Every creative agency knows the feeling: you’ve poured hours (and heart) into a project, sent the invoice, and… nothing. Days become weeks, weeks become awkward emails, and suddenly your brilliant work has turned into a cashflow headache.
Late or missing payments are one of the biggest challenges for agencies in the UK. It’s not just frustrating — it’s financially damaging. A healthy client list means nothing if you’re constantly waiting for money that’s already been earned.
Let’s unpack why this happens — and what you can do to protect your business and your sanity.
According to government research, over half of small businesses in the UK experience late payments regularly, and the average small business is owed more than £20,000 at any given time. For creative agencies — where project cycles can be long, costs stack up fast, and retainers becoming less common — that’s a serious problem.
Some of the most common reasons agencies face delays include:
1. Loose or vague contracts
Creative projects often start on a handshake or a short proposal. Without clear terms on payment timing, milestones, and what happens if a client delays, you’ve got little leverage when things go wrong.
2. Clients with weak cashflow themselves
Even well-meaning clients sometimes pay late because they’re waiting to be paid by their clients. The ripple effect is brutal — and creative suppliers are often at the end of the chain.
3. Scope creep and “just one more tweak”
Projects that drag on without proper sign-off make it unclear when the final invoice is due. If the client still considers the project “in progress,” they’ll often hold off paying.
4. Poor internal processes
Agencies sometimes delay issuing invoices, fail to chase overdue ones, or send invoices to the wrong person entirely (we’ve all done it). These small admin slips can cost big money.
5. A culture of late payment
Sadly, some clients simply treat small suppliers as their unofficial overdraft. Larger companies in particular are notorious for stretching 30-day terms into 60 or 90 days, knowing small agencies are unlikely to fight back.
Late payment isn’t just an inconvenience — it’s a business risk.
Luckily, there are practical steps you can take to reduce the problem — and even stop it before it starts.
Always have a written agreement. Include:
If the client knows the rules before the project starts, you’ll have a much stronger footing later.
Creative work is front-loaded — so make sure your cashflow reflects that. Deposits, progress payments, and retainers reduce the risk of being left out of pocket if a client disappears halfway through.
Just because you didn’t get paid upfront last time doesn’t mean you shouldn’t this time.
As your working relationship develops, so should your terms of engagement.
The longer you work with a client, the greater their trust in you — and the greater their reliance on your work. That puts you in a stronger position to move the terms more in your favour: higher deposits, shorter payment windows, or even retainers for ongoing support.
Don’t continually accept the status quo. Your payment terms aren’t set in stone — they should evolve as your reputation, confidence, and value to the client grow.
Send the invoice as soon as the milestone is met, not “when you get round to it.” Double-check the recipient, PO number, and any other details that could hold it up in an accounts-payable queue.
Use software (Xero, Chaser, GoCardless, etc.) to automate reminders and streamline payments. A polite nudge on day 7 and day 14 works wonders — and saves you from those uncomfortable manual chases.
Under UK law, you’re entitled to charge statutory interest (currently 8% plus the Bank of England base rate) and a fixed fee per invoice. Even if you never actually charge it, including it in your terms signals you take payment seriously.
Work with clients who respect your time and processes. Say goodbye to those who constantly haggle, delay, or “forget.” A smaller, reliable client base is healthier than a big one that never pays on time.
The government is introducing new late payment reporting rules and stronger powers for the Small Business Commissioner, meaning larger businesses could soon be held to account. Keep these on your radar — and use them to back up your position.
Getting paid on time shouldn’t be a luxury.
For creative agencies, it’s the difference between thriving and surviving.
So, set clear terms. Use technology to your advantage. Evolve your agreements as your relationships strengthen. And most importantly, back yourself — your work deserves to be paid for promptly, not months later after a dozen reminders.
Get an online quote via our website or book a meeting with one of our experts.