Make the Invoice Easy to Pay
Late payment often starts with an invoice that's hard to act on. Every invoice should show:
- Your business name and contact details, and tax numbers where they're required
- An invoice number and date
- What it's for, matching the quote
- The amount, the tax and the total, shown separately
- A due date, not just "net 30"
- How to pay, with a payment link if you take cards
- What's already been paid, such as a deposit
Tax rules differ. Check what your province or state requires on an invoice, including GST/HST or sales tax registration numbers, and ask an accountant if you're unsure.
Invoice Right Away
Send the invoice the day the work is done or picked up. Every day you wait is a day added to when you get paid. For long jobs, bill in stages instead of waiting until the end.
| Billing pattern | When to use it |
|---|---|
| Deposit, then the balance at pickup | Most custom work |
| Progress billing by milestone | Long jobs, installs and big builds |
| Paid in full up front | Rush jobs, small online orders, new customers with big jobs |
| Invoice with a due date | Repeat business customers you trust |
For deposits and terms, see How to Negotiate Payment Terms With Customers.
Set Clear Due Dates
"Due on receipt" is vague. "Due March 14" isn't. Put a real date on every invoice.
With business customers, ask before you invoice who handles payments and what they need on the invoice, such as a purchase order number. An invoice without the PO number can sit unpaid until someone notices.
Follow Up on a Schedule
Don't wait until you're angry. Follow up on the same schedule every time, so it's routine, not personal.
| When | What to do |
|---|---|
| A few days before the due date | A friendly reminder with the amount, the date and the payment link |
| On the due date | A short "due today" note with the link |
| A week late | A firmer note, and a phone call |
| Two to four weeks late | Pause new work, and call to agree on a date |
| Longer | A final notice in writing, then decide what's next |
Scripts for Late Payers
First Nudge
"Hi Jordan, a quick reminder that invoice 1042 for $640 was due on the 14th. Here's the link to pay by card. Thanks!"
Firmer
"Hi Jordan, invoice 1042 is now a week overdue. Can you let me know when it will be paid? If something's wrong with the work or the invoice, tell me and I'll sort it out."
On the Phone
"I'm calling about invoice 1042. Is anything holding it up? Can we agree on a date this week?"
A Payment Plan, If They're Struggling
"I can split the balance into two payments, on the 1st and the 15th. I'll send you a note to confirm."
Before You Pause Work
"We've paused new work on your account until invoice 1042 is paid. As soon as it is, we'll get your next job into the schedule."
Be polite and specific. Name the invoice, the amount and the date. Never threaten something you won't do.
When to Stop Work
Decide your rule before you need it, and put it in your terms. For example: no new job starts while an invoice is more than 30 days overdue, and finished custom work stays in the shop until it's paid.
Stopping work keeps the problem from growing. A customer who owes you for one job shouldn't be able to run up a second.
When It Goes Further
If a customer still won't pay after reminders, calls and a final notice, your options depend on where you are. They can include a demand letter, small claims court, a collection agency, or writing the debt off. The rules and limits vary by province or state, so talk to a lawyer or your local small claims office before you act.
Whether you can charge interest or late fees also depends on your local rules and on what your terms say. If you plan to charge them, put them on the quote and the invoice from the start.
This is general business guidance, not legal advice.
Card Payments and Refunds
Cards get you paid faster, because the customer can pay from the invoice in a minute. Processing fees come off each payment, so decide whether your prices absorb them. Rules on passing card fees on to customers vary by province, state and card network, so check before you add a surcharge.
When you refund, refund the same way the customer paid where you can, and keep a record such as a credit note.
Do It in Customakr
- When a customer accepts a quote that asks for a deposit, the deposit invoice is made and sent for you, and they can pay it by card from the approval page. From an accepted job, create a Deposit, Progress (Solo and up) or Final invoice, with the share of the contract and the number of days until it's due. The final invoice bills what's left, so the deposit and earlier payments are already taken off. Invoices start with the Maker plan.
- Connect your own Stripe account in Card Payments, then use Send Card Payment Link. Card payments mark the invoice paid by themselves. For cash, cheque or e-transfer, use Mark as Paid. Customakr shows its own fee before you turn cards on: 1% of each card payment on Maker and 0.5% on Solo and up, on top of Stripe's processing fee.
- On Solo and up, turn on payment reminder emails. Customers get an email 3 days before the due date, on the due date and 7 days after, unless the invoice is paid first. Each one shows the amount, the due date and the card link. You can stop reminders for a single invoice when you've agreed on a plan.
- The Invoices screen shows what's outstanding, what's overdue and what was paid this month. The Operations Board lists overdue invoices under Needs Attention.
- Refund all or part of a payment from the invoice. Your customer gets a numbered credit note, and Customakr gives back its own fee on card refunds.
- On Solo and up, export customers and invoices to QuickBooks, or invoices to a spreadsheet for your accountant.
- The built-in terms templates already say the balance is due as stated on the invoice, and that you may stop work on overdue accounts. Edit them to match your own rules.
Checklist
- Every invoice has a number, a real due date and a way to pay.
- Tax is shown separately, with any numbers my province or state requires.
- I invoice the day the work is done.
- Long jobs are billed in stages.
- I follow up on the same schedule every time.
- My terms say when work stops on overdue accounts.
- Late fees or interest, if I charge them, are on the quote from the start.
- Refunds are recorded with a credit note.