Late Payments & Payment Terms for SA Small Businesses: Stop Chasing, Start Charging
You’ve done the graft. You’ve delivered. And now you’re chasing money like a kid chasing pocket money. That ends here.
Late payments are draining South African small businesses. It’s not because we’re bad at what we do. It’s because too many clients think we’ll wait. Some don’t pay at all. And we let it happen because we’re trying to be nice.
You’re not running a charity. You’re running a business.
So it’s time to stop begging for your own money and start setting clear rules that actually protect you.
The Problem with “Being Nice”
It starts small. A client asks if they can “just pay you next week.” You agree. Then next week becomes next month. Suddenly, you’ve worked ten-hour days and have nothing in the bank.
The issue isn’t kindness - it’s fear. We say yes because we’re scared of losing work. But saying yes to people who don’t pay is how your business quietly dies.
And don’t think big companies are safer. They’re often worse. You’ll be passed between “accounts payable” and “procurement” for months while you wait for your own invoice to “clear.”
Discounting Doesn’t Build Loyalty
When you start discounting out of desperation, you’re not helping your business. You’re showing clients that your price, and your time, are negotiable.
The ones who demand cheaper rates are often the ones who ghost you when it’s time to pay.
Cheap work attracts cheap clients.
It’s fine to run specials strategically, but never drop your rate because you’re scared to lose a deal. The deal you lose now saves you headaches later.
Set Payment Terms That Work for You
Every job should have clear terms. No exceptions.
Ask for 50% upfront if possible. For service work like web design, marketing, or photography, that’s standard. If you’re selling products or short one-off jobs, it’s trickier - but you can still ask for a deposit or payment before delivery.
For ongoing retainers, invoice ahead of the new month. Work doesn’t start without payment. That’s not arrogance - it’s structure.
Send invoices as soon as the work’s confirmed. Waiting until Friday or month-end just delays your own payday.
And follow up. A polite reminder after a few days isn’t rude. It’s how professionals operate.
When to Offer Payment Plans
Not every client who’s struggling is a bad one. Some genuinely need help - and keeping a good client is worth flexibility.
If you trust them, offer a short payment plan. Something like two or three split payments over a month or two.
Keep it simple. Get it in writing. Include dates and amounts.
But if someone’s constantly “waiting for payday” or “just landed a big job but can’t pay yet,” stop waiting with them. You’re not their overdraft.
If they can’t afford you, they’re not your client.
Debt Collectors Aren’t Just for Big Companies
You don’t have to be a corporation to use a debt collector. Plenty of small businesses use them for overdue invoices.
In South Africa, many agencies charge around 10–25% of the recovered amount, or a flat fee if it’s small. Some only charge if they actually recover your money.
This isn’t revenge. You’re simply projecting yourself. You’ve done the work. You’re owed payment. And sometimes a professional nudge is the only thing that gets results.
If a client ignores your follow-ups for weeks, hand it over and move on. They can deal with someone whose full-time job is collecting money.
You Don’t Owe Anyone Unlimited Time
Chasing payments eats away at your time, energy, and confidence. You can’t focus on growth when you’re stuck chasing invoices from three months ago.
Being firm about payments isn’t being rude. It’s being realistic.
You can’t pay your rent with promises.
Before You Go
You can’t control how South Africa handles payments. But you can control how you handle them.
Set deposits. Get things in writing. Stop discounting. And stop apologising for wanting to be paid.
If you want to keep your business visible and profitable, go read How to Get Seen When You’re Broke.
Because being seen and being paid go hand in hand.
You’re not being difficult. You’re just done funding other people’s businesses with your time.
Want tailored advice that doesn’t beat around the bush?
Hit me up:
📧 sez@sezdg.com
📲 WhatsApp: +27 67 601 0605
🌐 www.sezdg.com