Unpaid invoices are a challenge for any business but handling the excuses is another problem. The main thing to consider when faced with excuses is that the money is owed to you and that you have the right to seek payment. While many payment issues can be resolved, you might want to consider these excuses and how to handle them.
Problem With Their System
This is considered to be one of the most common excuses. They will claim that the invoice never arrived or that their system is down. So, to deal with this excuse you’ll need to ensure that you include redundancy in your credit control arrangements.
You should call to check that they have received the invoice and that you answer any questions they have. What this means is that should the invoice disappear, you can send another before the payment due date. If they claim that their cheque must have got lost in the post then it can help to offer them a different payment option.
Supply Chain Problems
It’s common for businesses to say that they cannot pay because they have not received payment from a client themselves. Their cash flow is not your problem because you should be paid in full and on time. If you feel as though this is an attempt to delay payment then you should ready yourself to take firm action.
They Raise a Dispute
Payment can often be withheld because customers might feel as though the invoice is incorrect or that they are not satisfied with the goods or services you provided.
In this case, it is important to make sure that you communicate well with clients so that problems can be identified quickly and resolved as fast as possible. So, you should ensure that you make contact with clients once you have sent the invoice to make sure that everything is ok with it. If there is an error, it will give you the opportunity to amend it way before the payment due date. Should they be unhappy with the service or products then making contact with them will enable you to rectify the issue or come to an agreement.
This can range from something simple such as the individual who processes payments being off to something as serious as a fire. If the reason is based on someone being off then you should ask if someone else can authorise the payment or even ask when they will return. If it is a serious issue then you should be sensitive and humane but always attempt to stay in contact with them. If the problem is a fire or flood damage then there is every possibility that they are not going to be able to continue trading in the immediate future. However, you should make sure that you ask them when they will be back trading while you could also offer them to make small payments as every amount that they pay will reduce your risk.