How Can I Get Paid Quicker by Customers?
Slow payments are one of the biggest pain points in UK construction. Late invoices choke cashflow, delay payroll, and make it difficult to plan for growth. The good news? You can take back control of your payment cycle with a few smart systems and conversations.
At Thomas Emlyn Ltd, we help construction business owners design finance systems that keep cash flowing — not stuck in someone else’s account.
What causes payment delays in construction?
Delays often happen because of weak payment terms, unclear communication, incomplete documentation, or late valuation approvals. Many construction firms effectively fund client projects by waiting 45–90 days to get paid.
Here’s what typically goes wrong:
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Vague terms — payment schedules and retention clauses aren’t specific enough.
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Poor process — missing purchase orders or unsigned timesheets stall approvals.
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Reactive chasing — teams only follow up after payments are already overdue.
A strong finance system prevents these issues before they start.
How can I get paid faster by my customers?
To get paid quicker, tighten your payment terms, invoice immediately after work, use digital payment systems, and track every outstanding amount weekly. Combining firm communication with automation ensures clients take your invoices seriously and payments arrive predictably.
1. Tighten your payment terms
Review your contracts before projects start. Agree to 14 or 21-day payment terms instead of the standard 30. Reference the Construction Act 1996, which gives you the right to set clear payment dates and issue notices for late payment interest.
2. Invoice faster
Every day you delay invoicing pushes payment further back. Use systems like Xero or SimPRO to issue invoices directly from approved job sheets. Aim to send invoices within 24 hours of completing work.
3. Add digital payment options
Bank transfers are fine, but tools like GoCardless or Crezco make it effortless for clients to pay. They reduce friction and can even automate reminders.
4. Set up automated reminders
In your accounting system (Xero or QuickBooks), set weekly chasers for overdue invoices. Keep the tone polite but firm — you’re protecting your business, not begging for money.
5. Track debtors weekly
Use a Virtual Finance Office (VFO) or a dedicated finance assistant to produce a Debtors Summary every Friday. Categorise by “0–30 days”, “31–60 days”, and “60+ days”. Consistency turns credit control into a system, not a scramble.
What tools or systems actually make a difference?
Integrated finance tools give you real-time visibility. For construction firms, that means linking your project data, payroll, and invoicing into one ecosystem. The goal: every pound owed is visible, accountable, and chased automatically.
Recommended tools:
| Area | Tool | Why It Helps |
|---|---|---|
| Project Management | SimPRO, Tradify | Auto-generate invoices from completed jobs |
| Accounting | Xero, QuickBooks Online | Instant overview of debtors and reminders |
| Payments | GoCardless, Crezco | Faster, frictionless payments |
| Cashflow Forecasting | Float, Fathom | Predict shortfalls weeks in advance |
Example: One of our clients reduced debtor days from 72 to 28 within six months after automating invoicing.
Why does faster payment matter beyond cashflow?
Quick payments improve your margins and reduce financing costs. Cash in the bank means you can negotiate supplier discounts, take on better projects, and pay staff promptly — all of which strengthen your reputation and profitability.
Late payment doesn’t just slow cashflow — it erodes confidence. When your subcontractors or suppliers trust you to pay on time, projects run smoother, and you attract better teams.
How Thomas Emlyn Ltd helps construction firms get paid faster
Our Virtual Finance Office (VFO) service builds strong payment systems into your operations:
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We review and rewrite your terms and processes.
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We integrate invoicing and payment platforms.
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We monitor debtor days weekly and alert you before problems arise.
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We train your team to communicate payment expectations clearly from day one.
We combine practical finance tools with strategic oversight — helping you achieve stronger margins, healthier cashflow, and sustainable growth.
FAQs
1. What’s a good target for debtor days in construction?
Aim for under 30 days. Many firms hover around 60–75, but by tightening terms and using automated reminders, you can halve that. Regular cashflow forecasts will show if you’re improving month by month.
2. Can I charge interest on late payments?
Yes. Under the Late Payment of Commercial Debts (Interest) Act 1998, you can charge 8% plus the Bank of England base rate once payment is overdue. State this clearly in your contracts to encourage on-time payments.
3. Should I offer early payment discounts?
Sometimes — a 1–2% discount for payment within 7 days can work if cashflow is your top priority. Just make sure it doesn’t undermine your margins or set an expectation of permanent discounts.
4. How often should I review my debtor report?
Weekly. Waiting until month-end is too late. Consistent reviews — ideally built into your VFO rhythm — make late payments rare instead of routine.
5. What’s the difference between a bookkeeper and a Virtual Finance Office?
A bookkeeper records what’s already happened. A Virtual Finance Office (VFO) manages the system that ensures it happens faster — from invoicing to debt collection to forecasting. It’s proactive cashflow management, not just data entry.
Next Steps
If your invoices are always “just waiting for approval,” it’s time to fix the system, not chase harder.
At Thomas Emlyn Ltd, we specialise in finance systems that help construction business owners get paid faster, plan smarter, and grow with confidence.
📞 Book a quick call here to discuss your current cashflow process — we’ll show you how to cut your payment cycle in half.
Thomas Emlyn Ltd
Stronger Margins – Healthier Cashflow – Sustainable Growth
