You will often read about the ‘late payment culture’, where many businesses only start to think about your invoice when it becomes due for payment. By definition, that culture means your invoice is late before it is ever considered for payment.
Adopting a late payment culture demands its perpetrator be skilled in deception: they must be ready with their excuses for non-payment, and the more plausible the better. We encounter these daily, so we have set out the most common ones and how you might overcome them.
“Invoice, what invoice?”
Among the most common deflections. Send a copy immediately by email or the customer’s preferred method, ask them to confirm receipt, restate your payment terms and the late payment penalties that apply, and tell them what your escalation plan is.
“The invoice’s name, address or balance is wrong”
Check it. If there is a genuine error, amend it, set a new due date and re-issue, then follow up with a call to confirm it is right this time. If the original invoice is valid, get a commitment to pay.
“We’ll pay you when our customer pays us”
Ask for the detail: who owes them, and when do they expect it. Take extensive notes so you know when to chase. You can negotiate a payment plan at this point, or agree a date for payment in full.
“We’ve already paid”
Ask for proof: when was it paid, and who authorised it. A customer who has genuinely paid has every incentive to prove it. The questions reveal the truth quickly.
“We’ve got issues with the goods or service”
Record their concern in detail. Answer it on the spot if you can; if you need to investigate, commit to a date and time to come back to them. Either way, secure their commitment to pay once the concern is addressed.
For services you may hear that they have not yet implemented your recommendations. Rely on your terms and conditions here: delivery means you have completed your contractual obligation, and the invoice is payable.
“We have cash flow problems”
Surprisingly, this is positive feedback — they are not disputing the invoice, only citing a shortage of funds. Negotiate a realistic payment plan that includes an immediate part payment, confirm it in writing, and challenge any default straight away.
“Our system is down”
Ask how long the problem has existed and when normal service resumes. If the answer is vague, ask them to find a workaround. Get a commitment to pay and diary your next call.
“I can’t get the payment authorised”
Ask why, and let them take the strain. If a director is absent, ask where they are and why they cannot authorise by phone or email. If the questioning leads nowhere, ask for the most senior officer present — ideally the company secretary. Either your contact yields, or you have escalated the problem and improved your chances.
“I thought we had 60 days to pay, not 30”
Include payment terms on every invoice so the due date is never in question. Without defined terms, the default in law is 30 days from receipt. Remind the customer that under the Late Payment of Commercial Debts (Interest) Act 1998 you can claim interest and reasonable costs once the invoice is overdue.
“We’ve changed our bank account”
A legitimate reason for a very short delay only — any business will have contingency plans for a switchover. Ask for proof, discuss alternative payment methods, and agree a call-back within two working days.
We have years of experience resolving excuses for late payment. Tell us what is outstanding and we will tell you whether it is worth pursuing.
