Late payment is a significant problem for many businesses. Research from the Office of the Small Business Commissioner and the Department for Business and Trade shows that late payments cost the UK nearly £11 billion each year and affect more than 1.5 million businesses.

At My Credit Controllers, we understand how draining late payment can be. It affects your cash flow, your time and your patience. This guide sets out the top ten excuses people commonly use to delay paying what they owe and offers clear, simple steps you can take to deal with each one confidently.

Why Late Payment Happens

Late payment often occurs because the customer is managing their own cash flow problems or they lack proper internal processes. Sometimes the reason is simply poor organisation. In other cases the customer is hoping not to be chased. There are also occasions where an unexpected event genuinely interferes with payment. Whatever the cause, payment must still be collected for services in a reasonable timeframe. 

10 Late Payment Reasons and How to Handle Them

1. “We cannot pay you until we get paid”

This happens when a customer waits for their own clients to pay before settling your invoice. Unless your contract is linked to their incoming payments, they still owe you what is due. It helps to remind them of the terms you agreed to. Asking for a part payment now and arranging a specific date for the rest can move things forward. It is important to confirm anything agreed in writing.

2. “We sent you a cheque”

This one still appears, even though digital payment is now the standard. If you have not received the cheque, ask them to pay by bank transfer instead. Making digital payment your preferred method for all future invoices will help prevent this excuse reappearing.

3. “There is a dispute on the invoice”

Some disputes are genuine although many are raised late as a delaying tactic. Ask for the details in writing. If they did not raise the issue earlier, that is usually a sign that something is not quite right. Encourage them to pay the part of the invoice that is not disputed while you review the rest.

4. “What invoice?”

Customers sometimes claim they never received anything. If this comes up, resend the invoice and ask them to reply to confirm they have it. Remind them that payment terms usually start from when you delivered the goods or services. Using tools that track invoice delivery can also help you avoid this situation in the future.

5. “The invoice is incorrect”

People sometimes say that the name, address, price or purchase order is wrong. If there is a genuine error, correct it promptly and resend. If the invoice is accurate, make this clear and request payment without delay.

6. “The boss is on holiday”

This excuse appears all year round. Ask if someone else within the business is able to approve payments. Suggesting that they add you as an approved supplier ahead of time can also prevent this excuse being used again.

7. “We are dealing with a bereavement”

Sometimes this is genuine and you should always respond with sensitivity. A kind reply along with a request for a realistic time for payment is appropriate. Everything should be kept polite and recorded.

8. “We have gone bust”

Before accepting this, it is important to check the facts. Look the business up on Companies House to see if they have entered administration or liquidation. Ask them for the name of the appointed administrator. It is also useful to watch for signs of financial trouble in the future as late payment often appears before insolvency.

9. “Nobody in accounts is available today”

This usually means the debtor does not want to deal with the invoice at that moment. Ask to speak to someone senior who can approve payments. Arrange a specific time for a call back if needed.

10. “We are changing banks”

Changing banks can slow payments slightly but it should not cause a long delay. Ask when their new account will be active. Offer another way to pay such as a card or online transfer and agree on a clearagree a clear date by which the payment will be made.

Common Late Payment Excuses in 2025

A few excuses have become more frequent in recent years. These include claims that their finance portal is offline, that they are waiting for an updated purchase order, that a director needs to sign something electronically, that they have changed their supplier approval process, or that the payment is scheduled for a future run with no confirmed date. With these excuses the best approach is to ask for clear information, agree a timeframe and confirm everything in writing.

A Simple Framework for Handling Any Late Payment Excuse

There is a straightforward structure you can use each time you chase a late payment. Start by acknowledging what they have said. Then ask questions to get clear details about the delay. Once you understand the situation, agree on a specific date when payment will be made. Finally, send an email confirming what has been agreed. Consistent communication usually prevents excuses from reappearing.

Preventing Late Payment in the First Place

Several practical steps can reduce late payment problems. Make your payment terms clear and visible from the start. Consider asking for deposits or staged payments for larger projects. Send your invoices promptly and give customers more than one way to pay. Running a simple credit check on new customers can help you spot risk before it becomes an issue. Setting expectations early can save you a great deal of follow up later.

When to Escalate to Debt Collection

If a customer regularly delays payment, stops replying or keeps repeating the same excuses, it may be time to escalate the matter. Debt collection can be a professional and calm process. A suitable agency will simply encourage payment and protect your cash flow. Escalation becomes necessary when the invoice is seriously overdue or when you suspect they do not intend to pay.

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In conclusion, managing late payment is difficult and can put real pressure on your cash flow although you do not have to handle it alone. By recognising the most common excuses and responding clearly, you can keep control of your income and reduce wasted time. Whether the excuse is that someone is on holiday, that a cheque is in the post or that accounts are not available, there is always a practical way forward. Clear communication, agreed dates and written confirmation all contribute to smoother payment.

If you are tired of chasing overdue invoices and want reliable support, contact My Credit Controllers for help getting paid promptly and with less stress.