Late payment has a way of turning a profitable sale into a cashflow problem. A business can complete the work, pay its staff and suppliers, and account for the tax all before the customer settles the invoice. It's a bigger issue than many owners realise: late payments cost the UK economy almost £11 billion a year, and an estimated 14,000 businesses close annually because of them.

What's less well known is that businesses already have statutory rights here. You can charge interest on overdue commercial debts — currently 11.75% a year — plus fixed compensation on top, simply for having to chase the money you're owed. And with the Commercial Payments Bill progressing through Parliament, mandatory late-payment interest and a firm 60-day maximum payment period could be on the way.

But the real protection starts earlier than most people think before an invoice is even raised. Credit checks, clear payment terms, prompt invoicing, and a consistent follow-up process do more to protect cashflow than any amount of chasing after the event.

Read our full guide for a practical system to prevent late payment before it starts, plus what to do the moment an invoice becomes overdue.

If you need help improving your cashflow, managing late payments, or strengthening your credit-control processes, get in touch to discuss how we can help.