How to ensure you get paid faster

One of the real challenges for small business is ensuring they get paid faster. We had a quick look at this in Get better with Cashflow which we wrote in February. In this article we go a lot deeper into the various things that you can do to get paid faster.

Let’s go through them in detail.

1. Re-set the rules of engagement

We see a lot of focus on terms of engagement with new clients. Remember that it’s okay to go back to established clients and re-set the terms or rules of engagement. A great idea is to do this annually.

Look to include payment terms and late fees for overdue invoices. You may also want to offer discounts for pre-payment or early payment, and be clear about the processes for debt resolution.

2. Keep the workflow moving faster

If your work is simple and fast then invoice as soon as it’s done. If your work has milestones or multiple stakeholder approvals, consider sending progress invoices.

3. Optimize Your Invoicing Process

Look to shorten payment terms from the traditional Net 30 days to Net 7 or Net 14. Research shows that 7-day terms are typically paid within two weeks, whereas 30-day terms often stretch to over a month.

Take advantage of compliance. For sales over $82.50 (including GST), GST-registered businesses must provide a valid ‘Tax Invoice’ containing your ABN and the GST amount. Missing details are a common excuse for payment delays.

Include specific due dates. Instead of ‘Payable in 30 days,’ state a clear date like ‘Due by 15 April 2026’ to remove ambiguity.

4. Use Automation and Technology

Automated reminders make life easy. Use accounting software like Xero, MYOB, or QuickBooks to automatically send polite nudges 3, 7, and 14 days after a due date.

Pay Now Buttons embed directly into payment links in digital invoices are a great idea. Platforms like Stripe, Square, and B2Bpay allow customers to pay instantly via credit card or digital wallets.

Adopt eInvoicing to send invoices directly between accounting systems, reducing manual entry errors and speeding up processing times.

5. Financial Incentives and Policies

Request an upfront deposit before work begins, especially for new clients or large projects.

Offer an early payment discount, such as a 2% discount, if the invoice is settled within 10 days.

Explicitly state late payment penalties in your initial contract to encourage on-time settlement.

6. Outsource funding or collection

Sometimes clients and customers just aren’t great payers. You can look to outsource the collection of invoices to a debtor finance business. The funding provider will pay your invoice straight away, and then they receive regular repayments from your client. But be aware that if your client defaults, the risk is with you.

7. Manage Client Relationships

Before extending credit verify new clients by checking the Australian Business Register to confirm a valid ABN or perform a credit check through ASIC.

In larger organisations identify the payer and send the invoice directly to the accounts payable department rather than just your day to day contact.

Use the Payment Times Reports Register to check the average payment speeds of large Australian corporations ($100M+ turnover) before signing contracts.

There we go, 7 things to ensure you get paid faster. If you have any questions please contact me paul@congdonfuzi.com.au