Short answer: Make invoices crystal‑clear, shorten terms on new work, send friendly reminders on day 1, 3, 7, and 14, offer a small early‑pay discount, and give easy payment options. Escalate gently after 30+ days. Aim for predictable cash and strong relationships.
Set the table before you invoice
- Use deposits or milestone billing (especially for new clients or large orders).
- Put clear payment terms on every quote/PO.
Make invoices easy to pay
- Show the due date and how to pay on page one.
- Add card/ACH links (no dead ends). Put a real contact for questions.
“Polite persistence” follow‑up schedule
- Due date: “Thanks—here’s the link to pay.”
- +3 days: “Just checking in—did the invoice reach the right person?”
- +7 days: Re‑send PDF + portal link. Offer to jump on a call.
- +14 days: Ask about blockers; offer partial payment plan.
- +30 days: Firm but friendly escalation per your terms.
Should I offer early‑pay discounts?
Often yes—keep it small (1–2%) and time‑boxed (e.g., “within 10 days”). Run the math: a tiny discount can beat financing costs and speed up cash.
When to tighten terms
For new clients, slow payers, or large orders: require a deposit or move to Net‑15. Pair this post with your broader cash levers in Where Should I Cut or Invest to Free Up Working Capital?
Do this next
- Add payment links to your invoice template.
- Turn on automatic reminders at 1, 3, 7, 14, 30 days.
- Create a deposits policy for new/large jobs (e.g., 30–50%).
- Move chronic late payers to Net‑15 or require a card on file.
Key numbers
- DSO (days to collect): trend down month‑over‑month.
- AR > 30 days: keep under 15% of AR.
- Early‑pay discount cap: usually 1–2%.
Quick, copy‑paste emails
Due date: “Hi [Name]—friendly reminder your invoice [#] is due today. Here’s the link to pay: [link]. Thanks so much—reply with any questions.”
+7 days: “Hi [Name]—re‑attaching invoice [#] as PDF and the portal link: [link]. Happy to jump on a quick call if anything’s off.”
FAQ
Will I lose customers if I tighten terms? Good customers will respect clear, fair terms—especially if you set them up before the work starts. What’s the fastest way to accelerate cash this month? Call the top five overdue accounts, offer partial payments today, and switch new work to deposits + milestone billing. Where can I learn the early warning signs? See How Do I Spot a Cash‑Flow Problem Before It’s Too Late?
Need help? We can run AR workflows and policies for you. Explore Bookkeeping, Controller, and CFO Services.