How to Guide - Getting paid on time.

Getting paid on time or up front is a challenge for micro businesses, especially, unfortunately, when dealing with larger businesses buying your goods and service.

How can we ensure that we get paid on time and that we're safeguarded by any sharp practice or delayed payments because your invoice is perhaps the smallest in their pile?

Here are some top tips to safeguard you and your businesses cashflow.

1. Be very clear on your website what your payment terms are off the bat. Ideallly weave it into your values and 'ways of doing things'. For example, explain that you pay your suppliers within the standard 30 days (or even less) and expect others to pay you the same way. Include clear T&Cs in all correspondence and display on the website too.

2. Don't fear being small. Because 95% of all UK businesses are micro in size, the vast majority of suppliers and service provders are that size too. It's a mis conception that you're a rarity. If large businesses and organisations want to benefit from what you offer then they have to comply with your terms.

3. Contract up front. Alongside T&Cs, it's vital to have a clear contract for all interactions. Use the FSB for good basic templates or perhaps your trade or sector body. Don't fudge the conversation for fear of losing a contract, but rather see it as a way for you to show your professionalism.

4. Don't be shy about the added value they recieve by working with a micro. Be clear in your website and communications that working with you will mean better service, a more personalised interaction and a bespoke offer.

5. Copy all invoices into the person you worked with. Larger businesses will ask you to invoice their finance department which is fine but always always copy in the person who commissioned your work or products. This way, they know that you've invoiced and carry some responsilbility to make sure you're paid on time. It also gives a clear signal to the finance department that this invoice is being watched.

6. Chase quickly. Depending on how 'on the ball' you are about your cashflow and invoices, it's always a good idea to chase an invoice on day 1 of a late payment. Many bookkeeping platforms will do this automatically for you if you set this up. This gives a clear signal that you mean business and that you're going to stick to your T&Cs. By waiting a couple of weeks 'to be helpful', you're really saying that you're very flexible and unlikely to cause a fuss is they use your outstanding invoice to manage cashflow.

Remember that you're not alone so if you have anu issues, head to our Group discussions and ask your fellow members about their practice or contact us for support or signposting.