Invoicing and getting paid

Profit on paper does not pay rent. Getting paid, on time, is a skill as important as the work itself.

What an invoice must contain

A unique invoice number, your business name and address, your tax registration numbers where relevant, the client's details, a clear description of the work, the date, the amount, any tax charged shown separately, the payment terms, and your payment details. Missing information is the most common excuse for delay - and large organisations will often reject an invoice without a purchase order number.

Terms that protect your cash flow

• Invoice immediately. Every day you wait is added to the payment clock.
• Set short terms. 14 days is normal for small suppliers; 30 is standard; 60 should be negotiated, not accepted silently.
• Take a deposit for new clients or large projects - commonly 25-50% before work starts, with staged payments on longer jobs.
• State late payment interest in your terms and be willing to apply it.

Chasing without drama

Have a fixed process and follow it unemotionally: a polite reminder the day after the due date, a firmer one a week later, a phone call at two weeks, then a formal demand. Most late payment is administrative rather than malicious - your invoice is sitting in someone's queue, and the person who follows up gets paid first.

Escalation routes exist if it goes further: statutory interest, formal letters before action, mediation and small claims processes. Knowing they exist changes how you write the first reminder.

Build a buffer

Because income is irregular, aim for a larger cash cushion than an employee needs - three to six months of business and personal essentials. It converts a late-paying client from a crisis into an annoyance, and it is what lets you decline bad work.