How PR agencies can improve collection from delayed campaigns

Key takeaways

• Clear contracts and upfront payments are your first defence. Define payment terms for delayed campaigns in your agreement and consider taking a deposit before work begins.
• Proactive communication is non-negotiable. Don't wait for an invoice to be late. Have a structured invoice follow-up strategy that starts before the due date.
• Formalise your process with written debt collection policies. A clear, step-by-step plan removes emotion from chasing payments and protects client relationships.
• Protect your cash flow by forecasting for delays. Assume a portion of your revenue will be late and maintain a cash buffer to cover operational costs.
• Specialist accountants understand agency payment cycles. Working with accountants who know PR can help you set up robust systems and improve collection rates.

Why is PR agency late payment management so critical?

PR agency late payment management is critical because your cash flow depends on it. Unlike product businesses, you sell time and expertise. When a client delays payment for a campaign, you've already spent the money on your team's salaries. Without a system to manage late payments, your agency's financial health is at the mercy of your clients' accounts payable departments.

Delayed campaigns add a layer of complexity. The client might argue the campaign hasn't "launched" or results aren't in yet. This creates a perfect excuse to delay your invoice, even though your work is complete. Managing this requires specific strategies that go beyond standard invoicing.

Good PR agency late payment management isn't just about chasing money. It's about professionalising your finances. It shows clients you run a serious business. It also ensures you have the cash to pay your team, invest in growth, and weather unexpected challenges.

How can PR agencies prevent late payments before they happen?

The best way to manage late payments is to stop them from occurring. This starts with your commercial agreements and how you structure payments. Your goal is to make paying you easy and non-negotiable for the client.

First, review your client contracts. Your agreement must explicitly state payment terms for delayed or phased campaigns. For example, "Fees are due 14 days from invoice date, irrespective of campaign launch date, as strategic and creative development constitutes delivered work." This removes ambiguity.

Consider taking an upfront payment or deposit. For a large campaign, taking 30-50% before work begins is common. This secures your cash flow from day one and commits the client financially. It also filters out clients who are not serious about paying.

Make your invoices flawless. An invoice with incorrect details, missing purchase order numbers, or unclear descriptions will be delayed. Ensure every invoice clearly states what it's for, references the contract, and includes all necessary client processing information.

Use technology to your advantage. Online payment portals like GoCardless or Stripe allow clients to pay with a click. Sending a payment link directly in your email reduces friction. The easier you make it to pay, the faster you'll get paid.

What does a proactive invoice follow-up strategy look like?

A proactive invoice follow-up strategy is a scheduled series of communications that starts before an invoice is due. You don't wait for a payment to be late. You guide the client through the process to ensure it stays on track.

Start by sending the invoice with a clear, friendly email. Confirm the client has received it and ask if they need any additional information for their finance team. This first touchpoint opens the channel for communication.

Set a calendar reminder for 3-5 days before the due date. Send a polite reminder email. You could say, "A quick note that invoice #123 for our Q2 campaign strategy is due next Tuesday. Please let me know if your accounts team needs anything from us to process it."

If the due date passes without payment, your tone shifts slightly. Contact the client on day 1 or 2 overdue. Assume there's an admin issue. Ask, "Could you check with your finance department on the status of invoice #123? It may have been missed."

Escalate systematically. If there's no response after 7 days overdue, pick up the phone. A conversation is more effective than email. Speak directly to your main contact or their finance person. Document every call and email.

This structured invoice follow-up strategy turns a reactive, stressful chase into a calm, professional process. It demonstrates you are organised and expect the same professionalism from your partners.

When should you implement formal debt collection policies?

You should implement formal debt collection policies before you need them. Every PR agency should have a written policy that outlines the exact steps taken when a payment becomes seriously overdue. This protects your agency and removes emotional decision-making during a stressful situation.

Your policy should define clear stages. For example: Stage 1 (1-7 days overdue): Email reminders. Stage 2 (8-14 days overdue): Phone call and email stating that interest may be charged. Stage 3 (15-30 days overdue): Formal letter before action and pause on all further work.

Know your legal rights. In the UK, you have a statutory right to claim interest and compensation on late commercial payments under the Late Payment of Commercial Debts Regulations. Mentioning this in your communications can be a powerful motivator. You can find official guidance on this on the GOV.UK website.

Decide when to use a third-party collection agency. For debts over 60-90 days old, the cost of using a professional collector is often worth it. They recover funds you might write off and free up your team's time. Include this threshold in your policy.

Having these debt collection policies in place means you're not making it up on the spot. You can calmly inform the client of the next step in the process, which often prompts payment before you have to take more serious action.

What cashflow protection steps should every PR agency take?

Every PR agency should take cashflow protection steps that assume some payments will be late. This means building a financial buffer and managing your resources so a delayed invoice doesn't cause a crisis.

First, calculate your cash runway. How many months can you operate if all clients stopped paying today? Aim for a buffer of at least 1-2 months of operating costs. This gives you breathing room to manage late payments without missing payroll.

Diversify your client base. Relying on one or two large clients for most of your income is risky. If a major client delays a campaign payment, your entire agency feels it. Work towards having no single client represent more than 20-25% of your revenue.

Track your debtor days religiously. This metric tells you the average number of days it takes to get paid. Calculate it by dividing your total accounts receivable by your average daily sales. The goal for PR agencies is often under 45 days. If your number creeps up, it's an early warning sign.

Consider invoice financing cautiously. Services that advance you a percentage of an invoice's value can provide immediate cash. However, they come with fees that eat into your margin. Use them as a last resort, not a standard part of your cashflow protection steps.

The most important step is to forecast for late payments. When you do your monthly cash flow forecast, don't assume all invoices will be paid on time. Model scenarios where key payments are 30, 60, or even 90 days late. This shows you the real risk and helps you plan accordingly.

How do you handle the "campaign isn't live yet" excuse?

You handle the "campaign isn't live yet" excuse by addressing it in your contract and invoicing structure before work begins. This common challenge requires you to separate payment for strategy and execution from the final campaign launch date.

Structure your fees into phases. Invoice for the strategy and planning phase upon delivery of the plan. Invoice for the execution phase upon completion of asset creation and distribution, not upon publication. This aligns payment with the completion of your work, not external factors like a journalist's timeline.

Educate your client. Explain that your agency's costs are incurred when your team does the work. Your salaries are paid monthly, regardless of when a feature article goes live. Framing it as a standard business practice, not a personal request, makes it more acceptable.

If a client still refuses to pay, refer back to the contract. A well-drafted agreement will have a clause stating that fees are due for completed work stages. Your leverage is your willingness to pause further work until the outstanding invoice is settled.

For retainers, this is less of an issue. Monthly retainer fees are due for access to your team and ongoing counsel, not for specific outputs. This is one reason why moving clients to a retainer model improves PR agency late payment management significantly.

What tools and systems improve payment collection?

The right tools and systems automate reminders, provide visibility, and make paying easy. Using technology transforms payment collection from a manual chore into a streamlined process.

Use cloud accounting software like Xero or QuickBooks Online. These platforms allow you to schedule automatic invoice reminders. You can set a rule to email a polite reminder 3 days before an invoice is due, and another if it becomes 7 days overdue. This ensures consistency.

Implement an online payment gateway. Integrating GoCardless (for direct debit) or Stripe (for card payments) with your accounting software lets clients pay instantly via a link in the invoice. Reducing the steps to payment dramatically speeds up collection.

Maintain a simple but effective tracking system. This could be a dedicated spreadsheet or a CRM module that lists every outstanding invoice, its due date, the value, and the date of last follow-up. Review this dashboard weekly as part of your management routine.

Consider client portal software. Some tools allow clients to log in, view all their invoices, download statements, and make payments in one place. This professionalises the experience and gives clients no excuse for losing an invoice.

The goal is to have systems that do the heavy lifting. Your team should only need to step in for exceptions, not for every single invoice. This saves time and reduces the emotional toll of chasing money. For help setting up the right systems, specialist accountants for PR agencies can provide tailored advice.

When is it time to stop working for a late-paying client?

It is time to stop working for a late-paying client when the risk to your cash flow outweighs the value of the relationship. Continuing to deliver work while not being paid is essentially giving the client an interest-free loan funded by your team's effort.

Set a clear internal rule. Many agencies operate a "stop work" threshold. For example, if a client has any invoice more than 30 days overdue, all further work is paused until the account is brought current. You must communicate this policy to clients in advance.

Evaluate the client's history and value. Is this a one-off issue with a otherwise good, long-term client? Or is it a pattern with a difficult, low-margin client? The former might warrant a conversation and a payment plan. The latter might signal it's time to part ways.

Formalise the pause in writing. Send an email stating that, per your terms of business, work is suspended until the outstanding balance of £X is settled. Be polite but firm. Often, this action alone triggers immediate payment.

Protecting your agency's financial health is your primary duty. Letting one client consistently damage your cash flow prevents you from paying your team reliably and investing in growth. Letting go of a problematic client often frees up capacity for a better, more professional partner.

How can specialist financial advice help your PR agency?

Specialist financial advice helps your PR agency by providing frameworks, systems, and an external perspective tailored to your industry's unique payment challenges. An accountant who understands agency economics doesn't just do your taxes; they help you build a more financially resilient business.

They can help you draft robust client contracts and payment terms that protect you from the start. They'll advise on the right commercial structure for retainers and project work to improve cash flow predictability.

A specialist can set up your accounting software with automated workflows for invoicing and chasing. They'll help you establish key metrics to monitor, like debtor days and aged debt reports, so you have a clear picture of your financial health at all times.

They act as a sounding board for difficult client situations. Should you charge interest? Should you pause work? An experienced advisor can guide you based on what they've seen work for other agencies, removing the guesswork.

Ultimately, good PR agency late payment management is about having strong financial foundations. Take the Agency Profit Score to get a clear picture of your financial health across cash flow, revenue visibility, and operations—then you can focus on delivering great PR work with confidence.