Overdue Invoices – Top 10 Excuses Debtors Will Use

Overdue Invoices – Top 10 Excuses Debtors Will Try To Use

Every business has experienced issues related to clients withholding payment. Overdue invoices are often a constant headache for business owners. After providing goods or services to a client, it is only right that you should be paid. Having a client delay on payment can be extremely frustrating and burdening.

Most businesses have a late payment and credit control process to handle the matter. This often involves chasing the debt through emails, phone calls or letters. In other cases, it is common for companies to add late payment interest charges on their invoices.

Regardless of the circumstances, every company knows that it is important that their invoices are paid on time.

In cases where a client is refusing to pay outright, it is beneficial to instruct a debt collection agency. Using proven processes, they will be able to enforce the collection of a debt and ensure that your company is not left short-changed.

We have recovered millions of pounds worth of debt resulting from overdue invoices. During that time, we have heard all manner of excuses from determined debtors. Sharing this knowledge can help businesses to recognise the warning signs of a client who is not going to pay.

Top 10 Excuses for Not Paying Overdue Invoices

There are countless tactics a debtor will try to use to avoid paying an overdue invoice. Here are some of the most common we have encountered.

1. Invoice Already Paid

Sometimes, debtors will claim that the invoice has already been paid. Obviously, this is false and is only meant as a delaying tactic by the debtor.

If your client is claiming that they have already paid, ask them for evidence of this. This could be in the form of a bank statement, the payment method they used, or proof that the amount has left their business’s account.

Occasionally, debtors may claim that a cheque was sent but was lost in the post. In this case, you should request the cheque’s number and due date, as well as provide alternative payment options that are instant.

2. Invoice Payment Disputes

Another common reason for unpaid invoices is that the client is disputing them. If there is a dispute, the client must inform you in writing as soon as possible. It is common for this not to happen, and the alleged dispute is just an attempt at delaying payment.

When facing an invoice dispute, you should ask the client for the date when they raised the dispute.

3. “The accounts department has left for the day”

This is a very common excuse that credit control teams and debt collectors hear a lot. Again, this is simply a delaying tactic, and the people that use this are perfectly happy to have you chasing payments forever.

If a debtor is using this excuse, you should instead ask to speak to someone else in a position of authority. Don’t forget to make a record of any conversation and follow up each one with an email or letter.

4. The invoice has not been received

If your debtor is claiming that they have not received an invoice, it is often a spurious