In a Nutshell: If a big client pays late, start by working out exactly how long you can cover your costs without the payment, then follow up on the invoice early and in writing. If the gap is bigger than your reserves, a GoTyme Business Advance can bridge that gap.
Work out how long you can wait
List everything that has to be paid before the money lands: wages, rent, suppliers and SARS. Compare that with the cash you have and the income you expect from other customers. That tells you whether you have a two week problem or a two month one, and how quickly you need to act. List each week for the next two months with the money you expect in and the money that has to go out. The week your balance dips below zero is your deadline for sorting out the gap.
Follow up without damaging the relationship
- Call before you email. A quick call to your contact often uncovers a simple hold up, like a missing order number.
- Check the paperwork. Make sure the invoice went to the right person with the right reference.
- Put it in writing. Confirm what was agreed in a short email so there is a clear record.
- Offer an easy fix. A part payment now and the balance later keeps money moving.
Protect the rest of your cash flow
While you wait, hold back spending that can wait, talk to suppliers early if you need more time and keep chasing smaller invoices too. Next time, agree payment terms in writing before work starts and try not to let one client make up too much of your income. If the late payer is a big part of your turnover, it is worth asking why they are late. A client who regularly pays late may be under pressure themselves, which is a risk to your business too. Spreading your income across more customers means one late payment hurts less.
When funding makes sense
If the gap is more than your reserves can carry, funding keeps wages and suppliers paid while you wait. With a GoTyme Business Advance there is no interest. You pay one fixed fee agreed up front, then choose fixed payments (a set amount daily or weekly) or flexible payments linked to your turnover - and because we look at your trading history, a steady record with your other customers counts in your favour.
See how a GoTyme Business Advance can keep your business moving while you wait.