Cash flow is the lifeblood of any business, and chasing payments you’re owed can be a very challenging task. Clients and customers are likely to present a number of interesting excuses as to why they haven’t paid you on time. Constructing a clear and appropriate response to each excuse will help you achieve your goal: fast payment. Here we outline some of the most common excuses which can be relayed from debtors, and the very best way to respond to them.
“I didn’t get your invoice” .
The most common excuse from debtors is that they failed to receive the invoice you sent. Your best response is to ask for another appropriate email address to resend the invoice too, and also confirm receipt of that email. This new email is great opportunity to reiterate the terms of the payment – i.e. how long they have in which to pay. Secondly, look into why the invoice wasn’t received, if this is in fact the case. Was there a technical mistake? Was it human error? Or would debt collection software be better solution in the future when it comes to managing accurate, automated billing?
“It’s coming”.
The “the money is on the way” excuse is very similar to the old adage “the cheque is in the post”. With the promptness of digital transfers, these delays are unlikely, but of course do occur. It’s reasonable to ask debtors for proof of any payments they’ve made, such as bank transfer evidence.
“I don’t like it”.
Another popular excuse clients and customers adopt to explain why they’re withholding payment is stating they’re unhappy with your goods and/or services. Or they may be unhappy with the contents of the invoice. It’s best to be proactive in this regard, and open up communication channels. It’s also advisable to keep a log and record of all correspondence, so you’re staying on top of the dispute. The best debt recovery software can manage all this correspondence on your behalf, and log all communications during the dispute.
“We’re waiting for payment from someone else”.
Another common late payment excuse is blaming a third party. Many customers claim that until a third party has paid them, they cannot pay you. If this excuse comes your way, your best option is to remain firm. You should still ask to be paid according to the original terms and conditions, and this has not changed. If this doesn’t get you anywhere, find out specifically who authorizes payments, and asked to be kept abreast of when the third party has paid.
Are you struggling to manage your debt collection processes? Lateral’s leading debt recovery software and debt collections software streamlines and automates the debt collection process on your behalf. Reach out and try a demo today, and see how you can vastly improve your organisation’s operational efficiency and cashflow.