30/09/2026
Start of the month means it's invoicing time. But how many of your invoices get paid on time?
Last year, small businesses in NZ were waiting on average 24.1 days to be paid, and the average late payment was 4.7 days beyond agreed terms. That's nearly a whole working week without that additional cashflow businesses often need.
So, what can you do to speed up cash collection and reduce these late payments?
1. The easier you make it for the customer to pay, the quicker they will. Offer a mix of online payment options directly into your digital invoices, significantly cutting collection time. You can also pass on the payment fees to the customer.
2. E-invoicing is one of the fastest ways to get your invoices in front of customers. Sending invoice data straight into your customer's accounting system eliminates manual data entry, reducing billing errors and speeding up approval cycles.
3. For regular recurring invoicing, Direct Debit is a great way to automate cash collection. Once your customer accepts this, funds will be taken directly from their account on the due date - shifting control for payments to you.
4. If repeat offenders are consistently late with payment, it's worth reviewing and updating agreed invoice payment terms. Shorten default terms and request partial upfront deposits for larger jobs. Setting expectations early brings cash in faster.
If you're consistently struggling with late-paying customers and poor cashflow as a result, then a CPIM (Cashflow Profit Improvement Meeting) would be right for you, and we can review your current setup and suggest appropriate ways you can speed up payment times and bring your cashflow position back under control.
https://mhco.co.nz/cashflow-improvement/
