How to reduce late invoice payments

You're busy enough without having to chase late invoice payments.

Sometimes customers forget, other times they may delay. Whatever the reason, overdue invoices mess with your cashflow and your peace of mind.

If you're just starting out or have recently experienced chasing an overdue invoice, we'll help you get paid faster.

In our guide on how to reduce late invoice payments, we'll cover:

• What counts as an overdue invoice?
• Why invoices go unpaid
• How to follow up on an overdue invoice
• Still no payment? Here's what to do next
• How to avoid overdue invoices in future

What counts as an overdue invoice?

An invoice is overdue the day after its due date.

If your payment terms were 30 days and today is day 31, that invoice is overdue.

You don’t have to wait weeks to chase a late payment. In fact, the sooner you follow up, the better your chances of getting paid quickly.

Why invoices go unpaid

There are lots of reasons customers don’t pay on time:

• They forgot
• They lost the invoice
• They're waiting on cash themselves
• Your invoice didn’t include easy ways to pay

The good news? Most late invoices are down to simple mistakes or friction that can be fixed.

How to follow up on an overdue invoice

Start with a gentle reminder. Keep it polite but firm, and include everything the customer needs to pay you quickly.

Here’s what to include in your message:

• A clear subject line (e.g. “Reminder: Invoice #1042 now overdue”)
• The original invoice details (amount, due date, what it’s for)
• A link or button to pay it straight away
• Contact info if they’ve got questions

Pro tip: If you use NabyPay, your customer can easily pay you by bank, card or Apple/Google Pay without any delay. 92% of payments are sent within one day with NabyPay.*

Still no payment? Here's what to do next

If your reminder doesn’t work, try the following steps:

1. Send a second follow-up – This time a little firmer in tone. Let them know the invoice is now X days overdue and you’d appreciate payment as soon as possible.
2. Pick up the phone – Sometimes a quick call gets results faster than another email.
3. Add late fees (if agreed upfront) – You’re legally allowed to charge interest on late commercial payments in the UK. Just make sure you’ve included this in your payment terms.
4. Use a payment app – With NabyPay, you can send invoice reminders and make it even easier to for customers to pay.

How to avoid overdue invoices in future

Do everything you can upfront to save time later. Here’s how to make late payments less likely:

• Offer multiple ways to pay – bank, card, Apple Pay
• Set clear payment terms on every invoice
• Send invoices as soon as the work's done
• Use automated reminders
• Add late payment terms upfront

NabyPay makes all of this easy.