For many New Zealand small businesses, the struggle isn’t just finding new customers. It’s getting paid by the ones you already have.

Unpaid invoices can creep up quietly, building a “90 days +” column that’s far too big for comfort.

But there’s a fine line between staying firm on payments and keeping good customer relationships intact.

Managing that balance is the key to long-term success.

Be clear from the start

The first step in effective debt management actually starts before the sale.

Every quote, order form, and invoice should include your payment terms in plain English, not buried in fine print.

If you expect payment within 14 days, say so. If you apply late-payment interest, make that clear too.

The goal isn’t to scare people off, but to set expectations.

Good customers appreciate transparency.

Invoice promptly and accurately

It sounds basic, but many overdue debts start with a delay or error in invoicing.

Send invoices as soon as work is completed or goods are delivered, and double-check all details — pricing, dates, and purchase order numbers.

A missing PO number or even an inaccurate description of the work done can push payment out by another whole month for some clients.

Efficient invoicing tells your customers you take your business seriously.

Follow up early, and stay polite

Don’t wait 60 days to start chasing payments. A friendly reminder a few days after the due date is often all that’sneeded.

Keep your tone courteous. Most overdue accounts are due to oversight, not intention.

Try something like: “Hi [name], just a quick reminder that invoice #1234 was due last week. Please let us know if it’s already been paid, or if there’s any issue we can help with.”

This shows professionalism, not aggression.

Know when to escalate

If reminders don’t work, it’s time to have a firm but respectful conversation.

Be calm, factual, and solution- focused: “We’d really like to continue working with you, but we do need to get this settled.”

Offering a structured repayment plan can often recover the money without damaging the relationship.

If that fails, using a collection agency or legal pathway might be necessary, but always as a last resort.

Review and refine

Regularly review your debtor list.

Who pays late every month? Are your terms too generous? Do you need deposits for new clients?

Sometimes prevention is more effective than collection.

Keep communication open and systems simple.

The bottom line

Debt collection isn’t about being harsh.

It’s about keeping your cash flow healthy and your business sustainable.

It’s a balancing act between professionalism and empathy.

Never give up

One business I know recently received payment for 3 invoices totalling nearly $10k, which had been overdue for between 21 and 25 months.

Giving up would been easier, but that wasn’t the path taken. Persistence did pay off. Eventually.

If you’d like to know more about setting up an effective, customer-friendly debt collection process, or would like a free, no-obligation meeting to discuss your situation — get in touch today.

We’d be happy to help you keep your overdue column under control and your customer relationships strong.