Let's be honest - chasing invoices is one of the most frustrating parts of running a business. You've done the work, delivered the goods, and now you're playing phone tag with a client who's conveniently hard to reach. If that sounds familiar, you're not alone. It's one of the most common headaches I see with business owners across the Southampton area.
The good news? A lot of it is preventable. Here's how I'd approach it, broken down by where you are in the sales process.
Before the Sale: Do Your Homework
The best time to protect your cash flow is before you've agreed to anything. A few simple checks upfront can save you a world of trouble later.
For new customers, take a look at their social media presence and pull their accounts from Companies House. It's free and takes two minutes. Ask for references, and for larger orders, request a copy of their latest management figures. A balance sheet will usually tell you quickly whether they're in a solid position financially. For anything significant, run a proper credit check through Credit Safe or a similar provider.
That said, don't ignore your instincts either. If something feels off about a potential customer, it probably is.
Equally important: get your payment terms written down clearly before anything is agreed. State the due date, acceptable payment methods, and include a late payment clause, such as 5% interest per month. If a client pushes back on this, a simple response works well: "Do you plan on paying me late? If not, this clause won't affect you." It tends to stop the objection in its tracks.
After the Sale: Don't Let Momentum Slip
You've made the sale. Now keep the process tight.
Send your invoice as quickly as possible, and ideally before the end of the month. This matters more than people realise. Many businesses pay at the end of the following month, so an invoice sent on the 1st could sit for nearly 60 days before it's settled. Get it out early.
Follow up with a friendly reminder a few days before the due date. This isn't being pushy; it's good practice, and it gives the client a chance to flag any issues with the invoice before it becomes a problem. Send regular account statements too, so there's never any question about what's outstanding.
If you need cash quickly, consider offering a small early payment discount. Just make sure it makes sense for your margins and that you don't have a cheaper financing option sitting unused.
On the admin side, invest in accounting software that handles invoicing and reminders automatically, or delegate it to someone in your team who will actually stay on top of it. This is your money sitting in someone else's account. Treat it that way.
After the Due Date: Time to Apply Some Pressure
The payment date has passed, and nothing's come through. Here's the reality: in most cases, it's not that your client can't pay you. It's that they're choosing to pay someone else first. The businesses that chase consistently tend to get paid first.
Stay professional throughout, but be persistent. Keep a log of every call, noting who you spoke to, when, and what was said. This protects you and keeps the process disciplined.
If you included a late payment clause in your terms, now is the time to use it. Send the interest invoice. Yes, you may get an irritated phone call. That's fine. You can always waive the interest once they settle the original amount, but the fact that the debt is growing tends to focus minds considerably.
If things are still going nowhere, bring in a professional debt collection firm or a solicitor. Many will recover their fees directly from the debtor, so the cost to you can be minimal. It also sends a clear signal that you take this seriously. A good collection agent can take things all the way to court if needed, but in my experience, most clients pay up well before it gets to that point.
The Bigger Picture
Debt recovery isn't about being aggressive or damaging relationships. It's about running your business properly. The clients worth keeping will respect a business that has clear processes and holds firm on its terms. The ones who don't were probably going to be a problem regardless.
Get the foundations right before the sale, stay on top of your invoicing afterwards, and don't be afraid to escalate when you need to. Your cash flow depends on it.
If you'd like to talk through how to tighten up your credit control processes, feel free to get in touch. It's one of those areas where a few small changes can make a significant difference quite quickly.
Action House, 1 Coopers Close, Romsey, Southampton SO51 6AZ
tel:02380560833 kevinstansfield@actioncoach.com