Tell Me More
Late Payment – Top 5 Excuses For Paying Late
It’s that time of the year again and we’re collating our end-of-year selection of favourite late payment excuses. These are some of the best late payment excuses. But be in no doubt, they are just that, excuses.
Someone, somewhere thinks you’re the schmuck that’ll swallow these and leave empty handed when asking to get paid on time...
#1 – I didn’t know you’d asked to be paid!
Time and again, late payers rely on poor credit control processes to claim that they haven’t received that invoice. They can hardly be expected to pay up if they haven’t been asked to, can they?
Solution : use FidoHQ’s automated invoice reminders and callback service to remove any doubt.
#2 – Why do you want to be paid?
It’s laughable, but some clients will still try to insist that those weeks spent on their project were for your benefit, not theirs. This happens a lot in the creative industries. For some reason, large clients feel it’s their right to delay payment or demand discounts just for giving you the privilege of working on a prestigious account.
Solution : At FidoHQ our experience receivables managers know how to speak firmly and fairly with clients to remind them of their commercial responsibilities.
#3 – We only pay on X day terms!
Inevitably X days is a long way in the future! But it’s not your client’s standard terms that count – it’s what’s in the contract. Avoid genuine misunderstandings with clients about what “finished” looks like and the payment terms by setting out the terms of the engagement or project in a contract upfront.
Solution : FidoHQ’s credit control team are experienced in resolving misunderstandings with clients on the phone.
#4 – We’ve lost your invoice (sorry).
"Sorry" just doesn’t cut it. This excuse is beloved of clients who try to shirk their commercial responsibilities by, er, losing the invoice. Of course, “lost” is euphemism. Don’t settle for sloppy administration in your client’s finance department.
Solution : FidoHQ SmartRulesTM pick the optimum time to remind clients of their outstanding bills – and keep reminding with copy invoices them until payment is received.
#5 – The check’s in the post (honest)
Probably the most over-used excuse in the history of business. Make it easy for clients by insisting payments are made electronically (via SEPA, ACH, BACS or CHAPS). Many cloud accounting packages support automatic bank feeds, which pull payments into your accounts automatically.
Solution : FidoHQ will automatically pick up payments from your cloud accounting software so you’re never chasing a payment that’s already been made.
We can help.
If this looks like hard work, consider using a service like FidoHQ to professionally manage your client payments. We can help you navigate the late payment legislation and associated late payment charges.