How to ensure invoices are paid on time?
Even the best payment terms are only effective if your customers follow them. Fortunately, there’s a lot you can do to reduce the risk of late payments. With clear agreements, smart follow-up, and the right tools, you stay in control of your accounts receivable.
Set clear payment terms
Start with the basics. Every invoice should clearly state:
- The payment due date (e.g., “Due within 14 days of the invoice date”)
- What happens if payment is late (interest, late fees)
- Accepted payment methods
Be sure to communicate these terms upfront in your quote or contract. This helps prevent misunderstandings and disputes later.
Schedule automatic reminders and follow-ups
Many businesses wait too long to send reminders, which leads to unnecessary delays. Timely, consistent follow-ups significantly improve the chance of getting paid. A typical follow-up sequence includes:
- A friendly reminder shortly after the due date
- A more formal notice a few days later
- A final warning before taking further action
By automating this process, you ensure consistency while reducing manual work.
Use accounts receivable software like Payt
If you’re sending many invoices, tracking payments manually becomes a burden. With accounts receivable software like Payt, you streamline the entire follow-up process:
- Set automatic reminders and late notices based on your schedule
- Let customers reply directly or request a payment plan
- Get real-time insights into who has paid and who hasn’t
Example: You send an invoice on the 1st of the month. Payt automatically sends a reminder on the 14th, a late notice on the 21st—without you lifting a finger. You control the tone, timing, and order of communication.