By Duncan Barrigan, founder and CEO, Lunos AI.
Getting paid on time remains one of the most persistent and frustrating challenges in B2B finance.
The majority of invoices are often paid late, sometimes significantly so, and while this is a problem on an individual business level, it’s also something that adds up significantly on the aggregate. For example, as much as $100T in B2B trade is settled after goods and services are delivered. This is a striking number and has significant effects in efficiency as well as the investments businesses are able to make. Late payments also disrupt cash flow and create needless hours of administrative follow up that pull teams away from higher value work.
In my experience as CPO for GoCardless and now founder and CEO for Lunos AI, I have seen firsthand how important this can be. For example, we had one client say that she would pop the champagne if they could get even just a 5% improvement in invoice payments in a month. I think it’s hard to overestimate just how important this can be.
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Making changes here isn’t as hard as might seem, and there are a few important yet simple things businesses can do to get paid faster. I’ve summed them up into three practical strategies finance and accounting teams can use that reduce manual A/R workload.
- Optimize Invoice Timing and Reminder Cadence
One of the simplest changes a business can make is to invoice as soon as work is delivered rather than waiting for a weekly or end-of-cycle batch. Even a short internal delay extends the overall payment cycle, and research consistently shows that shorter invoice-to-issue times correlate with faster payment behavior. Issuing invoices right at delivery eliminates avoidable lag and gets the request into the customer’s A/P workflow sooner.
Shorter, standardized payment terms can also make a measurable difference. While Net 30 has long been the default, many businesses are now moving toward Net 7 or Net 14 terms for recurring or predictable work. Clear expectations reduce friction for both sides and help customers plan their own cash flow accordingly. When appropriate, some companies also include late fees or small early-payment discounts upfront, which the Federal Reserve has noted can improve payment timing in certain industries.
Finally, setting a clear, courteous reminder cadence helps customers act quickly without introducing friction into the relationship. Reminders sent a few days before the due date, on the due date itself, and at predictable intervals afterward (such as 3 days and 10 days past due) keep invoices top of mind and reduce the likelihood of accidental oversight. Most late payments are not intentional… they’re the result of competing priorities. Predictable, polite reminders provide structure that drives action.
One of the partners we work with even articulated this quite well. They shared with us: “what surprised us most was how regular reminders actually improved customer relationships so well. Customers appreciated knowing exactly when to expect invoices and follow ups, and we saw fewer missed payments as a result.”
- Reduce Friction by Offering Multiple Ways to Pay
Payment delays often arise not from unwillingness but from inconvenience. The more steps a customer has to take, such as locating bank details, logging into a portal, and forwarding an invoice internally, etc., the longer the payment sits. Offering multiple, easy-to-access payment options can dramatically improve on-time rates.
One thing we recommend is embedding ACH, card, and digital wallet links directly within invoices or email reminders to streamline the process. ACH in particular has become increasingly popular for B2B payments, with transaction volume reaching record levels.
For recurring relationships, autopay can further accelerate cash flow. A simple ACH authorization eliminates the need for manual approval each cycle and significantly reduces late or forgotten payments. This shift not only improves predictability for finance teams but also helps customers avoid unnecessary follow-up emails and reconciliation delays.
Settling invoices is not actually a payments problem… it’s a communication and negation problem. And because of that, clarity is just as important as convenience. Every invoice and reminder should include clear instructions, a simple payment link or button, and contact information for billing questions. When the path to payment is obvious and easy, customers follow through more quickly, and finance teams spend less time chasing the same invoice multiple times.
- Strengthen Internal A/R Organization and Weekly Discipline
Even with better invoices and more payment options, many A/R challenges persist because internal processes are inconsistent. Creating a weekly rhythm around receivables can help teams stay ahead of issues instead of reacting to them. One effective practice is a dedicated, recurring A/R power hour where invoices are reviewed, disputes are cleared, reminders are scheduled, and aging reports are examined. This habit ensures no invoice sits untouched for too long and provides steady visibility into cash-flow expectations.
It also helps to distinguish between account statements and reminders, as each plays a different role. Statements offer customers visibility into their full account (balances, credits, and recent activity), while reminders highlight what needs to be paid and when. Sending statements on a predictable cadence, such as monthly, allows customers to reconcile their own books more easily, reducing back-and-forth communication and preventing disputes from lingering.
Addressing discrepancies early is another important part of staying organized. The longer an issue sits unresolved, whether it’s a mismatched PO or an adjustment request, the longer cash remains outstanding. A weekly discipline ensures these blockers are cleared consistently, minimizing aging and keeping the payment process moving forward.
For most B2B organizations, the steady application of simple, operational improvements can make all the difference. These small changes add up, leading to improved cash flow, reduced manual work, and stronger customer relationships through clarity and predictability.
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