Getting paid on time: a simple accounts-receivable routine
An unpaid invoice is a loan you didn't agree to give. Here's a light-touch receivables routine — clear terms, prompt invoicing, and a polite chase sequence — that gets you paid without souring relationships.
Sales feel like the finish line, but the sale isn't real until the money arrives. The gap between "invoice sent" and "cash received" is accounts receivable — and for most small businesses it's the biggest, most controllable drain on cash.
Terms first, surprises never
Getting paid on time starts before the invoice: agree clear payment terms up front — how many days, what method — and put them on every invoice. A customer who knew the terms on day one is far easier to chase on day thirty.
Invoice the moment you deliver
The single highest-return habit is invoicing immediately. An invoice sitting in your drafts is your cash sitting in the customer's account. Send it the day the work is done; the clock only starts when they receive it.
A polite, consistent chase sequence
Most late payments are forgotten, not refused — so a light, consistent sequence works:
- A friendly reminder a few days before due.
- A short note on the due date.
- A firmer follow-up about a week after.
Applied to everyone the same way, it reads as good process, not nagging. Track who owes what and how overdue, so nothing slips — that visibility is half the battle.
General information on receivables practice, not financial advice. For your specific situation, consult a licensed accountant.
Frequently asked questions
When should I send an invoice?
The moment the work is done or the goods are delivered — not at month-end. Every day between delivery and invoice is a day of free credit you're extending. Same-day invoicing is the cheapest cash-flow improvement there is.
How do I chase without damaging the relationship?
Make it a routine, not a confrontation. A friendly reminder a few days before due, a polite note on the due date, and a firmer follow-up a week after — sent consistently to everyone — reads as good process, not aggression. Most late payments are simply forgotten, not refused.