How to Collect Payments Faster from B2B Customers

Late payments are the most common reason profitable businesses run short of cash. Most customers aren't refusing to pay; they're paying whoever follows up best.

Set terms before the first order

Agree credit days (30, 45, 60) and a credit limit in writing. A credit limit is the most a customer can owe at any time. Check new customers' payment history with other suppliers if you can.

Invoice right, invoice fast

Payment delays often start with invoice problems: wrong PO number, wrong GSTIN, missing delivery proof. Send the invoice the day goods are delivered, with every reference the customer's accounts team needs.

Remind before the due date

A week before the due date, call or message the accounts contact: "Invoice 0490 for ₹9.2 lakh is due on 17 October. Is it in your payment run?" This surfaces problems while there's still time to fix them.

Log every promise

After each call, write down what was promised and when to follow up: "₹1 lakh by 25 Oct, rest in November." Promises with dates make the next call easy, and broken promises tell you which customers are in trouble.

Use ageing buckets

Group overdue amounts: 1-30, 31-60, 61-90 and 90+ days. Focus first on large amounts in the older buckets. A rising 61-90 bucket is a warning sign for cash flow.

Escalate politely, step by step

1. Accounts contact: reminder and follow-up calls
2. Purchase or business contact: they want your supplies to continue
3. Senior management on both sides
4. Formal notice, and for MSME suppliers, the MSME Samadhaan portal

Know when to hold

Customers over their credit limit or with invoices over 90 days should be reviewed before you accept new orders. Holding a shipment is often the most effective reminder.

Make it a weekly routine

Every Monday: check calls due, reminders for invoices due this week, and customers to hold. Twenty minutes a week can cut debtor days noticeably.

Our Debtors Follow-up & Credit Control System tracks credit limits, invoice ageing and every promise, and tells you who to call, who's over limit and whose orders to hold.