Plenty of trade businesses are busy and still short of cash, because the money for work they’ve already done is sitting in someone else’s account. Late payment is mostly a process problem. When the terms are agreed up front, invoices go out promptly and reminders happen on a schedule, most clients pay on time without any awkward conversations.
Agree the payment terms before you start
The best time to talk about money is in the quote, before any work is done. Write down:
- The total price, with tax shown clearly
- The deposit, and when it’s due
- Any progress or stage payments, and what triggers each one
- When the final invoice is due, for example 7 days after completion
- The ways the client can pay
- What happens if payment is late
When the client accepts a quote with these terms in it, getting paid isn’t something you’re asking for later. It’s what you both already agreed to.
Deposits
A deposit confirms the client is serious, covers materials you’ll order for their job, and protects you if they cancel. Keep it reasonable and tied to the real costs of starting.
Some places limit deposits by law. Some Australian states, including New South Wales and Victoria, cap the deposit on residential building work. In New Zealand, residential building work above a set value must have a written contract, along with certain information and checklists for the client. Rules change, so check what applies to you before setting your standard terms.
Stage payments on bigger jobs
On anything more than a few days’ work, don’t carry the whole cost until the end. Break the price into stages tied to clear, checkable milestones, for example:
| Stage | Trigger | Share of price (example) |
|---|---|---|
| Deposit | Quote accepted | 10% |
| Stage 1 | Strip-out and rough-in complete | 30% |
| Stage 2 | Linings and waterproofing complete | 30% |
| Final | Work complete and handed over | 30% |
Use milestones the client can see for themselves, so there’s no debate about whether a stage is done. The percentages here are only an example. Set your own to match where your costs fall, and within any legal limits that apply.
Invoice straight away
Every day between finishing and invoicing is a day added to how long you wait for your money. Send the invoice the same day a stage or job is done, ideally from your phone before you leave site. Make it clear:
- Invoice number and date, and a clear due date
- What the invoice is for, matching the quote or stage
- Tax shown as your country requires
- How to pay, with bank details or a pay-now link
Make paying easy
The easier it is to pay, the faster you get paid. A “pay now” link that takes a card or a phone wallet gets a lot of invoices paid on the day they arrive, especially from homeowners. Bank transfer details should be on every invoice too, for clients who prefer it.
A reminder routine that works
Set up a schedule and stick to it, so chasing money isn’t personal or emotional:
- Three days before the due date: a friendly heads-up. “Just a reminder that invoice 1042 is due on Friday.”
- On the due date: “Invoice 1042 is due today. Here’s the link to pay.”
- Three days overdue: “Invoice 1042 is now overdue. Could you let me know when payment will be made?”
- Seven days overdue: a phone call. Ask directly when they’ll pay, and agree a date.
- Fourteen days overdue: a formal written notice that sets out what’s owed, the original terms and what you’ll do next.
Most late payers are disorganised, not dishonest, and the first two reminders are enough. Automated reminders do this without you having to remember. In TradeFlow they’re built in.
When a client still won’t pay
- Talk to them. Find out if there’s a problem with the work or with their cash. A short payment plan, agreed in writing, beats a long dispute.
- Pause further work if your contract allows it, rather than adding to what’s owed.
- Use the formal process for your country. In New Zealand, the Construction Contracts Act sets out a payment-claim process for construction work. A claim made correctly under that Act must be answered within set timeframes, or the client can become liable for the amount claimed. Small claims can also go to the Disputes Tribunal. Other countries have their own security-of-payment laws and small claims courts.
- Get advice for larger amounts. A letter from a lawyer or a debt collection service is often enough.
Habits that keep cash coming in
- Put payment terms in every quote
- Take a deposit on every job that needs materials ordered
- Use stage payments on anything longer than a few days
- Invoice the day the work is done
- Give clients a quick way to pay by card
- Run the reminder schedule every time, for every client
Getting paid on time isn’t about being tough. It’s about being clear up front and consistent afterwards.
Common questions
How do I get clients to pay my invoices on time?
Agree the payment terms in the quote before you start, invoice the same day a stage or job is done, give clients a quick way to pay such as a pay-now link, and run the same reminder schedule every time, for every client.
When should a tradie send payment reminders?
A simple routine is a friendly heads-up three days before the due date, a reminder on the due date, a follow-up at three days overdue, a phone call at seven days, and a formal written notice at fourteen days overdue.
What can I do if a client won’t pay?
Talk to them first, as a short payment plan agreed in writing beats a long dispute. Pause further work if your contract allows it, use the formal process for your country, such as the Construction Contracts Act in New Zealand, and get advice for larger amounts.
This guide is general information, not legal or financial advice. Payment and contract rules vary by country and state and change over time, so check the current rules where you work.