If you’re running a small business in New Zealand, chances are you’ve felt the sting of late payments. You’re not alone — a recent survey from payment provider GoCardless found that 62% of Kiwi businesses believe they’re losing money to late payments, with some estimating losses of over $10,000 a month.

Late payments aren’t just frustrating — they can make or break your cashflow.

Why late payments are such a problem

Healthy cashflow is the lifeblood of any small business. When customers pay on time, you can cover your bills, pay your team, reinvest in growth, and still have some breathing room left over.

But when payments are delayed, everything slows down. Your working capital tightens, supplier bills pile up, and that financial stress starts to creep in. It’s a tough position for any business owner — especially in today’s economic climate.

At the end of the day, your accounts receivable process needs to bring cash in fast so you can keep trading confidently. Here are four practical ways to improve your payment times and strengthen your cash position.

1️⃣ Invoice on time with e-invoicing

If you’re still sending manual invoices, it’s time to embrace automation.
E-invoicing lets you send invoices directly between accounting systems — no printing, no email attachments, no waiting. It reduces errors, speeds up delivery, and can include instant payment links.
In Xero (and other modern systems), you can even set up automatic reminders so nothing slips through the cracks.

2️⃣ Make it easy to pay

When paying is easy, people pay faster.
Offer multiple payment options — such as Stripe, GoCardless, POLi, or direct bank transfers — straight from your invoice. The fewer barriers between your invoice and their payment, the quicker the money hits your account.

3️⃣ Break projects into smaller payments

If you work on large projects, don’t wait until the end to invoice.
Ask for a deposit upfront, then progress payments as you hit milestones. This keeps money flowing into your business regularly and avoids the big “cash drought” that comes from waiting for one lump-sum payment at the end.

4️⃣ Stay on top of overdue invoices

Late payments don’t fix themselves.
Set clear payment terms from the start (for example, “due 7 days”) and have a consistent follow-up system for overdue accounts. Keep a close eye on your aged receivables report — it’s one of your most valuable tools for maintaining healthy cashflow.
If needed, escalate to debt collection early rather than letting debt age past recovery.

Keep the cash flowing

Getting paid faster means less stress and more peace of mind. It keeps your business agile, protects your profit, and gives you the breathing space to focus on growth instead of chasing overdue invoices.

If late payments are hurting your cashflow, we can help.
At Forward Accounting NZ, we work with small business owners to set up simple, practical systems for e-invoicing, cashflow forecasting, and debt management — all designed to get cash in the door faster.

💬 Let’s talk about improving your payment process and boosting your cashflow.
Contact Tania today at info@forwardaccounting.co.nz or visit forwardaccounting.co.nz.