How to get paid faster
Most late payment in the trades is not caused by customers who will not pay. It is caused by invoices that went out late, invoices that were awkward to pay, and nobody following up. All three are fixable without a difficult conversation.
Nine changes, roughly in order of impact
1. Invoice the same day
This is by far the biggest lever and the one most often ignored. An invoice sent from the driveway gets paid faster than the identical invoice sent on Sunday night, because you are still fresh in the customer's mind and the work is still obviously worth what you charged.
2. Put your bank details on the invoice
If the customer has to email you to ask how to pay, you have added days for no reason. Sort code and account number should be on every document automatically.
3. Offer a card payment link
Some customers will pay in the thirty seconds after they open the email if they can just tap. They will not go and set up a new payee in their banking app that evening. Meet them where they are.
4. Give a date, not a duration
"Payment due by 29 August" is acted on. "Payment terms: 14 days" requires the customer to do arithmetic, and anything requiring arithmetic gets postponed.
5. Take a deposit on larger work
On any job with material costs up front, invoice a deposit before you start. It protects your cash position and it filters out the customers who were never going to pay.
6. Invoice long jobs in stages
Do not carry weeks of labour and materials and then send one large bill. Stage payments keep money moving and make the final invoice much less of a shock.
7. Get the quote signed
A signed estimate ends the argument about scope before it starts. Most payment disputes are really scope disputes wearing a different coat.
8. Chase early and neutrally
A short, friendly reminder the day after the due date works better than an angry one three weeks later. Assume it was an oversight, because it usually was.
9. Ask for the reference commercial customers need
If you invoice businesses, ask for the purchase order number before you start. An invoice without a PO can sit in an accounts inbox indefinitely and nobody will tell you why.
What you are legally entitled to
If a commercial customer pays late, you have a statutory right to claim interest and a fixed sum in compensation for recovering the debt, under the Late Payment of Commercial Debts legislation. This does not apply to private consumers.
In practice most trades never invoke it, because the relationship is worth more than the interest. But it is worth knowing it exists, because mentioning statutory interest politely in a second reminder is often enough to move an invoice up someone's queue.
This is general information, not legal advice. If you are pursuing a significant unpaid debt, take proper advice.
Getting paid — questions
What payment terms should a tradesman use?
Shorter terms and an explicit due date. Fourteen days is common in the trades, and stating an actual calendar date rather than a number of days gets acted on more reliably.
Should I take a deposit?
On any job with significant material costs up front, yes. It protects your cash flow and reduces your exposure if the customer changes their mind.
Can I charge interest on late payment?
For commercial customers, yes. Statutory interest and a fixed recovery sum apply under the Late Payment of Commercial Debts legislation. It does not apply to private consumers.
What is the single most effective change?
Invoicing on the day you finish the job. Nothing else comes close, and it is entirely within your control.
Invoice before you leave the drive
Quill is built so a finished job becomes a sent invoice in under a minute, with your bank details and a payment link already on it.