Cashflow is the lifeblood of any small business, but especially for creative businesses that often deal with project-based or ‘lumpy’ income. Late payments can create a domino effect of stress, unpaid bills, and sleepless nights.
In the UK, we have a particular knack for paying late. According to the Federation of Small Businesses (FSB), 52% of small business owners reported late payment issues in 2022, with 1 in 4 seeing the problem increase. For those working in the arts and creative sectors (already hit hard by economic shocks) late payment can literally be the difference between staying afloat or shutting up shop.
So what can you do when a client delays payment? And more importantly, how can you set up your systems to avoid the problem in the first place?
Let’s start with what to do when the invoice is overdue.
What to Do When a Client Hasn’t Paid
First, assume good intent and send a polite reminder. Most late payments happen because someone is overwhelmed, disorganised, or forgot. (We’ve all been there, especially when juggling five jobs and a looming deadline.)
Still no payment?
Follow up with a firm but professional message that:
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references the due date and amount
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outlines any late payment charges agreed in your terms
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offers a new, short deadline for payment
At this point, 9 out of 10 clients will pay, especially if you’ve kept things polite but clear. But if the silence continues…
Last Resorts: When You May Need to Walk Away
Unfortunately, there are times when you’ll need to escalate:
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Ask a solicitor to send a formal demand
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File a claim via the Small Claims Court
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Engage a reputable debt collection agency
But let’s be honest: none of these options are appealing. They’re time-consuming, stressful, and almost always signal the end of the client relationship.
That’s why your best strategy is prevention. Here’s how.
7 Proven Tips to Get Your Invoices Paid On Time
1. Do your research
Before signing a new client, try to get a feel for their reputation. Ask around, run a credit check if appropriate, and speak to the person who handles payments. A friendly working relationship can make all the difference when it comes to getting paid.
2. Agree clear payment terms up front
Set expectations early – in writing. Make sure your contract or agreement clearly spells out:
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When invoices will be issued
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Payment deadlines
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Late payment charges (if applicable)
This avoids awkward conversations later.
3. Request a deposit or up-front payment
For project-based work or new clients, ask for part payment before you start. It’s a normal business practice – not a trust issue.
4. Make it ridiculously easy to pay you
Use cloud-based accounting software (like Xero) that lets clients pay with a click. Fewer barriers = faster payments. Most of our clients use Xero, and we love how seamless it makes the process.
5. Switch to Direct Debit
Tools like GoCardless integrate with Xero and let clients set up direct debit payments easily. It reduces admin and makes recurring invoices predictable, for both sides.
6. Invoice promptly and consistently
Don’t delay sending your invoice. Issue it:
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As soon as work is complete
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On agreed milestones
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Or at regular intervals (weekly/monthly)
Late invoices = late payments. Accounting software can automate this too, so it’s not on your to-do list at 10pm.
7. Schedule polite reminders (and let apps do the chasing)
Use Xero or apps like Chaser to send gentle nudges when invoices are coming due or overdue. Automation keeps things professional and removes the emotional drain of chasing payments manually.
Automate, Simplify, and Take the Stress Out of Getting Paid
The more of your payment process you can automate, the less time you’ll spend chasing invoices, and the fewer relationships you’ll strain in the process.
We help creative businesses set up systems that:
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Reduce admin
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Improve cashflow
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Make late payment rare
Sound good? Let’s talk about how we can help you get paid on time — every time.
Further Resources
For more information about late payment charges and debt recovery, visit:
UK Government Guidance on Charging Interest and Debt Recovery