Your business is growing, sales are up, and everything feels on track—until a late payment throws a spanner in the works. Sound familiar? Managing cash flow can be one of the most frustrating parts of running a business, but it doesn’t have to be. The good news is, that with a few smart credit control strategies, you can take control of your cash flow, reduce stress, and create a strong financial foundation.

Paul Jesson, Head of Professional Services and Outsourced Finance at MPA, shares seven practical credit control hacks to help you stay on top of your finances and keep your business thriving.

1. Take a Proactive, Strategic Approach

Late payments often sneak up because businesses don’t have a plan in place until it’s too late. Think of your credit control strategy like a roadmap—it should guide how you handle payments from the moment you send an invoice to the day the money lands in your account.

Paul’s Three Top Tips:

1. Map out a clear strategy with simple processes for invoicing, follow-ups, and dealing with late payments.
2. Make sure your team is on the same page—consistency is key when it comes to credit control.
3. Play out worst-case scenarios: “What if a key client doesn’t pay on time?” Knowing how you’d respond means you won’t be caught off guard.

When your customers know you’re organised and on top of things, they’re less likely to push your payment terms.

Read more on using technology to improve cash flow: How can I use technology to strengthen my business finances?

2. Get to Know Your Customers (Beyond the Sale)

Trust is great to have in place. But when it comes to credit, verification is even better.

Before you offer credit terms to a new customer, take time to get to know them—not just through a great sales meeting, but through real financial checks.

Paul suggests these two steps are non-negotiables:

1. Run credit checks, review account forms, and do some online digging. Think of it like this: if a bank wouldn’t lend to them, would you?
2. Look for patterns. Are they consistently late paying other suppliers? That’s a red flag.

It’s tempting to offer generous credit terms to win new business, but a little patience upfront can save you a lot of headaches later.

3. Make Your Payment Terms Crystal Clear

If you’ve ever had a client say, “I didn’t realise the payment was due already“, it’s a sign that your payment terms aren’t clear enough.

Here’s how to fix this:

• Break down your invoices clearly—what you provided, what it costs, and exactly when payment is due.
• Spell out the “what ifs”—what happens if payment is late? Late fees or interest? Don’t just include it in the fine print; make it easy to spot.
• Revisit your Terms & Conditions. They’re not just legal jargon—they protect you if things don’t go to plan. For example, if you’re selling goods, consider adding a clause that ownership stays with you until payment is made in full – and enforce it! Don’t let goods leave until payments are confirmed.

When expectations are clear from the start, you’ll spend less time chasing payments later.

Read more about improving receivables: Managing cashflow: Tips for small businesses

4. Set Boundaries, And Stick to Them

Some companies use their buying power to take advantage of other businesses.

It’s tough when a big client stretches your payment terms, especially if you’re worried about damaging or are dependent on the relationship. But here’s the thing: late payments from even one key customer can put a serious strain on YOUR cash flow.

• Don’t be afraid to set boundaries. Your business deserves the same respect as any larger company. You can undermine the value you provide by being too lenient.
• If chasing payments feels uncomfortable, consider outsourcing credit control. Sometimes having a third-party handle follow-ups helps maintain positive client relationships—like having someone else play the ‘bad cop’ while you focus on the partnership.

Ultimately, protecting your cash flow isn’t about being difficult—it’s about running a healthy business.

5. Stay Firm, Fair and Professional

Chasing payments can be frustrating, especially when you feel like you’ve done everything right. But letting emotions get the better of you rarely helps—and can even damage client relationships.

• Keep it professional. A friendly, polite tone is often more effective than an aggressive one.
• Be consistent. Don’t let things slide just because a client has been “good in the past.” If you make exceptions, it’s harder to reinforce your boundaries later.
• Document everything. Keep a record of emails, calls, and payment promises. It’ll come in handy if things escalate.

Think of it like this: you’re not just chasing money—you’re reinforcing the value of your work.

6. Confront Your Problems – Don’t Let Late Payments Linger

The longer an invoice stays unpaid, the harder it becomes to collect.

• Follow up the day an invoice becomes overdue. A quick, friendly reminder often does the trick.
• Don’t avoid difficult conversations. If a client regularly pays late, pick up the phone and ask what’s going on. You’ll often uncover the issue faster than through endless emails.

Late payments aren’t just a financial risk—they drain your time and energy. A proactive approach keeps things from snowballing.

If you have a large backlog of unpaid invoices, you don’t have to tackle the problem yourself. One of the major issues caused by late payment is the volume of management time it ties up, and this should be avoided. You can outsource this work to external credit control functions, who can also support you to implement a credit control strategy going forward.

7. Get External Help

Credit control can be time-consuming, especially when you’re juggling everything else that comes with running a business. If chasing invoices is eating into your time—or your sanity—it might be time to get some help.

• Outsourced credit control services can improve collection rates without the stress of doing it yourself. It is also helpful to deploy someone who is emotionally disengaged from the customer and the issue.
• Financial experts (like us!) can help you spot patterns, identify risks early, and suggest strategies to improve cash flow.

Asking for help isn’t a sign of weakness or defeat—it’s a smart move that frees you up to focus on what you do best.

As your business grows, it may be beneficial to have access to an outsourced team of financial professionals to manage your credit control and provide strategic financial advice, especially if hiring a full-time specialist is too costly.

Read more: The Benefits of Outsourcing

Let’s Take the Stress Out of Credit Control

Struggling with late payments or cash flow headaches? You’re not alone—and you don’t have to tackle it alone either.

At MPA, we’re here to help. Our team of expert accountants, tax advisors, and finance professionals can support you with everything from credit control strategies to hands-on help chasing payments.

Let’s chat about how we can make credit control simple, effective, and stress-free—so you can get back to growing your business.