Cash Flow Tips for SMBs: The Invoicing Side of the Story

Cash flow problems in SMBs are rarely a revenue problem — they're usually a collections problem. Seven interventions that deliver immediate results.

Most SMB cash flow issues aren't a revenue problem — they're a collections problem. Invoices go out late, reminders never get sent, payment terms are too long. Seven improvements to change that.

1. Invoice immediately after delivery

Not "all at once at the end of the month." Send the invoice on the same day the client receives value — that's when they're most likely to approve it without question.

2. Short payment terms for new clients

14 days for the first 3 invoices. Optionally extend to 30 after that. This lets you test payment behaviour before you make a deeper commitment.

3. Automated reminders

Day 3, day 14, day 28. No manual steps whatsoever.

4. A payment link on every invoice

Lower the barrier to paying. Mollie, Stripe, or your bank can provide a direct payment QR code or link. In practice: payment conversion typically rises by 15–25%.

5. Deposit for large projects

30–50% upfront at the start. The remainder in instalments. You never carry more than two months of work-in-progress at any time.

6. Early-payment discount

2% discount for payment within 10 days. Mathematically it works out to a high implied "interest rate," but it's often psychologically effective — clients feel like they're getting a deal.

7. Review your debtors monthly

Track DSO (Days Sales Outstanding) each month. Is it creeping up? Investigate. Look at it per client too: who consistently pays late? It may be worth focusing more on prevention.

See also: bad debts, direct debit vs. manual collection.