Start with clear terms
Agree payment terms before the first placement and make sure they are in the signed agreement. Ambiguity about terms is the most common reason for slow payment.
Invoice fast and accurately
Errors are an easy reason for clients to delay. Check purchase order numbers, rates and timesheet approvals before invoices go out, and send them as soon as work is approved.
Chase early and consistently
- A friendly reminder a few days before the due date
- A follow-up on the due date
- A call when an invoice is a week overdue
- Escalation to a senior contact if it slips further
Consistent chasing works better than occasional pressure.
Set credit limits
Give each client a credit limit based on their history and size. When a client reaches their limit, the team should know before placing more workers.
Review aged debt weekly
Look at invoices by age - current, 30, 60 and 90 days - and focus on the oldest and largest first. Record promises to pay and follow up when they are missed.
Common mistakes
- Chasing only when cash is tight
- Consultants unaware that a client is overdue
- Disputes left unresolved, holding up whole invoices
How Ledgra helps
Ledgra shows aged debt by client, sends reminders, records promises to pay and disputes, and enforces credit limits so supply stops when you need it to.