How to Get Invoices Paid Faster

Drew Robertson

on Mar 4, 2025

QUICK SUMMARY

My in-depth guide offers simple tips to get paid faster, like clear terms, automated reminders, and flexible payment options—plus smart strategies to improve cash flow.

TABLE OF CONTENTS 6 Steps To Get Paid Faster Enforcing Late Fees When To Apply Late Fees Late Fee Limitations Going Further: Ensuring Efficient Management of Receivables

Key Takeaways

The Clearer, The Better: Clear invoices and communication with your clients goes a long way. Make sure to outline your late fee terms and pricing in your invoice, and reach out to your clients when payments are late.

Maintain Professionalism: When you need to enforce late fees, always keep things professional. Not only does this signal that your value, but it also lays boundaries without burning bridges.

AR Software Can Go A Long Way: To help streamline your finances, consider using an AR software. These solutions can improve processes and get you paid on time, while maintaining client relationships.

From pending bills to unpaid wages, nothing affects business growth like poor cash flow due to late payments. Ironically, your chances of experiencing them increase with a larger customer base.

Even worse—I’ve learned that the longer an invoice stays unpaid, the less likely it is to get paid.

As a financial controller with years of experience overseeing operations, I have seen countless business owners, contractors, and freelancers struggle to stay afloat because they don’t get paid on time.

But you can avoid this all-too-common scenario by implementing my 5-step process for getting invoices paid faster, while remaining professional and keeping good relationships with your clients.

6 Steps for Getting Invoices Paid Faster

On-time payments are the oil your business’s engine needs and with the following steps, you can stock up enough for the road. Here’s my quick tips for getting faster payments, or even just simply, on time.

1. Determine Payment Options Before Starting Your Project

Commentary on contracts probably isn’t the advanced invoicing strategy you were looking for—but before you skip this part, hear me out.

Prior to working with a client, it’s important to define terms and seal them with a contract.

Why? Because a contract legally binds you and the client to specific obligations, significantly limiting your chances of experiencing late payments or unpaid invoices.

To draft a good contract, avoid invoice disputes, and get paid on time:

Agree on a full or deposit payment upfront. These payment options help you secure all or at least some of your billed amount beforehand. Imagine getting a 50% deposit before starting a new client project. Not only does it show commitment from the client, it can also help cover initial implementation costs.
Explore milestone payments. Milestone payments help you get paid progressively as you complete different project stages or deliver products at predefined intervals. For example, you could split the payment for a long-term project on a milestone basis—like 30% upfront, 40% midway, and 30% on completion. This approach drives steady cash flow and reduces your risk.
Define net payment terms and late fees. Net payment terms define the timeline within which an invoice is due. For example, net 30 means an invoice is due within 30 days of its issuance so the customer has ample time to pay. This approach, coupled with late fees, show clients the urgency of your invoice and prompt them to pay before time runs out.
Consider retainer agreements. Retainer agreements obligate clients to pay you a fixed amount at intervals, usually monthly, before delivering any services for the billing period. Like milestone payments, it ensures that money keeps rolling in as you work, making it a perfect option for long-term projects.

2. Build Clear, Concise Invoices

Unclear or inaccurate invoices can delay processing and lead to missed payment deadlines.

For example, a client may need to contact you to clarify some abbreviated words or unfamiliar items in the invoice. Now imagine it takes you a day or more to close out the conversation and move forward. The whole back and forth simply gives the client an easy excuse to push payments down their priority list.

Avoid this and similar scenarios by ensuring your invoices have:

Your business name, contact information, and tax information
A clear breakdown of services/products provided
The exact amount each item costs
Any applicable discounts and tax obligations (e.g. VAT)
The total amount to be paid
The invoice due date
The payment methods you accept and your bank account information (bank transfer, credit card, online payment portals, etc.)
Additional notes as needed (i.e. late fee charges and penalties in percentage)

Also, don’t bury the invoice due date in small print. Instead, put it at the top or near the total payment amount so it’s easy to spot. And of course, use consistent invoice templates and formatting to avoid miscommunication or confusion.

Here’s an example of how you can structure your invoice:

3. Automate Your Processes

If you’re still mailing invoices or handing them out physically, you’re making it harder for you to get paid on time. Paper invoices get lost, email attachments get buried, and busy clients forget. Automation removes these obstacles by simplifying and streamlining the entire online invoicing process.

So, skip the manual work and use invoicing or billing software to:

Auto-generate invoices with pre-set templates
Schedule recurring invoices for repeat or retainer clients
Send automated invoice reminder emails before and after due dates
Offer multiple payment methods so clients can pay conveniently

Take cloud-based apps like FreshBooks or QuickBooks. They’re a boon for both you and your clients as they make the automated payment process more flexible and encourage faster remittance.

4. Invoice as Quickly as Possible—Starting Now

If your client has a set billing cycle (which most standard businesses do), sending a professional invoice even just a few days late can delay payment by weeks or months. Say a customer typically pays all invoices on the 31st of each month. Even if your invoice comes in on the 1st of the next month, chances that you’ll get paid before the next payment day are quite low.

The lesson? The sooner you send an invoice, the earlier you can get paid.

Also, make sure to invoice on time—either as soon as you complete a project or reach a predefined milestone. This helps to:

Show professionalism
Keep your payment top of mind
Reduce the chances of your invoice falling through the cracks

5. Maintain a Regular Schedule for Payment

Whether you bill upon project completion, weekly, or monthly, a regular schedule sets client expectations accordingly with a regular payment schedule. This not only helps you, but also helps your client prepare for your invoices on time.

Author's Tip

A regular payment schedule aids cash flow stability, vendor trust, and financial forecasting. And without it, even a profitable business can run into liquidity issues real quick.

Having a regular payment schedule goes hand-in-hand with sending invoices quickly and automation because automatic invoicing lets you bill customers, send payment reminders, and get status updates on autopilot.

Your days of manually following up on delayed payments and checking if a client has paid will become ancient history. And most importantly, you’ll never have to worry about forgetting to send an invoice on schedule.

6. Keep in Touch With Your Clients

A good client relationship limits late payments and makes recovery much easier when necessary. The reason is simple—a client who trusts you is less likely to ignore your invoice or overdue payment reminder.

So, build great rapport and trust with your customers by keeping them in the loop at all times. Position yourself as a growth partner instead of just another supplier or provider and watch how customers start prioritizing your invoices.

Seriously. Even simple gestures like responding to queries on time or sending real-time updates when there are issues can make all the difference. While these actions aren’t compulsory, they show intentionality and consideration, effectively keeping your brand top of mind and in the client’s good books.

And, if an invoice payment does get delayed, it is less awkward to follow up with someone you already have a great relationship with.

Looking for other ways to keep in touch with clients and maintain a healthy work relationship? Here are three more:

Establish more than one communication channel. From email to phone calls, text messages, or Slack channels. Just make sure it’s not only one way a client can reach you when they’re in need.
Assign a dedicated account manager or contact person. This technique ensures communication consistency, avoids information gaps, and saves the time needed to get a different business rep up to speed about a client. Providing ongoing support to customers like this can get tricky if the rep stops working with you. But, it’s mostly worth the risk, especially for big-ticket clients who appreciate white-glove treatment.
Incentivize customers. If a client buys in bulk from you or is a repeat customer, encourage them to keep coming back using incentives. It could be anything from offering loyalty or early payment discounts to free delivery or installation, warranty-covered repairs, complimentary gifts, and more—whatever works for your business.

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Enforcing Late Fees: When, Why, and How

I touched on late payment fees earlier in this article, but let’s take a closer look at what they are and how they can help you get paid faster.

Overall, late payment fees are a way to discourage customers from leaving invoices unpaid for too long. And while they’re designed to support timely and steady cash flow, enforcing late payment fees too harshly can damage relationships and cost you even the best clients. Find the sweet spot between firmness and diplomacy and stay there.

Author's Tip

You can calculate late fees either as a flat-rate, percentage-based, or a hybrid of both.

Flat-Rate Fee: A fixed amount per past due invoice (e.g. $25 per late invoice)
Percentage-Based Fee: A percentage of the unpaid amount (e.g. 1.5% per month)
Hybrid: A combination of a flat rate and a percentage-based fee, like with incremental enforcement (as explained earlier)

Say a client owes $4,500 and misses the deadline. If your late fee is 1.5% monthly, it would amount to $67.50/month.

For larger invoices, percentage-based fees are more fair while flat fees are easier to manage for smaller transactions.

Timing: When Do Late Fees Apply?

Late fees can apply immediately if an invoice is overdue or after the extra grace period you extend elapses. You can also explore incremental enforcement—it’s your call.

Grace Period: Most contributors give 5-10 days to allow for minor delays while keeping goodwill. You can send a polite reminder on day 3 or 5 before applying penalties.
Clear Deadlines: Set strict but reasonable terms. If your invoices say “Net 30”, your clients should pay within 30 days—or face late fees.
Incremental Enforcement: Start with a warning, then apply small penalties that increase over time. Here’s a template you can try:
- Day 5: Friendly reminder, no fee
- Day 10: Second notice, $25 fee
- Day 20: Final notice, percentage fee (e.g. 1% monthly)

Whatever you decide, the most important thing is to ensure that every invoice you send clearly states your payment terms. This way, clients know exactly when a prompt payment is due as well as when or if a late fee will be applied. At the end of the day, your goal is to try and get paid without having to take punitive action right away (or at all).

In your first reminder after a payment becomes overdue, you can also extend an extra grace period, say 3 or 5 more days. This courtesy gives room for minor delays while preserving your goodwill with the customer.

After the grace period is up, send an updated invoice with the late fee. Make sure to emphasize the invoice’s original balance, late fee amount, total, and due date. This labelling will avoid any confusion and clarify any grey areas.

Legal Considerations: Are There Limits on Late Fees?

Not all businesses can charge whatever they want for late fees. For example, some regions cap late charges, though they typically fall between 1% to 15% per month in most places. Make sure to check your state and local laws before implementing late fees.

Going Further: Ensuring Efficient Management of Receivables

Looking for more tips? Outside of invoicing, here are some other strategies to help ensure the efficient management of receivables.

1. Offer Flexible Payment Options

Giving clients flexible payment options—like installment plans, multiple transaction methods, store credit and wallet balances, or retainership fees—make it easier for them to pay you on time.

Say you run a service-based business with long-term customers on a retainership contract. Recurring billing is a great way to get timely payments and maintain consistent financial flow. With the right invoicing software, you can even access an autopay feature that lets clients pay once your invoice is due.

2. Measure the Right AR Metrics

Account receivables key performance indicators (KPIs) help you see how good—or bad—your cash inflow is. Here are the top AR metrics I always advise both large and small businesses to keep in check:

DSO (Days Sales Outstanding): The number of days it takes for you to get paid on average. The lower this metric is, the better.
Accounts Receivable Turnover Ratio: This metric shows how fast you turn outstanding invoices into cash. It shows the true state of your AR management and measured by dividing net credit sales by average accounts receivable over a specific period.
ADD (Average Days Delinquent): The average number of days between your invoice due dates and when clients pay you. ADD helps you analyze patterns of late payment among individual clients so you can take appropriate action—whether that’s changing payment terms, limiting order volumes, blacklisting, or whatever works really.

AP automation software like Payouts, Procurify, and Centime are great tools for measuring these metrics, reducing errors, and optimizing the overall process.

3. Set Credit and Collection Policies

With clear credit and collection policies, you can rest assured that your AR engine will move as smoothly as can be.

From credit limits to payment deadlines, proactive and reactive reminders, and more—these policies help you reduce overdue payments and boost your business’s financial stability.

4. Outsource AR Management

If you can afford the extra expense, outsourcing AR management is another way to beat inefficiency. Note though that this approach is relatively expensive. It also gives you less control over client interactions.

Don’t want to outsource? DIY your accounts receivable management by investing in a good AR automation software. The ideal tool will help you save money while staying on top of critical customer relationships. Take a look at some of my top options to help you get started:

No one wants to lose a client over invoicing complications—but getting paid on time is just as important. The key is structuring your payment process to minimize friction while maintaining strong client relationships.

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