Getting paid without delay

Securing prompt payment is crucial for tradespeople like yourself. Once you’ve completed a job and issued your first invoice, it’s essential to receive your hard-earned money without unnecessary delays. If something seems awry and the payment fails to arrive on schedule, taking proactive measures to address the situation is vital. By following the straightforward strategies outlined below, you will not only increase the chances of receiving payments on time, but you’ll also be able to identify potential issues at an early stage.

Step 1 Approximately a week after dispatching the invoice and just prior to the anticipated payment date, get in touch with your client through a friendly phone call or an email. This serves as a courteous check-in to confirm that they’ve received the invoice and to ensure there are no concerns regarding the services you’ve provided thus far.

Step 2 On the due date, if no funds have appeared in your account, consider sending a statement to the client. Remember, this is not a demand for payment; rather, it’s a clear summary of the account’s status.

Step 3 If the payment is seven days overdue, consider sending a gentle reminder letter or email, kindly requesting payment.

Step 4 Between seven and 14 days overdue, take the initiative to call their accounts payable department and inquire about the delay. This call helps establish a line of communication and allows you to understand any issues causing the delay. It’s prudent to jot down any assurances of payment made during this conversation.

Step 5 When the payment reaches the 14-day overdue mark, contemplate sending a slightly stronger letter. This letter should not only request payment but also inform the client of potential late payment charges if the situation persists.

Step 6 From day 15 to day 30, make regular calls to the client to comprehend the reasons behind the delay. If your contract permits, communicate your option to suspend work due to non-payment. Transparency is of the essence.

Step 7 Maintain meticulous records of all interactions – phone calls, emails, and promises made by the client. This documentation can be invaluable if a promised payment fails to materialise.

Step 8 If, by day 30, no payment has been received, it’s time to evaluate the situation. Consider the risks of continuing to provide services without compensation. Can your business withstand the absence of payment for the next invoice? If a payment remains outstanding at the 30-day mark, don’t hesitate to temporarily halt services. Remember, while you may have a good rapport with the client, professionalism and the well-being of your business take precedence.