Late Payments – Excuses and How to Avoid Them
4th November 2022
In reality, it can be particularly annoying when someone is late, especially when a time has been specified. This can also be said for those suffering from late payments even after the due date has been agreed upon.
Have you provided goods or services to a client or lent money to a friend or family member and failed to be paid back on the payment date?
This article will outline how to avoid or prevent late payments and how to deal with their excuses from them.
Late Payments – Contents
- What Happens When Payments Are Late?
- Common Late Payment Excuses
- Tips for Avoiding Late Payments Issues
- Instruct DCBL if Someone Has Paid Late
What Happens When Payments Are Late?
Regardless of whether you are an individual, or if it is your business that is owed money, late payments can have a negative effect on your finances and cash flow.
Individuals and smaller business owners are likely to experience the impacts of this more as commonly their finances will be less than that of a larger business with higher income.
After all, when you lend money to someone close to you, such as a friend or family member, you expect them to pay you back within a reasonable amount of time. Failing to do this can not only put pressure on your bank account but the relationship between both parties.
When debtors fail to pay on time, they may not realise how much this can actually impact them. They may think they are winning since they have not spent any money, but this isn’t the case.
For example, if money is owed to a company for a car payment or phone contract, then this will impact the credit score of the debtor even if they have refused to pay.
No amount of excuses should stop you from recovering late payments that are rightfully yours.
Common Late Payment Excuses
It is a fact of life that financial difficulty can hit unexpectedly, especially in the current economic climate.
One of the most popular reasons for payments becoming late is due to the debtor experiencing some form of financial issue that has prevented them from paying.
Whilst this could be a genuine reason, it is important to communicate with them properly to resolve the situation (successful outcome of payment).
Alternatively, some excuses may be a ruse for something else, such as having no intentions to pay.
Here is a list of some of the most common excuses for late payments arising:
- “I forgot that payment was due”
- “I am waiting to be paid before I can pay you”
- “The service carried out was not to a good standard so I am not paying”
- “I had no intention of paying in the first place”
No matter which excuses your debtor uses, it is important that you take the necessary steps to get paid.
The longer you leave the payment outstanding, the more of a risk this is to your financial situation.
Tips for Avoiding Late Invoice Payment Issues
It can be exhausting when money is owed to you or your business and may seem there is no reasonable resolution.
Despite the stress that this may cause you at first, hope is not lost as there are ways you can prevent this from happening.
Late invoice payments are preventable with the right measures in place.
DCBL are experts when it comes to debt resolution and as such know the best ways to help prevent the occurrence of late payments.
Get Payment Upfront
This may seem like the most basic tip for preventing late payments, however, getting payment upfront will of course stop this from happening.
If money has been lent to an individual, of course, this is something that cannot be prevented. However, businesses that work off an invoice basis can benefit from taking payment before they provide services.
When payment cannot be made upfront, it may be beneficial that they make this within 30 days of the original due date. If they cannot make this, then further and more serious actions may be taken.
Outline What Will Happen if a Payment Is Late
If payment cannot be taken upfront, it’s best to outline what will happen if they fail to pay on time.
Outlining this at the start of the process should help to reduce the chances of the payment becoming late.
Payment terms can help to outline the consequences of not receiving payments on the due date.
Invest in an Automated Invoicing System
Investing in software that automatically emails the client when payment is due will help to negate invoices from being paid late.
Payment processing software will flag up when invoices are due and also when they are overdue.
If a reminder is sent to the person that owes money, there should be no reason to delay payment.
Instruct DCBL if Someone Has Paid Late
If you have failed to prevent the event of late payments, it is time to contact the professionals.
You may have done everything in your power but sometimes a debtor may simply refuse to pay.
DCBL are here to help with the successful recovery of late payments, ensuring you get your money back.
We have over 20 years of experience within the debt recovery industry. From originally starting out to become the best, we by default became the biggest.
Regardless of the amount you are owed, our one-stop solution for debt recovery ensures you get the result you deserve.