Late payments are one of those challenges every small business owner dreads. When you’re waiting on overdue invoices, it can throw a wrench in your entire operation. Rent, payroll, inventory—all the crucial expenses—still need to be paid on time, whether your customers pay you or not. But there are ways to reduce this risk and protect your business’s financial health.

The Ripple Effect of Late Payments on Small Businesses

Cash Flow Strain

Unlike larger companies, which often have a cushion of reserves, small businesses tend to operate with more sensitive cash flows. Every payment you’re expecting plays a role in covering daily operational costs, like paying suppliers, employees, or utilities. Using a small business invoice template can help streamline this process, ensuring timely invoicing and reducing errors that may lead to payment delays.

When an invoice isn’t paid on time, your cash flow takes an immediate hit, and you may have to dip into savings, take out short-term loans, or delay important purchases. These stop-gap solutions often come with added costs, like interest or fees, that eat into your margins.

Administrative Burden

Late payments also add to your workload. Instead of focusing on growth or client relations, you might find yourself spending valuable time chasing down overdue invoices, sending follow-up emails, or making awkward phone calls. This extra layer of stress pulls you away from more important tasks, and, in the end, you’re investing time and energy just to get the money you’ve already earned.

Relationships at Risk

If you’re struggling to pay your suppliers on time because your clients aren’t paying you, it can damage your reputation. Your suppliers might tighten their payment terms or even refuse to work with you in the future. Worse yet, it can affect your ability to pay employees on time, which can lead to lower morale and productivity.

Strengthening Financial Health Through Invoicing Best Practices

Clear and Concise Payment Terms

One of the most important things you can do is set clear payment terms from the very beginning. Whether you’re working with long-time clients or new ones, every invoice should clearly state when the payment is due, what payment methods are acceptable, and any penalties for late payments.

Incentivize Early Payments

Offering an incentive for early payments is another effective strategy. A small discount—perhaps 1-2% off the total invoice—can motivate clients to prioritize paying you sooner rather than later. While you might forfeit a tiny portion of your profit, the benefit of improved cash flow often outweighs the cost.

On the flip side, it’s important to enforce penalties for late payments. These don’t need to be excessive, but they should be enough to deter customers from dragging their feet. Clearly state in your payment terms that a late fee will be applied after a certain date, and follow through if needed.

Automate Your Invoicing Process

Automating the invoicing process not only saves time but also reduces the risk of mistakes. With automated invoicing, you can set reminders that notify customers when a payment is due or overdue, without needing to do it yourself. Automation can also help with tracking payments in real-time, giving you a clear view of outstanding invoices and their statuses.

Offer Multiple Payment Options

The easier you make it for customers to pay, the faster they’ll settle their invoices. Offer various payment methods, including online options like credit cards, bank transfers, and digital payment platforms. By giving your clients multiple ways to pay, you’re eliminating excuses and making it more convenient for them to settle up quickly.

Regular Communication

A friendly reminder a few days before an invoice is due can keep it top of mind for clients who may have forgotten. If a payment becomes overdue, a gentle but firm follow-up can help resolve the situation without straining the relationship. Regularly checking in can prevent this and ensure that everyone is on the same page.

Credit: Brooke Cagle

The Role of Digital Invoicing in Reducing Late Payments

In recent years, digital invoicing has emerged as a powerful tool for small businesses looking to manage their finances more efficiently. Invoices can be sent out automatically, reminders can be scheduled, and payment statuses can be tracked in real-time.

Digital platforms also integrate with payment gateways, enabling clients to pay directly from the invoice with just a few clicks. This streamlines the entire process, making it easier for clients to pay and easier for you to track the payments. The added benefit of having a clear digital paper trail can also be useful if any disputes arise.

Protecting Your Small Business From Financial Strain

Late payments don’t have to be a constant headache. By taking a proactive approach to your invoicing process, you can minimize the risk of delayed payments and keep your business’s finances healthy. The right invoicing system, paired with effective communication and a bit of structure, can safeguard your business and free you up to focus on growth, rather than chasing payments.

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Credit cards are valuable tool to manage your personal finance and start to build a credit score, understanding them properly is important before you apply. There are lots of misunderstandings about credit cards so we are here to debunk some of them and set the story straight so you can relax and use the account effectively.

9 common credit card myths debunked

By understanding and debunking these myths, you can make more informed decisions about how to manage your credit cards, ultimately leading to a healthier financial future.

Why Teaching your kids to be financially literate is important

Money and pensions service data shows that only 47% of children receive a meaningful financial education at home or at school, so millions are without any financial guidance at a time when habits are forming. Teaching your kids to be financially literate will help set them up to build healthy habits and learn to manage their money so that when they need it most they will know what to do.

Many of us know how hard it is to build those habits later on so instilling a healthy relationship with money early on will give them a great advantage. Deciding when your children are ready to learn about money can be difficult but the sooner they learn it they better their relationship will be with the money they earn.

Here are some ways you can start teaching your kids to be financially literate;

Do Olympic athletes get paid?

Competing at the Olympics takes years of hard work and determination to perform in their sport and compete against other world-class athletes for the chance of winning a medal. For many athletes this is all they require as motivation, however, do we think that Olympic Athletes deserve financial support compensation for their work?

Do all countries pay their athletes?

The UK, Norway, Iceland and Sweden do not pay their athletes for winning or participating in the Olympic games.

The Olympics began for amateur sportsman to compete with no financial reward or bonus on offer. Being an Olympic athlete did and still does bring respect and fame within the industry as well as publicly, especially with the popularity of social media.

Many countries do offer financial rewards in some form to their winning athletes, with the top 15 paying over $100,000 to those winning a Gold medal this year.

Hong Kong are at the top of the list offering over $768,000 for gold and $380,000 for winning Silver.

Singapore reward gold medallists almost 20 times more than the US according the NBC News with individual gold medallists earning $737,000.

The US Olympic and Paralympic committee pays their athletes $37,000 for winning gold, $22,500 for silver and $15,000 for bronze.

Other forms of reward

Malaysia and Bulgaria offer their financial rewards in an alternative way rather than a lump sum. They offer monthly allowances of $1000 for life for gold medallists.

New Zealand offer $40,000 annually until the next Olympic games commences for their gold winners.

Poland is celebrating 100 years since their first participation in the Olympic games this year and are offering an extra reward for their athletes. Forbes reports that Poland are already providing $82,000 for winner of gold, a painting from a talented Polish artist for every medallist, an investment grade diamond and a vacation voucher for 2 for winners of gold. This year they are also providing winners of gold a 2-bed apartment in Warsaw and athletes of team sports in first place will receive a 1-bed flat.

Governing bodies

It is down to each individual governing body for each sport to offer financial reward or not. This year World Athletics are offering gold medallists in track and field a financial reward. They have reportedly set aside $2.4 million for this reward for all winners. This is the first time an international governing body will be awarding prize money at the Olympics.

Other ways athletes make money

Sponsorship

Sponsorship is one way athletes make money aside from hoping for reward money. Athletes such as, Simone Biles will make millions each year from sponsorships alone.

Many athletes will apply for grants to cover the cost of their training and whilst they are at the Olympics, flights, accommodation and food is all paid for.

However, whilst athletes train for numerous hours a day to prepare for the Olympics, those who are less famous and receive no sponsorship deals to keep them going are known to struggle financially.

USA Today Sports reveals a 2020 study done by Global Athlete, which looked at almost 500 elite athletes across 48 countries found that 58% of athletes did not consider themselves financially stable. Most felt they did not receive the appropriate amount of financial support from the international Olympic Committee or National Federations.

So, unless athletes win at the Olympics they will be leaving without a medal and without any financial support for their training and hard work.

Do you think Olympic athletes should be paid?

Rachel Reeves cuts payments for pensioners

Rachel Reeves has addressed parliament to disclose her findings of a Conservative fumble over £22 billion of overspending. This overspending now means that the Labour government will have to find a way to make this back and ensure public spending is going where necessary.

Rachel Reeves has announced the plan to restrict the winter fuel payments this year. This news has come as a shock to those who receive the payment which helps them with their energy bills during the colder months of the year.

Update - September 2024

It was confirmed in parliament that the Winter Fuel Payments will be cut, only pensioners who receive pension credit or other means tested will be offered a winter payment this year. This will reduce the eligible pensioners from 11.4 million to 1.5 million. Many are concerned about how they will cope through the colder months with energy bills rising as well as other living costs.

Labour are cutting costs due to the missing funds from Conservative overspending.

Are you eligible for pension credit?

Those who have reached state pension age and live in England, Scotland and wales could be eligible if you have a disability or a low income. Your income includes, state pension, private pension, earning from employment and most social security such as carer's allowance. If you have a partner, your income will be calculated together.

You could be eligible if you income is lower than;

• your weekly income to £218.15 if you’re single
• your joint weekly income to £332.95 if you have a partner

Who was getting these payments?

In the Winters over 2022-23 around 11.3 million people were receiving the Winter Fuel Payments.

How much were the payments?

Winter fuel payments were around £100-300 depending on the specific situation of each household. This offered significant support for pensioners who are only receiving the state pension. The money was paid in November or December to allow pensioners to keep their heating on.

Age UK has expressed their concern over the new restrictions on Winter fuel payments as they report around 1 million elderly people have a weekly income less than £50 above the poverty line. Without the help of this government funding they could struggle to heat their home over winter.

Who will be eligible now?

Reeves has tightened restrictions which will mean around 10 million people will now miss out on this payment. Only those above state pension age and receiving pension credit or some benefit alternative and on a low income will be eligible.

If your income is below £218.15 a week or £332.95 joint with a partner you will be eligible.

Savings will be taken into account to determine eligibility.

If you suffer from a disability or severe illness then you could also be eligible despite the above.

Not only will the winter fuel payments be restricted this year but the energy price cap is predicted to increase in October meaning bills will be higher again this winter. Pensioners will be without further support to keep their homes heated and safe during the cold winter months. If you need to find way to reduce your energy usage then look for tips here.

What does home insurance cover?

• Damages from fire, extreme weather damage, smoke damage and more.
• Cover from burglary in the home, damages from break in and cover for any losses.
• Home insurance can also cover you for items inside the home such as electronics, jewellery and others.
• Cover form structural damage such as the ceilings, fixtures and fittings like baths and sinks.

The price of home insurance

Go Compare reports increasing prices in home insurance.

• For buildings only policies the price has increased by 4.4% from £160 to £167.
• - For contents only polices have been decreasing by 4% from £67 to £63.

You can often find cheaper policies when buying a combined policy.

What affects home insurance costs

• Age

Older property owners are seen as less of a risk because they tend to make less claims, are more security conscious, are at home more often making themselves less of a target for burglars as well as statistically being more financially secure.

• The cost of your home

The cost of your property will impact your home insurance due to higher costs of repairing and covering for damages.

The average price for home insurance on a house is, £214 and for a flat £192. Insurers will take into account the cost of the rebuild.

• Size of the property

Just like the cost of your home, the size of it also impacts how much it costs to rebuild meaning home insurance will be more expensive.

• Paying monthly or annual instalments

Paying monthly will usually make it more expensive than paying one large annual sum because interest will be added on each month.

• Location

Where your property is located can make a large difference in price as factors such as, crime rates, flood risk, or a more expensive area.

Foo Fighters are in full swing of their Everything Or Nothing At All 2024 tour to mark their 11^th album and their first show since Taylor Hawkins, their drummer died in 2022. Their tickets sold out in minutes after their release with fans waiting in online queue for hours in hopes of a chance to see the Foo Fighters live.

Ticket Prices

Tickets prices started out somewhat reasonable but once selling out so quickly, fans began noticing the extortionate prices of resale tickets.

Tickets at Manchester venue were originally priced at £82.50 for pitch standing and £104.50 for reserved seating.

Once sold out resale sites such as Viagogo began posting tickets at sky high prices, pitch standing tickets for £200 and seating for £493, around 4 times the original price.

Fans took to social media with their disgust at the resale and their wish for a third Manchester show from the Foo Fighters. Sadly for the fans, no extra show dates were revealed.

Resale sites posted a statement to assure fans that their sites allow for tickets to be bought and sold between fans with a secure platform and that mostly those at high prices are rarely bought with prices falling closer to the date of the shows.

Today on Viagogo tickets for the show in Birmingham on the 27^th June are priced around £79-140 can be found which is much more attainable for fans. So resale prices do come down but is there a risk of being too late?

The risk of resale

Buying resale tickets has become very common as concerts and events sell out in minutes and people take to selling their ticket on, often for a higher price.

Buying on resale comes with a risk factor as they are more expensive than you would have originally paid and the risk of scams is much higher. People have experienced not being able to enter the venue with their resale ticket as it was not an official ticket. Additionally, people find that their tickets never actually existed after paying the money, being left a few hundred pounds down without a chance to see their favourite artists.

The risk of buying from someone on social media could be even higher as buying without a secure site can leave you in danger of sending money or collecting from a complete stranger.

The CMA have ordered the largest ticket selling platforms to offer a more transparent process, including, Viagogo, Stubhub, Seatwave and GET ME IN.

The process will now have to include,

• Information about any restrictions on the view or entry
• If the seats bought together are located together or separately
• Any additional costs that come with buying the ticket
• The price of the original ticket so that the buyer can compare
• Contact information in case anything goes wrong with the tickets

Ticket master have often been named as the most secure site to buy tickets and resale tickets through after the original venue.

How much would you be willing to pay to see your favourite artist and are resale prices unreasonable?

Sunak recently announced the importance of spending on defence and the need to increase the amount of money going into this area.

Why spending is increasing?

Sunak announced with so many conflicts and dangers in the world today the need to pour funding into defence and the military is crucial. The war in Ukraine and the advancement of technology along with Russia’s growing alliances spurred Sunak to make this pledge.

How much is spending increasing by?

A planned increase of 2.5% GDP rising linearly will mean by 2030 the UK will have been spent £75bn on strengthening UK defence.

This is one of the highest levels of spending on UK defence since the Cold War.

What does this mean for the UK public?

The government’s report on the extra spending state a promise for a boost in UK prosperity and economy.

They state that this will support over 200,000 jobs, add £11bn a year to the economy and provide high skilled and well paid jobs to communities across the county.

The Institute for Fiscal Studies had noted that the amount of £75bn which has been pledged can only work if the defence spending is frozen every year from now until 2023, rather than rising in line with the UK’s existing defence spending of around 2.3% of GDP. If this is taken into account the rise will amount to just £20bn from now until 2030, much lower than promised.

The increase will likely be needed to fill current gaps rather that additional support as reported from Chatham House.

This year’s UK Defence Equipment Plan for 2023-33 has a gap of £16.9bn between its requirements and its budget.

The increased spending on defence supports the UK’s armed forces as well as showing that the UK is prepared and able to deal with future advancements however with spending in one area cuts or loans will have to be made and the UK public could suffer.  Cuts could also come from foreign aid spending which is also crucial for millions across the world.

If you are trying to save money and need some extra tips then the 50-30-20 rule could be super helpful to create a budget.

With this rule you will be splitting your income up and assigning each pot of money to a selected category.

This rule will work best if you have a separate savings account so you can keep that away from your spending money and visualise what you have left.

50 - Needs

50% of your income will be spent on your needs and necessities throughout the month.

This includes rent, house bills, car payments, grocery shopping, childcare and anything else that you absolutely need to pay. It would be best to be strict about this section and only put things you couldn’t live without in here, don’t be tempted to pay for any hobbies from this pot.

30 – Wants

30% of you income will be spent on your wants.

This would include any hobbies you have, gym membership or streaming subscriptions. Any days out or social events should also be paid from this pot of money. Also included would be any shopping that is not necessary such as a new dress or watch.

This will help you budget how much you can spend on your wants throughout the month and not be tempted to over spend. This would help you if you have a habit of impulse shopping. You will have a visual of how much you can spend and what will have to wait until next month.

20 – Savings

20% of you income should go into a savings account or an ISA.

Trying to save whilst on a small income or when you have other obligations can be challenging. Using this rule will help you put away a small amount each month and by budgeting like this you will know it can be done.

If you need to change the percentages to fit your situation, say if you have a long list of needs then increase this to 60% and only put 10% in you savings. This still allows you to save whilst not being super low on money at the end of the month.

For example...

If your monthly income is £1,700 and you followed the 50-30-20 rule then you would have,

£850 to spend on your needs list, £510 to spend on your wants and then £340 to put into your savings each month.

The government has announced that they will be increasing the cost of council tax due to the rate of inflation in the UK.

How they calculate your council tax

The cost of Council tax is determined from the valuation of the property from 1991 in England and Scotland and 2003 in Wales. If your property did not exist then it would have a valuation completed by the Valuation Office Agency (VOA). New builds will be compared to similar properties in the area.

The VOA value the property based on…

• Size
• Layout
• Character
• Location

The property will be placed in a band where Band A is the cheapest through to Band H which is the most expensive.

Council tax varies depending on each county and the needs for the area. Your local council will set the price for each band’s council tax bill.

Council needs include, street cleaning, community infrastructure, the police and fire services in your area, street lighting, rubbish collection and more.

How you pay your council tax

If you are moving into a house soon and are unsure how council tax works, there is no need to panic. Once you move into the property you will be sent a letter from the government with your council bill included along with the process to pay it. You will be sent this letter once a year in April when you expected to pay, you should then set up direct debits to ensure this is paid on time.

The payments are usually split into 10 monthly payments form April- January starting from the month you possess the property.

You can pay your bill online, or alternatively there would be pay points in your area, such as, the post office.

Extra costs of buying a house such as council tax is why it is important to understand how much of your salary should be spent on your mortgage so you can afford all the costs included in moving into a house.

Can I get a reduction?

You could be eligible for a reduction or exemption from council tax if you meet the criteria below.

• You are on a low income
• You are a student or live with t a student
• You live alone or are the only adult in the property
• You are a member of the armed forces
• You have a severe mental impairment or live with someone who does
• You have moved into a care home or the hospital

Using a finance app can often be a helpful way to keep on track of your money wherever you are and in a specific way for your needs. Tracking your money shows you how much your are spending and can support you in making a change.

There are many options for free budget apps as well as paid for ones which can help you keep track of your spending and get control of your finances.

Hyper Jar

This app is free to use and download and includes a physical card to use. Upload money onto the card and use it to budget.

The app uses a system of ‘jars’ to budget, you create your categories and how much you put in each one. For example, your grocery jar could have £100 in it and your fuel jar will have £50 so you know this is all you’re supposed to spend on these things.

Hyper Jar includes a feature of linking specific shops to your jar, such as Aldi to your grocery jar and the money will automatically come from this jar when you spend here. You can earn interest when you commit to certain brands too!

You can use their shared Spending jars feature to help balance your finances with a partner or housemate. This also works if you wish to track you kids finances and help manage them.

Using this card allows you to travel without having transaction fees.

There is no option to withdraw cash from an ATM using the Hyper Jar card.

Emma

The standard version of this app is free.

This will link your banking apps so it can analyse the information and patterns to determine and suggest where you could make cut backs.

You are able to set up a monthly budget with Emma and the app will remind you to stick to it.

With the Emma Plus version, which costs £4,99 a month you can link 4 accounts, and have a fraud detection feature, bill reminders and a balance feature so you are reminded how much you have left to spend in your budget.

With the Emma Pro option, which costs, £9.99 you can link unlimited backs, track your net worth and any changes along with create custom categories for your spending patterns.

With Emma Ultimate, which costs £14.99 you can include any business accounts your might have and are able to become more specific with your needs. This is a great option if you have business finances to organise as well as other business finance apps.

Snoop

The app is free however if you want to try out some more features the cost will be £4.99.

Snoop will track all your regular bills and alert you when they are higher than usual and offer your cheaper options to switch to.

The app will also keep an eye out for insurance policies and cheaper phone deals. Once the app knows your routines and where your shop it can suggest discounts and voucher codes for those places saving you money wherever you go.

If you pay £4.99 for Snoop plus this will give you more features such as, tracking your spending from each payday and then create unlimited custom spending ports as well as refund alerts.

Snoop will be helpful for offering cheaper options for your regular items and spends which will save you money each month.

Each year in March or April providers will increase their prices which in the past have added a substantial cost to peoples phone bills.

In 2024 the average increase has been around 7.9% on top of customers’ bills.

Why?

The prices always rise according to the Retail Prices Indec (RPI) or the Customer Price Index (CPI) as well as an additional 3.9% to offset the inflation rate and rising business costs for the provider

This year the RPI was 4.9% and the CPI was 4%.

Which Providers increased their prices?

You should have been given a warning 30 days before the prices increased. Providers are also legally allowing to raise prices mid-contract.

EE – 7.9% increase

O2 – 8.8% increase

Sky Mobile – (Out of contract) 3%

Talk Talk – 4% increase

Which Providers have not increased their prices?

Lebara Mobile has not increased any prices. Often the smaller providers will not rise their prices.

Others will keep their prices stable if you are in a contract or deal with them already.

GiffGaff – For those mid-contract prices have remained the same

SkyMobile - For those mid-contract prices have remained the same

Tesco Mobile – If you are signed up to a Clubcard deal will stay the same

What to do if your bills rise?

Unfortunately if you are mid-contract and your bills rise there is little you can do as exit fees are often high. You should review your contract to determine if exiting would be worth it or not. Also check to see when your contract ends to make sure you can shop around before it ends.

Uswitch has estimated this will have people paying £24.23 more on mobile phone bills.

The cost of living crisis continues to affect households with rising prices in various areas of life.