Late payments are the biggest cash flow problem for UK trade businesses. The average small business is owed £22,000 in overdue invoices at any given time. For a plumber or electrician, that's the difference between growth and stress.
The good news: how you invoice and accept payment has a massive impact on when you get paid. This guide compares every option and shows you how to get paid the same day.
The Problem with Bank Transfers
Bank transfers (BACS) are free and familiar, but they're slow. The customer has to manually log into their bank, type in your sort code and account number, and remember to do it before the due date. Average payment time: 14–21 days.
Card Payments: Convenient but Costly
Accepting card payments is convenient for customers. They tap a link, enter their card details, and pay instantly. But the fees add up:
- **Standard processors**: 2.9% + 30p per transaction
- **SumUp**: 1.69% in person, higher online
- **PayPal**: 2.9% + 30p (plus currency conversion fees)
- **Gaffer Pay**: From 2.2% + 30p (depends on your plan)
On a £3,000 boiler installation, standard card processors charge £87.30. With Gaffer Pay on the Scale plan, it's £66.30.
Pay by Bank: The Best of Both Worlds
Pay by Bank (Open Banking) is the newer option that more trade businesses are adopting. The customer clicks a payment link, selects their bank, and approves the payment in their banking app. Benefits:
- **Cheaper**: From 0.7% + 30p per transaction with Gaffer Pay
- **Instant**: Confirmed immediately (faster than BACS)
- **No chargebacks**: Unlike cards, the customer can't dispute after paying
- **Higher limits**: No card limit issues on large invoices
That same £3,000 boiler install costs just £21.30 via Pay by Bank on the Scale plan — saving £45 per invoice vs cards.
Customer Portals: The Professional Touch
A customer portal gives your clients a branded login where they can:
- View and approve quotes
- Pay invoices online (card or bank transfer)
- Track job progress
- Access certificates and documents
- Request new work
It's the single best way to look professional and get paid faster. Customers pay 3× faster when there's a "Pay Now" button vs. a PDF with bank details.
Tips to Speed Up Payments
1. **Invoice on completion day** — don't wait a week
2. **Offer multiple payment methods** — card + bank transfer
3. **Automate reminders** at 3, 7, and 14 days overdue
4. **Take deposits** — 30% for jobs over £1,000
5. **Use shorter terms** — 14 days for domestic, 30 for commercial
6. **Make it one click** — payment link in the email, not a PDF attachment
Gaffer Pay
Gaffer Pay combines all of this: one-click invoicing from jobs, customer portal with Pay Now button (card or bank transfer), automatic payment reminders, deposit collection, and Xero/QuickBooks sync. Setup takes 5 minutes. Try our [free invoice generator](/tools/invoice-generator) to see what professional invoicing looks like.