How to get paid on time: Top tips for consultants and agencies

The cost of silence: Why payments get delayed

Before tackling solutions, it’s vital to recognise the common friction points:

• Vague terms: The client wasn't clear on the exact due date, penalties, or accepted payment methods.

• The 'finance department' delay: Invoices are often sent to a project manager who then forgets to forward them to the correct Accounts Payable contact.

• The invoicing lag: Delaying the invoice by a week means delaying the payment by a week.

• The friction of payment: If a client has to call, search for bank details, or post a cheque, they will put it off.

Proactive strategies: How to guarantee payment before work starts

Cash flow starts with the contract. Use these tips to establish clear expectations from day one.

1. Define and enforce clear payment terms: Make sure your client is clear on every financial detail right from the start. This should be explicitly stated in the contract and repeated on every invoice.

• Set short terms: Don't default to 'Net 30' (payment due in 30 days). Ask for 'Net 14' (14 days) or 'Due Upon Receipt'.

• Detail penalties: Clearly state any consequences for late payment. You can legally charge statutory interest (Bank of England base rate + 8%) on commercial debt, but even a smaller, consistent late fee (e.g., 1.5% per month) is a strong deterrent.

• Request a deposit: For projects over a certain value (e.g., £2,000), require a deposit (25–50%) upfront. This secures their commitment, covers your initial outlay, and smooths your cash flow.

Tip: Ask the client who handles their invoices and get that person's direct contact details upfront. Send all invoices there, with your day-to-day contact copied in.

2. Structure projects for phased payments For large or long-term contracts, avoid waiting until the end. Tie payments to specific, agreed-upon milestones or use a monthly retainer.

Tip: If the project is delayed, your client still pays on time because payment is tied to the deliverable date, not the total project completion date.

Streamlining the invoicing and payment process

A professional, easy-to-read invoice is crucial. Automation is the key to preventing delays.

3. Invoice immediately and accurately A perfectly drafted invoice reduces excuses for delays or rejection by the Accounts Payable team.

• Use professional software: Always use accounting or invoicing software (like Xero or QuickBooks) to generate consistent, professional invoices.

• Be detailed: Itemise the services, dates, and rates. For time-based work, include a breakdown of the hours logged.

• Send promptly: Invoice immediately upon deposit receipt, milestone completion, or end of the billing cycle. Never wait until the end of the month if a milestone is hit on the 10th.

Tip: If you include a friendly line like, "We were happy to include a complimentary two hours of consultation time on this invoice," it demonstrates value and can incentivise promptness.

4. Make it effortless to pay you: The easier you make payment, the less likely the client is to procrastinate. Offer multiple, low-friction options.

Tip: Embed a "Pay Now" link directly into the electronic invoice that allows them to pay instantly via card or bank transfer (where supported).

The ultimate solution: Automate the follow-up

Chasing late payments should never rely on your memory or willingness to have an awkward conversation.

5. Automate payment reminders: Set up a consistent schedule of reminders that are polite but firm.

• Before the due date: Send a friendly "Courtesy Reminder" three–five days before the due date ("Just a quick note that Invoice #123 is due on Friday!").

• On the due date: Send a "Payment Due Today" email.

• After the due date: Follow a structured escalation schedule (e.g., day one, day seven, day 14, day 30).

Tip: Automate this process using your accounting software. Services often allow you to write and schedule these email sequences in advance, maintaining consistency and saving your team valuable time.

6. Talk to the right person If a payment is overdue, stop relying solely on email.

• Pick up the phone: After the first week of being overdue, call the Accounts Payable contact. Be polite and professional, asking if there's an administrative hold-up or error you can help resolve.

• Escalate internally: If necessary, politely loop in your main client contact/project manager, reminding them that payment delays will halt the next phase of work. Use simple, factual language: "I'm checking in on Invoice #123. Can you confirm with your finance team that it's been processed? We need to receive payment to begin work on [Next Milestone]."

Tip: Never start a new phase of work for a client who has a severely overdue invoice. Using the outstanding payment as a firm boundary is your ultimate leverage.

Can automation help you minimise late payments?

While reminders help, the most powerful tool for agencies and consultants is automated payment collection using Direct Debit.

With Direct Debit, the customer authorises the payment once, and the funds are automatically collected on the agreed-upon date. This takes the responsibility of remembering and initiating payment away from the client and transfers control to your business.

This level of automation can dramatically reduce debtor days—the time it takes you to get paid—allowing you to confidently grow your agency or consultancy without the fear of crippling cash flow gaps.

For consultants, agencies or anyone who freelances, getting paid on time is critical. GoCardless helps you achieve this efficiently. With Instant Bank Pay, you can receive one-off payments in as little as one business day, improving your cash flow significantly. For retainers, our Direct Debit system automates collections, often saving businesses 90% less time on payment management and reconciliation, freeing you to focus on client work.

Source: IDC, The Business Value of The GoCardless Platform for Recurring Payments, 2020