09:32 – Checking before the payment deadline
• 10:21 – Separating customer relationships from credit control
• 10:58 – Using accountant advice to support better habits
• 11:17 – Final thoughts and wrap-up

Related episodes

• Billing Mistakes to Avoid: Get Paid Faster and Protect Cash Flow
• Cash Flow Management Tips: 5 Essential Tips
• Working Capital Explained: Why It Matters and How to Improve It

Key takeaway

Getting paid on time is not just an admin task. It is a cash flow survival issue.

Set clear policies, track what customers owe and follow up consistently. Do not rely on hope, memory or customer goodwill. A simple, professional credit control process helps protect your cash, reduce stress and keep your business moving.

Plan it, Do it, Profit.

“Customers are the cash-generating part of your business. If they do not pay on time, your business carries the pressure.”

Further Support

The I Hate Numbers podcast helps business owners understand cash flow, credit control, bookkeeping, accounting, profit and business finance in a practical way. We simplify financial topics so you can make better decisions and feel more confident with your numbers.

If you need help improving payment terms, setting up credit control, using invoicing software or planning cash flow more clearly, you can contact us for an initial chat.

You can also watch more practical finance and tax support on the I Hate Numbers YouTube channel, or listen and follow on Apple Podcasts.

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You are listening to the I Hate Numbers Podcast with Mahmood Reza. The I Hate Numbers podcast mission is to help your business survive and thrive by you better understanding and connecting with your numbers. Number love and care is what it's about. Tune in every week. Now, here's your host, Mahmood Reza.

Hi folks, and welcome to episode number three of I Hate Numbers. I can't believe it's episode number three. Thanks for your company in the last two podcast episodes, and thank you for lending me your earlobes for today's episode. Now, I'm not a big fan of the cold. Don't really like it. I'm not a big fan of fruit on pizza, even though it might be some of people's bags.

But the one thing I really hate, I really hate not getting paid on time without good reason. So, today's episode on I Hate Numbers podcast is about what we can do to try and get people to pay on time. Now, fundamentally, why is it an important thing? Well, if you don't get paid on time by your customers, your clients, well, you're still going to have people knocking on your door saying it's paying-your-bills time there as well,

and that money, that cash has got to come from somewhere. You can certainly dip into your savings if you've got any. You can certainly borrow money. You've all got to pay it back at some point, but ultimately, the cash generating part of your business is your customers. So, I'm going to share with you a little mnemonic here PTC that summarises what we can do to try and get our customers to get their act together and to keep that money flowing in and to keep those business rules

going. Now, the P is about policies. So, policies, for me, it's not just about documentation, what you're writing out, it's about your whole approach to your credit terms as such. It's the culture that you exhibit and customers pick up that vibe in terms of how you behave, how you deal with them in terms of whether they think you are going to be relatively okay for bending your credit rules or whether they need to take your business a bit more seriously.

Certainly, outset when we're very excited about the opportunity of doing business with a client. Don't get sidetracked. Don't let your personality be swayed by the facts of that you got the opportunity here to sell stuff into people. Make sure you do your due diligence. So, check out the customer if you can.

If it's a customer that you can do a credit check on worthwhile doing a little bit of background checks on that customer. Make sure your customer knows what your terms of business actually are. So, if you say to them your business terms are, say, 21 days from the day you do the work to giving them that invoice, make sure you communicate that clearly.

A lot of business owners still, I know and I think the stats is around about 30 odd percent of businesses don't actually communicate their credit terms with businesses at the outset. So, you take on board a new client. You are really sort of excited by doing work for this client here. You might be a little bit nervy about here.

Even if it is a basic email, when you summarise the conversation with the client, you say, great, thanks very much, we're looking forward to working with you guys, and our terms of business are X number of days from the day the invoice is done. Make sure that's communicated. Get that upfront. If somebody doesn't want to do that, doesn't agree with it, then the warning sign should go on.

Walk away from that. Doesn't matter how big the business is. If you think actually businesses are less risky than individuals, you might think bigger businesses are okay. They've been in business a long time. You don’t know what goes on behind the scenes here. So, again, effectively, you need to make sure that you apply that at the very beginning.

The culture part of it, we're going to pick up again when we talk about what we do going forward if a customer doesn't pay, you've got to make sure that you actually exhibit that appearance of actually, yes, I'm going to do a great job for you, but also I take my credit terms seriously. At the end of the podcast, I'm going to share a couple of tips with you,

by the way. If you are not that comfortable having those conversations with the customers, what can you do to maintain a real positive relationship with somebody and still get paid for it? And remember, if that customer turns out to be very naughty, it's not paying their bills, then you've got to make sure in your own mind that you still want to work with that customer.

The next part of the approach to getting paid on time is about tracking and we're not talking about any David-Crockett-type thing here. We're talking about if you issue an invoice out to a customer, you need to keep an eye on it. So, if you've given them 21 days in which to pay their bills, then once 21 days is expired,

you know, what's the follow up here? So, you need to keep a reminder. You need to send it out to them. Have a system in your business that actually records when the invoice goes out, who it goes out, how much they owe you, what the terms of business are, and then once those days elapse, you need to make sure that you follow up accordingly.

Most apps these days, most software systems that enable you to generate an invoice, get the invoice together, describing what you've done for them, send it out there electronically or otherwise. My personal preference, electronic tends to be a much easier way of doing these things and keeping an eye on things.

At the end of each week, I will suggest that you have a look at all your outstanding customers. Have a look at them. If there are good reasons that they've communicated to you and you've agreed for not paying their bills or time, great. If not, you need to pursue them. Typically, over the years that I've found is there's an inverse relationship between the number of customers that you've got and how much they owe you.

So, typically you'll find that 80% of what's owing to you comes from a very small cohort of customers there as well. Bigger doesn't necessarily mean better by the way. So, you mustn't get into the idea of thinking, oh, I mustn't upset this particular customer because we do a lot of business with them. If they're not paying you on time or they're not likely to, and you've had issues with them, you've got to think to yourself, well what about the stress it's putting in my business.

Can I afford to pay out those bills or I'm waiting for that customer to pay them? And there is the very real possibility the longer you leave it to pursue that and get the customer paying their bills on time, the greater the likelihood of them effectively going belly up, not paying their bills on time, and you've got a massive situation on your hands.

Now, the third thing is consistency. Now, again, I don't always follow my own advice, which is very naughty, which is probably what a lot of advisors do. I do. Now, I have my credit control taken care of internally, but don't differentiate thinking, oh, I like this person, therefore I'll give them credit. I don't like this person.

I'll be a bit more bullish. It's going to be a consistent system that applies across the board. So, what that means is once the time has elapsed by which you should get paid automatically or pretty much human intervention, get those reminders out to them pretty promptly. And pretty promptly means literally the next day those reminders go out to them.

If they contact you and you're going to agree to some form of payment proposal, they might be hitting hard times and you are comfortable with that, then first of all, don't accept whatever they tell you as what they're going to pay you. You are in the driving seat there as well. So, keep the notes of what that payment proposal has been.

Get it agreed in writing, and when I say in writing, you don't need a lawyer. Just get it into an email. Say, yes, that's okay, we're happy to accept two installments. You'll pay X percent now, expected in so many days time, do you agree to it? And then get that sent out to them, get them to acknowledge it, and then that's fine that you go on.

Don't let the personality of the business owner sway your decision. Again, as I said, I've made that mistake myself. I've got my fingers burnt 25 years ago when I first started, and once everything gets back onto an even keel, I made the same mistake again. I'll let the personality sway systems. I did get reprimanded by my credit control department, so never again, but again, be consistent.

So, let's summarise what we talked about here. Getting paid on time is an absolutely critical thing if you don't get paid on time, then that puts pressure on your own business. You've got to find that cash, the funds to pay your supplies, pay your staff, pay your operating costs, and pay yourself. That money fundamentally comes from your customers.

Customers will pick up on the vibe, believe it or not. Now, I'm not saying it's a blanket rule. There will be exceptional times, but use your judgment carefully. Don't be swayed by the personality. So, that PTC again, policies and culture. So, due diligence. Establish your credit terms. Know who you're going to be communicating it to.

Make sure it's the person who pays the bills. Size of business. The bigger the business, the bigger the risk. Tracking. Keep an eye on it. Software systems, cloud systems, apps, they're all around you and they can make it easier to send those invoices out. Just get those invoices sent out on time. And remember, by the way, that customers count the days from when they get the invoice, not from when you've done the work.

So, again, get your act together, get those invoices out as soon as the work is completed. Monitor them. So, have a look at reports, which are quite accessible on these applications. If you don't like software, which is a bit silly, but if you don't like software, then keep a piece of paper, keep a spreadsheet, but monitor who you billed, when they owe the money, and have a look at that on a weekly basis.

I'm probably a bit sad. I do mine on a more regular basis, on a daily basis, but that's the nature of the business that I'm in. And lastly, be consistent. Don't differentiate based on personality. Business is a business and if a business doesn't pay you, they disrespect you. They don't want to pay their bills on time, they go under, they hide under the duvet, or whatever they're doing here.

That's not good news and your business is going to suffer and you are going to suffer as a result. Couple of tips to share with you what you might find slightly easier to deal with. I would recommend that if you do work for a client. You've got all the terms agreed. You've got everything established here. Before the credit term is up,

so, if you've given 21 days, I would typically, as part of a call cycle, contact the customer. See is everything okay? Did they get the invoice? Et cetera, et cetera. You don't want that my dog or hamster ate the invoice, or didn't receive it, so that way you can tick the box. If they say, oh, we've never received the document,

it could have gone to the wrong department. It could have gone somewhere else. It could have gone into spam folder. That gives you the opportunity to reissue the invoice. Another thing. If you're finding it difficult to have that conversation with a client who hasn't paid their bills, you feel that you might damage that potential relationship,

if it's a relationship that's worth continuing with, then what I would recommend is in your email setup, get another email setup, something like accounts@whatever your business name is and get that sent from them. If you've got somebody else in the business that is not customer-facing, perhaps they can handle the admin side,

Perhaps they could send out the email. So, you can separate yourself from the actual credit-control function and ultimately just say, company policy, this is what happens here. So, there's a bit of a gap given between you and that end customer. A tip that I give to all my clients is to say, look, just say my accountants told me to do this

if suddenly your culture changes to be a bit more on top of it. Okay guys, look, thank you very much for sharing your earlobes. Hope you enjoyed the third episode of I Hate Numbers Podcast. Getting paid on time. Absolutely critical. Keep that money coming in and your business will be thriving and prosperous there as well.

Check out the show notes at the end. Check out the useful links and if you'd love the episode, share it with your friends, family, and those who will be interested. Take care. Ciao. We hope you enjoyed this episode and appreciate you taking the time to listen to the show. We hope you got some value. If you did, then we'd love it if you shared the episode.

We look forward to you joining us next week for another I Hate Numbers episode.