The verdict in three sentences
Adding a payment link to every B2B invoice costs 3,500 to 10,500 GBP of integration for a London SME, delivered in 4 to 8 weeks. With card, Open Banking pay-by-bank and Direct Debit, plus automatic reconciliation in your accounting software, average payment time falls from 58 days to 35 to 42 days as an order of magnitude. On 3,600,000 GBP of revenue, that frees 160,000 to 220,000 GBP of cash, for fees of 0.5 to 1.8% on the share paid online.
Why your customers pay late
The finance director of a business services SME (facilities maintenance, commercial cleaning, IT services) rarely sees bad faith. Delays mostly come from friction: invoice received by a team that does not pay, bank details to re-key into the banking tool, a forgotten internal approval. The Late Payment of Commercial Debts Act allows statutory interest of 8% above the Bank of England base rate plus a fixed 40 to 100 GBP per invoice, yet few SMEs claim it. A payment link removes the friction: the customer clicks, picks a method and the invoice is settled.
| Payment method | 2026 fees (order of magnitude) | Time to cash | Recommended B2B use |
|---|---|---|---|
| Business card | 1.2 to 1.8% + 0.20 GBP | Next day to D+2 | Invoices < 2,500 GBP, micro-business customers |
| Open Banking pay-by-bank (Faster Payments) | 0.5 to 1% or 0.20 to 0.80 GBP flat | Seconds | Invoices 1,000 to 45,000 GBP |
| Direct Debit (Bacs mandate) | 0.5 to 0.8% or 0.20 to 0.75 GBP | D+3 to D+5 | Monthly recurring contracts |
| Standard bank transfer (details on invoice) | 0 GBP for supplier | Next day after customer releases it | Large accounts using supplier portals |
| Invoice finance (for comparison) | 0.8 to 2.5% + financing charge | D+1 to D+3 | Immediate cash need |
What the integration includes
| Component | Core (3,500 GBP) | Complete (7,000 GBP) | Advanced (10,500 GBP) |
|---|---|---|---|
| Payment link on PDF invoice and email | Yes | Yes | Yes |
| Payment methods | Card + Open Banking | + Direct Debit | + split payment and deposits |
| Automatic accounting reconciliation | CSV export | Sync with Xero, Sage or QuickBooks | + multi-invoice and credit note matching |
| Automated reminders with link | 2 reminders | 4-step sequence | Sequence by customer segment |
| Collections dashboard | Basic | Average days to pay per customer | 90-day cash forecast |
| Delivery time | 4 weeks | 6 weeks | 8 weeks |
Making Tax Digital and the UK consultation on mandatory e-invoicing also matter: plan for the payment link to travel with a structured invoice, which requires coordination with your accounting platform.
Mini case study
Nadia, finance director of a London facilities maintenance SME, invoices 3,600,000 GBP a year to 180 customers, with average payment time of 58 days. She picks the Complete package at 7,000 GBP.
At 6 months, 55% of invoiced value is paid through the link: 30% via Open Banking (average fee 0.6%), 15% via Direct Debit (0.5%), 10% by card (1.6%). Annual fees: 3,600,000 x (0.30 x 0.6% + 0.15 x 0.5% + 0.10 x 1.6%) = about 14,900 GBP. Average payment time drops to 39 days: 19 days gained on 9,860 GBP invoiced per day, i.e. 187,000 GBP of cash released. At her 7% overdraft rate, that saves 13,100 GBP of interest, plus 0.5 FTE of credit control redeployed, worth about 16,000 GBP. Net gain exceeds fees from year one, and the project pays back in under 4 months.
FAQ
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Will large corporate customers pay through a link?
Not all of them: those paying through supplier portals (SAP Ariba, Coupa) keep standard transfers. As an order of magnitude, 40 to 60% of a services SME's invoiced value moves to the link within 6 months.
Is Open Banking really cheaper than card?
Yes. Through a payment initiation provider, expect 0.5 to 1% or a flat 0.20 to 0.80 GBP, versus 1.2 to 1.8% for cards. On a 7,000 GBP invoice, the gap exceeds 70 GBP.
Do we need new invoicing software?
Not in most cases. Xero, Sage, QuickBooks or an ERP producing PDFs is enough, the link is added by API or plugin. Automatic reconciliation alone justifies 1,700 to 3,500 GBP of the budget.
How does this fit with UK e-invoicing plans?
The structured invoice goes through your accounting platform and the payment link sits in the invoice details or covering email. Building this now avoids rework when e-invoicing becomes mandatory.
Can we pass payment fees on to customers?
UK rules ban card surcharges for consumers, and in B2B it usually harms the relationship. Most SMEs absorb 0.5 to 1.8% in fees, offset by the cash gained.
Let's scope your project. Tell us your invoiced revenue, average payment time and invoicing software: we will price an integration delivered in 4 to 8 weeks. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
