For many small businesses, chasing unpaid invoices is an uncomfortable but necessary part of trading. The challenge is maintaining positive relationships with customers while ensuring money arrives on time. Late payments can quickly put pressure on cash flow. A clear process, consistent communication and the right tools can make the difference between a manageable issue and a serious financial strain. Clear policy from the outset A written credit control policy sets expectations for everyone involved. It should outline payment terms, when reminders will be issued and what happens if an invoice remains unpaid. Including these terms within contracts or engagement letters ensures customers understand the process before work begins. Early communication often prevents problems escalating. A brief call before an invoice falls due can confirm it has been received and check for queries. If payment has not arrived shortly after the due date, a follow-up call should establish when it can be expected. At this stage, the tone should remain measured, but clear that payment terms are taken seriously. Using financial reports to spot problems early Regular review of key reports helps businesses stay in control. An Aged Debt report shows which invoices are outstanding and for how long. It highlights patterns and identifies customers who are beginning to fall behind, allowing timely intervention. Days Sales Outstanding, or DSO, measures the average number of days it takes to receive payment. A rising figure may indicate that credit control procedures need tightening. For small firms in particular, understanding these metrics supports better cash flow forecasting. Most accounting software generates these reports automatically, though an accountant can assist if needed. Automated reminders reduce friction Simple payment terms, such as 30 days from invoice date, allow reminders to be scheduled in advance. Automated emails sent shortly before and after the due date can prompt payment without the need for repeated manual follow-up. This keeps the message consistent and removes emotion from the process. Making payment straightforward Delays are sometimes caused by inconvenience rather than unwillingness to pay. Offering multiple payment options can remove barriers. Direct debit services such as GoCardless allow payments to be collected automatically on the due date and can integrate with accounting software. Online payment platforms including PayPal and Stripe enable customers to pay by card, which can be particularly useful for international transactions. For ongoing services, businesses may require customers to agree to automatic payment arrangements as part of their terms. This reduces the risk of oversight. Escalation when necessary If payment remains outstanding after reminders and calls, a formal letter should restate the original terms and provide a clear deadline. The language need not be aggressive, but it should confirm that further action may follow. Some businesses choose to appoint a debt collection agency once an invoice reaches a certain age. If this forms part of the credit policy, customers should be made aware from the outset. Transparency helps avoid disputes later. Setting expectations early Ultimately, effective debt management begins before work starts. Clear payment terms, agreed in writing, reduce misunderstanding. For larger projects, requesting a deposit or staged payments can limit exposure.  While most customers intend to pay on time, consistent systems protect the business when they do not. For small firms operating on tight margins, disciplined credit control is not simply administrative good practice. It is essential to financial stability. If you would like to strengthen your credit control process and improve cash flow, we would be happy to help. Call us on 01904 787 973 or book a call with our team .

Referrals are often described as the lifeblood of a business. That may sound like a cliché, but for many firms it is the truth. A referred customer often arrives with trust already in place. They are more likely to listen, more likely to buy and more likely to stay. Yet most businesses treat referrals as something that either happens or it doesn’t. In reality, referrals are almost never accidental. From our experience, they are the result of clear positioning and consistent follow-up. So here are some practical steps you can take to make referrals a steady and reliable part of your growth. Be clear about who you help One of the biggest barriers to referrals is vagueness. If someone asked your customer, “Who would you recommend?”, would they know exactly who to suggest? Instead of describing your business in broad terms, be specific. For example: “We design websites for independent cafés and restaurants.” “We help tradespeople move from sole trader to limited company.” “We work with e-commerce brands to help them sell more online.” When people understand precisely who you are best suited to, it becomes easier for them to think of someone. Ask at the right time Timing makes a huge difference. The most natural moment to ask for a referral is just after you have delivered something of value. Ideally, something that as really blown their metaphorical socks off! That might be when a project finishes successfully, when a customer gives positive feedback or when you solve their problem quickly. A simple sentence is often enough, “If you know any other business owners like you who are struggling with this, I would really appreciate an introduction” or if you wanted to be even more direct, “Is there anyone you know who you think might benefit from our services as well?” Stay visible Referrals often come down to how often you cross someone’s mind. If clients only hear from you when you send an invoice, you are easy to forget. Sharing a short client update email, commenting on their LinkedIn posts, sending a relevant article when you spot one, or arranging a brief catch-up call will keep you at the front of their mind. You are not asking for a referral every time, but you are reminding your clients what you do and that you do it well. Top tip: Put a reminder in your diary to contact your best clients once a quarter, even if it is just to say hi or to see how they’re doing. Avoid sounding overwhelmed Many business owners answer, “How’s business?” with “We’re so busy.” While that may be true, it can unfortunately discourage referrals. If people believe you do not have capacity, they are unlikely to introduce you to others. A better response might be that things are going well, and you are always keen to speak with the right type of client. And remember, referrals work both ways. When you actively introduce your clients to useful contacts, they are far more inclined to return the favour. It is a simple principle, but one that is often overlooked. Track where new work comes from Finally, measure it. Ask every new customer how they heard about you and keep a record. Over time, patterns appear. You may find that a handful of loyal customers account for a significant proportion of your introductions. Those relationships are worth nurturing. When someone does refer you, acknowledge it properly. A handwritten thank you card, a small gift or even a personal message expressing genuine appreciation goes a long way. This extra effort reinforces the relationship and makes future referrals far more likely. How we can help We hope you have found this useful. If you have any questions about strengthening your business or would like to talk through your plans, we are always happy to help. To find out how we can work together, call us on 01904 787 973 or book a call with our team .