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Best Practices for Late Payments

Best Practices for Late Payments

As a service company, one of the most frustrating aspects of running your business is dealing with late payments from clients. Not only does it impact your cash flow, but it can also damage the professional relationship you have with your client. However, there are ways to handle late payments and still maintain a good relationship with your clients. In this article, we will discuss some best practices for dealing with late payments.

Follow Up Promptly

The first step in dealing with late payments is to follow up with your clients as soon as a payment is past due. Be polite but firm when communicating with your client, and let them know that you are expecting payment. In some cases, clients may simply forget to pay or have their own financial issues, so it’s important to give them the benefit of the doubt and try to work with them.

Be Persistent

If your initial follow-up doesn’t result in payment, continue to be persistent in your communications. Send regular reminders to your client, and consider escalating the matter if the payment is significantly past due. It’s important to maintain a professional tone in all communications, even when you’re frustrated with the situation.

Offer Flexible Payment Plans

In some cases, clients may be unable to pay the full amount owed in a single payment. In these situations, it can be helpful to offer flexible payment plans that allow the client to pay in installments over a period of time. This can help them manage their finances and also increase the likelihood of them eventually paying the full amount.

Maintain a Professional Relationship

Even if a client is late with their payments, it’s important to maintain a professional relationship with them. Remember that your clients are your business partners, and maintaining a good relationship is key to long-term success. Be respectful in your communications and try to work with them to find a solution that works for everyone.

One tool that can help service companies manage their invoicing process is Clerk Invoices for Jira. This app integrates with the Jira project management system and allows users to generate and send invoices directly from Jira. This can help streamline the invoicing process and ensure that invoices are sent promptly and accurately.

In addition to its invoicing capabilities, Clerk Invoices for Jira also provides a tool that allows users to track the status of their invoices and monitor payment statuses. This can be a helpful tool for managing late payments and following up with clients as needed.


In conclusion, dealing with late payments can be a frustrating part of running a service business. However, by following up promptly, being persistent, offering flexible payment plans, and maintaining a professional relationship with clients, service companies can navigate this challenge successfully. Additionally, tools like Clerk Invoices for Jira can help streamline the invoicing process and make it easier to manage late payments.