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The practical steps
Invoice the moment work is done, not at month-end. Set clear terms (14 or 30 days) and state them on every invoice. Chase before the due date with a polite reminder, then follow a set escalation. Make paying frictionless — bank details and a payment link on the invoice. Run it all from a credit-control checklist so nothing slips.
What this means for your company
Reducing debtor days shortens the cash conversion cycle and shrinks the working capital you need to carry. Measure the effect and know your rights on late payment — you can charge statutory interest. Where customers are structurally slow, invoice finance advances the cash while you keep collecting. See how to chase without losing the customer.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Can I charge interest on late payments?
Yes. Under UK law you can charge statutory interest (8% above the Bank of England base rate) plus a fixed recovery fee on overdue commercial invoices. Even stating the right to do so on invoices encourages prompt payment.
Should I offer early-payment discounts?
They can work, but they cost margin. Model whether the discount is cheaper than the cost of the cash gap it fills — sometimes a short facility is cheaper than a standing discount. Use the early-payment-discount calculator to check.
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Read →Funding for UK limited companies
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