Turning invoices into cash
For many small businesses, late payment is the main cause of cash pressure. Wages, suppliers and tax bills still have to be paid on time, while customers stretch their terms. Good credit control is not about being aggressive. It is about clear terms, accurate invoices, consistent follow-up and knowing exactly who owes what.
Signs your debtors need attention
- Your aged debtors report includes old balances nobody is sure about.
- Payments are received but not matched to invoices, so customers look like they owe more than they do.
- Reminders go out only when someone remembers.
- Large customers decide their own payment terms.
- Your bank balance feels tight even though sales are strong.
How we help
- Clean up the aged debtors. We reconcile the sales ledger, match payments and credit notes, and flag balances that are actually overdue, disputed or unlikely to be recovered. Where there are many unallocated payments, we sort those out first.
- Review your terms. We look at your payment terms, how they are communicated in quotes, contracts and invoices, and whether deposits or staged billing would help.
- Set up a reminder routine. Using your accounting software's automated reminders where available, we design a schedule of polite, escalating messages and a clear point at which a phone call or stronger action follows.
- Regular reporting. We include debtor days and a short overdue list in your monthly reporting so it stays on the agenda.
- Bad debts. Where a debt cannot be recovered, we deal with the accounting write-off and, if you are VAT registered, consider whether bad debt relief may apply.
Late payment legislation in brief
Business-to-business customers who pay late can be charged statutory interest under late payment legislation, which is currently set at 8% plus the Bank of England base rate, unless your contract sets a different rate. You may also be able to claim a fixed sum for debt recovery costs, which depends on the size of the debt. Where no payment date is agreed, the legislation sets default periods. The GOV.UK guide to late commercial payments explains the rules. Whether to use these rights is a commercial decision, and for disputed debts or court action you should speak to a solicitor; we focus on the records, process and figures.
What we'll need from you
Access to your accounting software via its accountant invitation, your standard terms and conditions, examples of invoices and reminders, and a note of any disputes or special arrangements with customers.
Credit control for Kent businesses
We help trades, wholesalers, agencies and service businesses across Kent, including firms in Maidstone, Dartford and Ashford, get paid more reliably. Better debtor management feeds straight into your cash flow forecast and day-to-day bookkeeping. Send us a message and we will start with a review of your aged debtors.
Frequently asked questions
What should go into my payment terms?
State the payment period clearly, such as 14 or 30 days from invoice date, how customers should pay, and what happens if payment is late. Put the terms in your quotes or contracts as well as on invoices, so customers agree to them before work starts. Deposits or staged payments can help on larger jobs.
Can I charge interest on late invoices?
For business-to-business sales, late payment legislation lets you charge statutory interest and claim fixed debt recovery costs, unless your contract sets other terms. Many businesses choose to mention these rights in their terms as a deterrent. The rules do not apply in the same way to sales to consumers.
Will you chase my customers for me?
Our focus is on getting your ledger accurate, setting up an effective reminder process and reporting on overdue balances, so your own team can follow up with confidence. For persistent or disputed debts we may suggest a debt collection agency or a solicitor, depending on the amount and circumstances.
What happens to debts that will never be paid?
They should be written off in the accounts so your profit and debtor balance are realistic, and the reasons documented. If you are VAT registered and paid VAT on the sale, you may be able to reclaim it under bad debt relief once the relevant conditions are met. We check this as part of the write-off.
Credit Control and Debtor Management across Kent
We help clients throughout the county, including: