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The Top Excuses for Late Payments and How to Handle Each One
Late payments are costing businesses billions annually, with the average small business waiting up to three months for overdue invoices. Whether you're an accounts receivable specialist or a small business owner managing collections, you've likely heard the same tired excuses repeatedly. Understanding these common stalling tactics and having professional responses ready can dramatically improve your collection success rates.
Research shows that 36% of businesses attribute late payments to administrative errors, while 18% admit their customers deliberately delay payments as a form of "free finance". The most frustrating part? Many of these excuses follow predictable patterns that savvy AR professionals can anticipate and counter effectively.
"We Haven't Received the Invoice"
This classic excuse tops the list of most common late payment reasons. While sometimes legitimate, it's often deployed strategically just before payment deadlines to buy more time.
Professional Response Script:
"I understand that can happen. I'm sending a copy to your email right now along with a read receipt request. Since our records show the original invoice was sent on [date], and your payment terms are [X days], could we arrange payment by [specific date] to bring your account current?"
Prevention Strategy: Always request email confirmations when sending invoices and use accounting software that tracks delivery receipts. Follow up within seven days of sending to confirm receipt, leaving time to address any genuine delivery issues before payment deadlines.
"The Payment is Being Processed, But the Authorized Signatory is Unavailable"
This excuse became particularly common during remote work transitions, with debtors citing unavailable decision-makers or complex approval processes.
Professional Response Script:
"I appreciate you letting me know about the approval process. However, ensuring timely payment authorization is part of your company's responsibility to vendors. Could you provide me with a specific date when the signatory will be available? If there's an extended delay, would you consider setting up alternative authorization procedures for future payments?"
Key Point: Don't accept vague timelines. Always push for specific dates and remind customers that payment delays affect your business operations too.
"We Only Pay on Specific Days Each Month"
Some companies claim rigid payment schedules that don't align with your terms. While this might reflect their internal processes, it doesn't override your agreed-upon payment terms.
Professional Response Script:
"I understand you have internal payment schedules. However, our agreed terms specify payment within [X days] of invoice date. Moving forward, I'd be happy to work with you to align our invoicing schedule with your payment dates to avoid future delays. For this current invoice, when can we expect payment to process?"
Follow-up Action: Document any agreement to adjust future invoicing schedules, but don't let current overdue amounts slide without firm payment commitments.
"We're Waiting for Our Client to Pay Us First"
This cash flow excuse became widespread during economic uncertainties, with 32% of micro businesses citing delayed customer payments as reasons for their own late payments.
Professional Response Script:
"I understand cash flow can be challenging, and I appreciate your transparency. However, our agreement is between your company and ours, regardless of your customer payment timing. Could we discuss a partial payment today with the balance due when your customer pays? This would show good faith while we work through the timing issue together."
Strategic Approach: Offer payment plans when customers cite cash flow issues but maintain that their customer relationships don't affect your payment agreements.
"There's an Error in the Invoice"
Invoice disputes account for 31% of reported payment delays. While some errors are legitimate, others represent strategic stalling tactics deployed after services are already delivered and accepted.
Professional Response Script:
"I'd be happy to review any concerns about the invoice details. Could you please specify exactly which items you're questioning? I'll investigate immediately and provide documentation. For any undisputed portions, could we arrange payment of those amounts while we resolve the specific items in question?"
Documentation Strategy: Always request specific details about disputed items and provide resolution timelines. Don't let general "error" claims delay payment of clearly correct charges.
"Our Accounts Payable Person Left the Company"
This excuse attempts to create sympathy while deflecting responsibility for payment delays. Staff transitions happen, but they don't eliminate payment obligations.
Professional Response Script:
"I understand staff transitions can create challenges. However, payment obligations continue regardless of personnel changes. Could you connect me with whoever is now handling accounts payable? I'm happy to provide all necessary documentation to expedite this payment and prevent future delays during your transition period."
Escalation Note: If the contact seems genuinely unsure about new processes, ask to speak with their supervisor or offer to help identify the appropriate payment contact.
How Automation Transforms Collections Response Times
Modern accounts receivable automation is revolutionizing how businesses handle these common excuses. AI-powered platforms like Abivo.ai can instantly deploy appropriate response scripts based on excuse categorization, ensuring consistent professional communication while freeing AR teams to focus on complex negotiations.
Recent data shows that automated collections systems achieve 47% higher recovery rates while reducing operational costs by up to 80%. These systems excel at maintaining consistent follow-up schedules, preventing excuses from derailing collection timelines, and escalating cases that require human intervention.
For service-based businesses processing hundreds of invoices monthly, automation particularly shines in handling repetitive excuse patterns. When customers claim they "haven't received invoices," automated systems can instantly provide delivery confirmations and resend documentation. When payment delays cite "processing issues," smart escalation rules ensure appropriate follow-up timing without manual oversight.
Building Your Excuse-Proof Collections Process
The most effective collections operations anticipate common excuses rather than reacting to them. This means establishing clear payment terms upfront, confirming invoice delivery within days of sending, and maintaining documentation that supports your position during disputes.
Essential Documentation Practices:
Use email delivery confirmations and read receipts for all invoice communications
Document all customer interactions with specific dates, times, and commitments made
Maintain clear records of services delivered and accepted to counter dispute claims
Track payment patterns to identify customers who frequently deploy similar excuses
Proactive Communication Strategies:
Set expectations early by including payment terms in all contracts and initial communications. Send payment reminders before due dates rather than only after delays occur. When customers do provide excuses, respond promptly with specific requests for information or payment commitments.
Practical Takeaways for Immediate Implementation
Prepare standard response scripts for the six most common excuse categories, but personalize each interaction with specific account details and payment amounts
Always request specific dates rather than accepting vague promises like "soon" or "next week" when customers provide delay explanations
Document every interaction with detailed notes about excuses provided and commitments made to build accountability
Implement invoice delivery confirmation systems to eliminate "never received" claims before they impact payment timelines
Establish escalation procedures for repeat excuse patterns or customers who consistently deploy similar delay tactics
Consider payment automation options that reduce opportunities for excuse-based delays while maintaining positive customer relationships
Professional collections require balancing firmness with relationship preservation. The goal isn't to win arguments about excuses but to secure payments while maintaining future business opportunities. Well-prepared responses demonstrate professionalism while keeping conversations focused on resolution rather than blame.
Modern AR automation tools transform this process by ensuring consistent professional responses, maintaining detailed interaction histories, and identifying patterns that help predict which customers are likely to deploy specific excuse categories. For businesses managing significant invoice volumes, these systems provide the consistency and documentation necessary to counter excuse-based delays effectively.
Success in collections comes from preparation, documentation, and maintaining professional standards even when faced with creative excuse patterns. By anticipating common delay tactics and preparing appropriate responses, AR professionals can significantly improve both recovery rates and customer relationship outcomes.