Top 10 Most Common Late Payment Excuses & Their Solution

Why Clients Delay Payments?

When you see late payments, you can’t immediately say this is a sign of a bad client. There are cases in which delays may stem from internal limitations or financial constraints.

Some clients take invoices for granted, especially when the business relationship feels “friendly.” The payments slide down the priority list, which creates a lot of problems for both the buyer and the supplier.

Some clients deal with operational issues such as misplaced invoices in email threads, slow approval hierarchy, or weak internal communication.

So, the point to consider is that most clients don’t delay intentionally; they delay because:

• They think small delays won’t matter
• They are dealing with multiple invoices
• Their approval workflow is outdated
• They have no one to remind them

Top 10 Late Payment Excuses with Solutions

There are many common excuses for late payments, but here are the top 10 most commonly found in day-to-day business operations.

1. “The Invoice Never Reached Us”

We can say this is the oldest and most widely used late-payment excuse that companies use.
In the case of paper-based invoicing, it can be true that the invoice may be lost or never delivered to the company. Similarly, in the case of digital invoicing, the email might be stored in the spam folder or forwarded to the wrong person.

However, in other cases, it’s just an excuse to buy some extra time.

This excuse is not one of the acceptable reasons for late payments on a credit report.

Solution:

To address both paper-based and digital invoicing issues, a common solution is to use invoicing software that tracks your invoice status. Another option is to store invoices in a shared folder where they can never say they didn’t receive them. Lastly, you can send follow-up reminders within 3-4 days of invoicing.

This excuse loses its power when you have proof that you sent an invoice.

2. “We’re Waiting for Approval From the Accounts Team”

This excuse sounds legitimate, and most of the time it is true. When it comes to medium or large organizations, invoice processing is done in multiple layers. First, it goes to the department head, then the finance team, and finally the authorized signatory. So, it is possible that the process is slow and the payment gets stuck.

However, some clients just use it as an excuse to delay without taking any responsibility. They blame the accounts team and play the ultimate safe game.

Solution:

During onboarding, you can ask for the finance or accounts contact (to deal with large transactions). To keep things organized, you can include approval details such as PO number, project code, manager name, deliverables, etc, within the invoice. Lastly, make payment terms very clear and include penalty clauses for missed payments.

When consistent follow-ups are made, approvals are likely to happen faster.

3. “The Payment is Already Processed — It Should Reflect Soon”

This excuse is another way of saying “we haven’t paid yet, but need more time.” Many clients use this excuse to stay away from the pressure, with the hope that you will wait for a few more days before asking again. In some cases, the payment is processed, but without proof, it’s hard to know.

Solution:

You can use payment methods that provide instant confirmation, such as online bank transfers and digital wallets. The next step is to include a note on the receipt to share transaction proof after payment.

Lastly, you can use a bookkeeping, spreadsheets, or invoicing software to mark payments as “pending,” “initiated,” or “completed.” This way, it will be easier to track payment status and to remind clients of late payments.

4. “Our Accounts Manager is on Leave”

This is an old-fashioned delay tactic many companies use when they want more time. This reason sounds professional when the company says “accounts manager is on sick leave,” “on vacation,” or “unavailable due to a long meeting.” When a company has only one person to approve payments, transactions are often delayed.

This excuse comes out many times true, but in some cases, they just want to delay the payment without committing to a date.

Solution:

Before finalizing the deal, you must ask about the company’s payment cycle to avoid all kinds of delays. Must use automated reminders that remind a week before, 3 days before, and on the day of payment to avoid all delays.

5. “We Had a System or Technical Issue”

Companies use this excuse when they don’t want to sound irresponsible but want some extra time. They tend to blame the bank server being down, accounting software errors, or payment gateway failure. There’s no denying that technical issues can happen, but they rarely last for days or weeks.

Solution:

Use modern-day tools that offer multiple payment options, such as bank transfer, digital wallets, PayPal, Apple Pay, and online payments, to avoid such excuses. You can also include a payment link in the invoice to ensure timely payments.

6. “We Are Transferring Our Bank Account”

This excuse is acceptable in many ways, as bank account changes are common and may take time to function fully. Clients may say “under process” or “our banking services are paused.” This excuse can be true, but in some cases, it is just a convenient buffer to push payments to the next week or month.

Solution:

In the invoice, you can offer multiple payment channels so clients can pay easily. Another thing you can do is add payment links within the invoice so the client can pay instantly.

7. “We Are Facing Cash Flow Issues Right Now”

This is one of the few acceptable reasons for late payments that is mostly genuine. Many large-scale businesses, and even reputable contractors, depend on their accounts receivable to pay clients. When they face cash flow problems, the first thing they do is delay vendor payments.

Though this is not true all the time, some clients use it as an excuse to avoid paying on time.

Solution:

Instead of creating one final invoice, use milestone-based billing so this issue never arises. One more thing you can do is set clear late-payment charges so payments are processed on time.

8. “We Need More Time to Verify the Work”

This excuse is very common in creative, consulting, or large-scale development projects. Some clients delay payments by saying they are still reviewing the work delivered, which is acceptable as quality checks are normal. But it must not extend beyond the agreed timeline. The majority of clients use this excuse to stall without officially rejecting the work.

In other cases, it could be possible that the client hasn’t reviewed the deliverables yet and wants extra time.

Solution:

Once the project is finalized with the client, clearly specify the payment terms in the contract. Payment terms provide greater clarity and help ensure payments are received on time, as delays incur additional charges. Another way you can nullify this excuse is by using an invoicing software that stores all work proof, such as logs, timesheets, client approvals, etc.

9. “The Person in Charge is Not Responding / Busy”

This excuse is a deliberate stalling tactic companies use to delay payments. They shift the responsibility to one individual, such as a manager, accountant, etc. The real issue here is that no one wants to take ownership of the payment.

Sometimes it can be possible that the person in charge is genuinely dealing with multiple financial obligations. In other cases, the company could be buying time to deal with unexpected expenses.

Solution:

You should use automated reminders to notify the entire team, including managers, accountants, and project leads, in the invoice emails. This will keep everyone on the same page.

10. “Sorry, We Forgot”

“Sorry, we forgot” is the most common and the most frustrating excuse.

Multiple scenarios can be shown as “we forgot.” Some clients genuinely forget due to a lack of organized finance management systems or no deadline pressure. But in any business world, forgetting shows poor financial discipline, and it shouldn’t happen.

Some businesses rely on deferred payment options offered by banks or vendors, which makes payment delays normal.

Solution:

Take regular follow-ups with clients about payments. Use software that provides payment reminders to minimize payment delays effectively.

How Can Late Payment Excuses Affect Your Business?

Clients may sound professional and polite at the start, but when you ignore late payment excuses, you might damage your business in multiple ways.

Let’s understand how it affects your business.

1. Cash Flow Disruptions

Operating your business becomes very difficult when payments don’t arrive on time. Unable to pay salaries to employees, rent, and subscription fees creates lots of financial stress. Even a few delayed invoices can disrupt the business’s cash flow.

2. Slower Business Growth

Unpaid invoices result in less profit, which affects the entire marketing, hiring, or even investing in new technology or tools. Your pending money won’t allow you to expand freely or take on large projects. It declines the company’s growth as the business becomes dependent on overdue clients rather than actual clients.

3. Extra Administrative Work

When following up with clients for payments becomes routine, the efficiency drops. Sending reminders and updating the payment are extra tasks that could be spent on other billable work.

4. Halt Business Operations

When payments are delayed, businesses are most likely to face cash flow problems when buying materials or paying vendors. This financial strain could force small businesses to pause business operations until the payment is received.

5. Damaged Client Relationships

Repeated excuses build frustration and reduce trust. Miscommunication and arguments could increase when you are not getting payments on time. This makes it difficult to build good client relationships.

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What’s the Best Solution to End Late Payment Excuses?

The smartest way to avoid late payments is to use software that manages all your finances and invoices seamlessly. One such example is Moon Invoice.

It comes with automated payment reminders that notify clients before and after due dates. No more “we forgot” or “didn’t receive it” type excuses.

Invoice tracking is another feature of Moon Invoice, which shows whether the client has viewed invoices or initiated payments. Then comes the automatic recurring invoicing feature, which ensures clients are billed as per the schedule without manual follow-ups.

Moon Invoice transforms your manual workflow into an automated one where records are more organized and excuses disappear.

In Short!

There are good reasons for late payments and bad reasons, too. Excuses related to cash flow or the project are genuine more often than not. On the other hand, excuses such as “we forgot” or “need time to reflect on payment status” create a negative impression.

All of the above-mentioned excuses suggest one thing: manual invoice processing is difficult to manage. Therefore, it is paramount to consider using invoicing software in your workflow.

Moon Invoice is an invoicing software designed to improve financial management for small and medium-sized businesses. You can start your free trial now!

FAQs on Late Payments