Getting late payments under control

“63% of Australian businesses say they are losing money – some even reporting estimated losses of over $10,000 per month on average – to late payments.”Pursuing Payments 2025 report, GoCardless

This recent report from the bank payment provider, GoCardless, shows just how challenging late payments can be for Australian small businesses.

“68% of all respondents now agree that late payments are simply an ‘inevitable cost’ of doing business.”

“This represents a fundamental shift in mindset since 2023, with around half of Australian (48%) businesses in 2025 reporting they are waiting longer for payments than 12 months ago.”

What can your business do to combat late payments?

When customers fail to pay on time, that’s not just an issue for your aged debtor report.

Slow payment has a knock-on effect on your cashflow, which in turn can affect the working capital you have available in the business. Taking steps to speed up late payments is vital.

Here are some fundamental ways to improve payments times:

• Implement eInvoicing: Switch to eInvoicing and send bills directly to your customers’ accounting software. This reduces manual errors and speeds up approvals.
  
• Offer multiple payment methods: Offer the most convenient ways for customers. This may include having credit cards, BPAY and digital wallets as payment methods.
  
• Automate payment reminders: Use your accounting software to automatically send polite emails or SMS reminders to customers, both before and after the invoice due date.
  
• Monitor your aged debtors weekly: Regularly review your aged receivables report to spot any overdue accounts early and make follow-up calls to chase for payment.
  
• Ask for deposits upfront: For larger projects, secure a percentage of the total fee before work begins. This helps you cover costs and ensures you’re not out of pocket.