“Oh! My card isn’t working.”
“Unfortunately, I missed the invoice.”
“I’m not satisfied with your work.”
These are some of the most common reasons that arise from customers as reasons for late payments.
Are you a small business owner and expecting to receive advance payments? What motivates you to plan your business effectively, and what discourages you?
Late payments hurt you and create negative cash flow for your business. As a result of negative cash flow, the company’s productivity will decrease, the company will face debt, its expansion process will slow down, and sometimes it will be unable to reinvest.
Therefore, it is imperative to avoid late payments to the company. Continue reading this diary and learn about the excuses for late payments.
Some of the Top Late Payment Excuses and Tips to Overwhelmed Them:
Invalid Invoice Details:
To avoid paying the invoice, some customers may claim that the information you provide on the invoice is inaccurate.
You should check the invoice before sending it to the customer to resolve this issue. If there is an error on the invoice, please correct it by indicating the new payment date and the correct details. To confirm, call or contact the customer by email or text and ensure the details are correct.
By using small business invoicing software, a business owner can create an error-free invoice, benefiting both the business and the customer.
Facing Payment Issues:
The main reason why customers delay payments is because of bill payment issues. Some of the most common customer statements regarding payment issues are: “The bank server remains down”, “my postcard is not working”, “I am outside the station, and there is no network here”, and “There is some problem with my bank account”.
Entrepreneurs are advised not to believe all these reasons. If a client gives these reasons for a delay in payment, talk to him first and clarify whether the reason can be verified. If the problems can be verified, extend the deadlines.
If the issues are non-verifiable, try to grip the state kindly by explaining your condition.
Not Satisfied with the Services:
If the customer is unsatisfied with the goods and services purchased, he usually refuses to pay. “Why should I pay for this unsatisfactory work?” This is a common question for the customer in such a situation.
An effective measure to solve this problem is to collect feedback from customers after they receive the product. After collecting the information, practical steps must be taken to resolve the issue.
As a result, the customer feels happy and satisfied, and trust in your business increases.
Emergency Situations:
Every person in this world faces an emergency. When paying bills, customers can also state that they are in an emergency and cannot pay now.
Some excuses used in emergencies are: “I’m in the hospital” and “I spent all my money on my father’s treatment.” In this situation, the business owner cannot judge whether the customer is telling the truth or lying.
To resolve this issue, first confirm the reason given by the customer. Give him enough time to recover from the emergency. Contact him in a few days, ask about his health and ask when you can pay. If he extends the deadline again, contact him again.
Transferring the Bank Account:
Some customers may transfer their bank account from one bank to another. This process takes some time, and your bank account, cards and relevant payment platforms will remain blocked.
The verification process for bank transfers takes a long time. So when the customer raises such issues, listen to him calmly and give him enough time to pay. Please also ask for the customer’s authentication regarding the transfer process.
Absence of Preferred Payment Platform:
Customers from different regions use different payment platforms. When a payment is delayed, a customer will mainly say: “I don’t use this payment platform.”
Small business invoicing software offers the ability to add multiple payment platforms. Contribution to different payment platforms for your invoices encourages customers to continue doing business with the same brand. Additionally, accepting payments in a customer-friendly manner adds a positive aspect to your company and enables customers to make faster payments.
Forget to Send the Payment Reminders:
Some customers expect to receive payment reminders before the payment is due. Sometimes, a customer may have a busy schedule and forget to make a payment, which results in late fees.
To solve this problem, you can use online invoicing software that sends automatic payment reminders on the due dates. These payment reminders inform the customer about the invoice payment and help avoid late fees.
The cheque is in the Post:
Some customers pay by check. They usually mail the check and can indicate the reason for sending it.
To overcome this issue, ask the customer for the following facts.
Cheque number
Posted Date
Copy of Posted Cheque.
Request the above data as evidence and take appropriate, effective measures.
You can also offer alternative methods, such as using cards for payment and using different online payment methods instead of sending checks.
Charging Prices:
One of the rapid ways to collect late payments is by penalty charges.
If the reasons given by the buyer are not acceptable to the entrepreneur, he can impose a fine so that the buyer pays before the next purchase.
The reasons may be both satisfactory and unsatisfactory in cases of late payment. The entrepreneur must correctly analyze the reason and take adequate measures.
Review the above points, use invoicing software and streamline your payment process.