How to use this checklist.
This is not a guide. It is a system. Every item below is something you should be doing for every client, every invoice, every time. No exceptions.
If you are already doing all of this, brilliant. You are ahead of most UK businesses. If you are not, do not try to implement everything at once. Start with the section where things are currently falling apart (for most businesses, that is "when an invoice goes overdue") and build from there.
You can read through the explanations below or skip straight to our downloadable full printable checklist.
Qascade Tip
Print it. Pin it. Follow it. The difference between businesses that get paid on time and businesses that do not is rarely knowledge. It is consistency. This checklist only works if you follow it every time. Not when you remember. Not when things get bad. Every time.
1. Before you start work.
Good credit control starts before you send a single invoice. Most late payment problems are caused by things that were not set up properly at the beginning.
☐ Agree payment terms in writing. Not verbally. Not "assumed." In writing, signed or acknowledged by the client before work begins. Specify the payment period (14 days, 30 days, on completion), the method of payment, and what happens if payment is late. If you need help with this, our guide to setting payment terms covers everything.
☐ Get the right invoice contact details. Do not send invoices to the person who signed the contract. Find out who actually processes invoices at the other end: their name, email address, and any internal reference numbers (like a purchase order) they need. This single step prevents more payment delays than anything else on this list.
☐ Confirm how the client processes invoices. Some companies only do payment runs once a month. Some need a PO number on every invoice or they will not process it. Some require invoices to be submitted through a portal. Find out the process before you start, not after your invoice has been sitting in a queue for three weeks.
☐ Include a reference to the Late Payment Act on your terms. A single line referencing the Late Payment of Commercial Debts (Interest) Act 1998 on your payment terms acts as a deterrent. Most clients will never test it, but the ones inclined to pay late will think twice.
☐ For larger contracts, run a basic credit check. Services like Experian and CreditSafe let you check a company's payment history and financial health. For larger contracts where a lot of money is at stake, this is worth the small cost. You would not lend a stranger thousands of pounds without checking if they could pay it back. Offering credit terms is no different.
2. When the invoice goes out.
☐ Invoice immediately. The moment work is delivered (or the agreed milestone is reached), the invoice goes out. Not at the end of the week. Not at the end of the month. Immediately. Every day you delay sending an invoice is another day added to your payment timeline.
☐ Make sure the invoice is accurate. Wrong amount, missing PO number, incorrect company name: any of these gives the client a reason (or an excuse) to delay processing. Double-check everything before you send it.
☐ Include all the essentials on the invoice. Your company name and address, the client's name and address, a unique invoice number, the date, a clear description of the work, the total amount due, your payment terms, your bank details, and any reference numbers the client requires. If any of these are missing, the invoice may not get processed.
☐ Send the invoice to the right person. Not the MD. Not the project manager. The person (or email address) responsible for processing payments. This is the contact you identified in Step 1.
☐ Keep a record. Log the date you sent the invoice, who you sent it to, and the due date. This does not need to be complicated. A spreadsheet works. Your accounting software works. What does not work is relying on memory.
Good To Know
The invoicing gap costs you money. If your payment terms are 30 days and you wait a week to invoice, you have just given yourself 37-day payment terms. If you batch invoices at the end of the month instead of sending them on delivery, you could be adding 2 to 3 weeks to every payment cycle. Invoice the same day the work is done. No exceptions.
3. Before the due date.
☐ Send a reminder 3 days before the invoice is due. A short, friendly email confirming the invoice is coming due. Attach the invoice again. Ask if there are any issues. This is not chasing. It is professional, it catches problems early, and it dramatically reduces the number of invoices that go overdue. (Here are email templates for every stage if you need them.)
☐ Confirm the invoice has been received and is in the system. If you are dealing with a larger company, a quick email or call to the accounts department to confirm they have the invoice and it is queued for payment can save you weeks. "Just checking invoice #1234 is in the system and on track for payment on [date]" is all it takes.
4. When an invoice goes overdue.
This is where most businesses fall apart. The invoice goes overdue and either nothing happens (the owner is too busy or too uncomfortable to follow up) or one half-hearted email gets sent and then forgotten about.
Here is what should happen:
☐ Day 1 overdue: send a polite follow-up email. Reference the invoice number, the amount, and the due date. Attach the invoice again. Ask if there are any issues. Keep the tone friendly. Assume the best.
☐ Day 7 overdue: pick up the phone. If your email has not been responded to, call them. Emails are easy to ignore. Phone calls are not. A two-minute conversation resolves most overdue invoices. Ask if there is a problem with the invoice, when you can expect payment, and whether they need anything from your end. Here is how to have that conversation without damaging the relationship.
☐ Day 14 overdue: send a firm written follow-up. Reference your previous emails and phone calls. Set a clear deadline for payment (typically 7 days). Ask them to confirm in writing when the payment will be made.
☐ Document everything. Every email, every phone call, every promise to pay. Note the date, who you spoke to, and what was said. If things ever escalate to a formal dispute or legal action, this record is your evidence.
Watch Out
Do not let it drift. The number one credit control mistake is inconsistency. If you chase one week and then forget for three weeks, you are training your clients to think payment is optional. The schedule above only works if you follow it every single time. If you cannot commit to that, it might be time to consider outsourcing the process.
5. The escalation process.
If the steps above have not resolved the payment, you need a clear plan for what comes next. This is not the time to be making it up as you go.
☐ Day 30 overdue: send a formal notice. Reference the Late Payment of Commercial Debts Act 1998. State the statutory interest and compensation you are entitled to claim. Set a final deadline. Keep the tone professional but leave no ambiguity.
☐ Day 45+ overdue: send a final notice. This is the last step before you escalate to formal action. State clearly what will happen if payment is not received within 14 days: debt recovery, letter before action, county court claim.
☐ Know your escalation options. Before you get to this point, make sure you know what comes next: a letter before action (required before court proceedings), mediation, small claims court (for debts under £10,000), or instructing a solicitor. Our guide to what to do when a client will not pay walks through each of these in detail.
6. The monthly review.
Credit control is not just about chasing individual invoices. It is about maintaining visibility over your entire receivables position.
☐ Review your outstanding invoices. At least once a month, sit down and look at everything you are owed. What is current? What is overdue? How overdue is it? If you use Xero, QuickBooks, or similar software, your aged receivables report gives you this at a glance.
☐ Identify repeat offenders. Are the same clients paying late every month? That is a pattern, not a one-off. It may be time for a conversation about payment terms, a shift to upfront deposits, or a decision about whether the client is worth keeping.
☐ Check your Days Sales Outstanding (DSO). DSO tells you how many days, on average, it takes you to get paid after invoicing. Track it monthly. If it is going up, your credit control process needs tightening. If it is going down, what you are doing is working.
☐ Review your process. Is there a step in the checklist above that you keep skipping? A client you keep letting slide? A point in the timeline where things consistently stall? Identify the weak link and fix it.
Qascade Tip
The monthly review takes 30 minutes. Block it in your calendar. Make it non-negotiable. Those 30 minutes will save you hours of panicked chasing later, and they give you a clear picture of your cash position that makes forecasting, hiring, and growth decisions infinitely easier.
The full checklist.
Here it is, all in one place. Print it, pin it to the wall, and follow it.
Before you start work
☐ Payment terms agreed in writing
☐ Invoice contact details confirmed (name, email, PO requirements)
☐ Client's invoice process understood (payment runs, portals, PO numbers)
☐ Late Payment Act referenced on your terms
☐ Credit check completed (for larger contracts)
When the invoice goes out
☐ Invoice sent on the day work is delivered
☐ Invoice is accurate (amount, PO, company details)
☐ All essentials included (your details, their details, invoice number, terms, bank details)
☐ Sent to the correct payment contact
☐ Invoice date and due date logged
Before the due date
☐ Reminder sent 3 days before due date
☐ Invoice receipt confirmed with accounts department (for larger clients)
When an invoice goes overdue
☐ Day 1: polite email follow-up (invoice attached)
☐ Day 7: phone call
☐ Day 14: firm written follow-up with deadline
☐ Everything documented (dates, contacts, responses)
Escalation
☐ Day 30: formal notice referencing Late Payment Act
☐ Day 45+: final notice before formal action
☐ Escalation route decided (debt recovery / letter before action / court)
Monthly review
☐ All outstanding invoices reviewed
☐ Repeat late payers identified
☐ Days Sales Outstanding tracked
☐ Process reviewed and weak links fixed
Key takeaways
- Credit control is a system, not a reaction. It starts before you send the invoice.
- Get the right contact details and understand how the client processes payments before work begins.
- Invoice immediately. Every day you delay is a day added to your payment timeline.
- Chase consistently. Not when you remember. Every time, on schedule.
- Document everything. It protects you if things escalate.
- Review monthly. 30 minutes a month gives you full visibility over your cash position.
- If you cannot follow this checklist consistently, outsourcing the process is a realistic option.