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Late payments: a cash flow survival guide

Late payments hurt cash flow because the business has often already paid for time, stock, materials or overheads before customer money arrives. Reduce the risk by invoicing quickly, agreeing payment terms clearly, sending reminders early, keeping delivery evidence and tracking overdue invoices every week. For formal late-payment rights, check current GOV.UK guidance or get professional advice. A practical guide to reducing late-payment stress with better invoice habits, reminders and evidence.

Key takeaways

• Slow invoicing creates late payment risk before the customer has done anything wrong.
• Clear terms, evidence and reminders reduce awkward chasing.
• Aged debt should be reviewed weekly, not only at month end.
• Formal late-payment rules exist, but use official guidance before charging interest or recovery costs.

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