Common Late Payment Excuses: What They Mean & How To Solve Them

The month is almost over. As you check the records, you realize there are still many invoices to complete. Some might not get paid on time, and a few could become bad debts. Plus, you carefully scrutinize every cent for budget requests because money is tight. It's that time of the month when you hear the most common late payment excuses.

Late payments happen for various reasons. Customers tend to forget, mistakes on invoices arise, technology issues arise, and economic uncertainties lead clients to request more time. If you're dealing with checks, there's another set of possible delays from when the check is sent to when it's processed.

There are many excuses for late payments, so we decided to count them. Here are the top late payment reasons AR professionals have probably heard, what to do about them, and how to get paid faster.

Here's a quick breakdown of typical excuses and some savvy tips to address them:

1. "We Haven't Received the Invoice": Ensure accurate delivery by double-checking addresses and consider adding a speedy payment portal.
2. "The Company Information Isn't Correct": Opt for digital invoicing to minimize mistakes and delays.
3. "Our System is Down": Offer backup payment options and keep your banking details crystal clear.
4. "The Person Authorizing Payments is OOO": Have a backup contact ready and explore alternative payment routes.
5. "We Already Paid the Invoice": Dive into your records and provide proof of outstanding payments.
6. "The Goods or Services Weren't Delivered": Keep meticulous records and swiftly provide evidence of delivery.
7. "We've Been Having Issues With Your System": Keep your systems up to date and offer hassle-free payment alternatives.
8. "We Only Pay on a Specific Day Every Month": Clarify terms upfront and tweak your invoicing schedule accordingly.
9. "We Are Waiting on Customer Payments So We Can Pay You": Pin down expected payment dates and set up timely follow-ups.
10. "We're Having Cash Flow Problems": Politely probe for payment estimates and options.
11. "The Owner Has Died": Extend condolences and gracefully navigate delayed responses.
12. "We Switched Banks, So There's a Delay": Offer streamlined payment methods and clarify any lingering uncertainties.

To make life easier and payments smoother, consider setting up user-friendly payment portals, automating follow-ups, and nudging clients toward digital payments.

Ready to dive deeper? Read the full blog for more insights and tips on how to avoid the headache of late payments.