Should MSPs use direct debit?

Yes. Direct debit is the most reliable way to collect recurring contract and licence fees on time.

Can I suspend IT services if a client does not pay?

Only if your contract allows it and you give the agreed notice. Avoid actions that could breach data protection duties or block access to the client's own data.

How should I bill hardware for clients?

Ask for payment, or at least a deposit, before placing the order so your cash is not tied up in equipment.

Can I charge interest on late IT invoices?

Yes. Under the Late Payment Act you can claim base rate plus 8% interest and fixed compensation from business clients.

What if a direct debit fails?

Notify the client the same day with a payment link, retry if your provider allows, and escalate if they do not respond.

Does AutoSettle work with GoCardless?

Yes. AutoSettle integrates with GoCardless and with Xero, QuickBooks and Sage to chase overdue invoices automatically.

How do I stop funding clients' Microsoft 365 and cloud licences?

Bill licences monthly in advance by direct debit, or annually in advance for annual commitments, so the client pays before your distributor bills you. Review licence counts monthly so invoices match what you are charged.

What is a reasonable payment term for IT project work?

Many MSPs take a deposit of 25–50% at kick-off, with the balance on milestones and final invoices due in 14 to 30 days. Shorter terms suit smaller clients; larger clients may insist on their own terms.

Credit control for IT and managed service providers

Credit control for IT and managed service providers means collecting recurring contract fees by direct debit, getting hardware and licences paid before ordering, billing projects in stages, and chasing overdue accounts quickly. Because MSPs pay suppliers and licence vendors monthly, automated reminders and a clear suspension policy protect margins and cash flow.

Managed service providers and IT support firms often look like they have predictable income: monthly contracts, per-user fees and recurring licences. In practice, cash flow is squeezed by upfront supplier costs, one-off project work and clients who treat IT invoices as low priority.

An MSP typically pays distributors and cloud vendors on fixed monthly terms. If clients pay late, the MSP funds the gap. This guide explains how UK IT businesses can bring recurring revenue in on time and stop financing their clients' technology.

Collect recurring fees by direct debit wherever possible.

Never order hardware or annual licences before the client pays.

Bill projects with a deposit and milestone payments.

Agree a written, fair suspension policy in your contracts.

Business clients can be charged statutory interest and fixed compensation.