Late payment is the bane of every small business owner’s life. You’ve done the work, delivered the goods or the services, sent the invoice, and now you’re waiting. Our 2025 late payment survey found that 80% of small businesses experienced late payments in the last twelve months, so you’re definitely not alone. And unfortunately, where there’s late payment, there’s usually no shortage of excuses.

Let’s break down some of the most common late payment excuses, what they really mean, and how you can respond to keep that cash flowing.

1. “We Haven’t Received the Invoice”

This classic excuse may well be occasionally genuine. Invoices do sometimes get lost or buried in a busy inbox, but more often than not it’s a stalling tactic to get you off the phone or delay payment a little longer.

Here’s how you can respond:

• Send a friendly reminder: Always follow up a week before the payment due date. This way, you have a paper trail, and you’ll give your client a gentle nudge.
• Confirmation of receipt: Ask for acknowledgment of receipt when you send the invoice. A quick email or phone call confirming they’ve received it can save you the trouble later on.
• Offer an easy payment method: If your client’s invoice issues are ongoing, encourage them to switch to a direct debit system or an online payment portal. It eliminates the chance for emails or cheques to get lost.

2. “Your Cheque is in the Post”

This old chestnut still pops up from time to time. Cheques are increasingly rare these days, but there are still businesses that insist on paying that way. It’s probably the most popular fob off in the book, not least because the postal service’s reputation for unreliability gives it just enough credibility to be believable.

So, what’s next?

• Proof of postage: Request a “remittance advice” or proof of postage from their finance team. You can also ask them to cancel the original cheque and send a new one via faster, trackable delivery.
• Consider digital payments: It’s worth considering whether you should adopt a policy of only accepting electronic payments. If that’s not something you’re comfortable with, request a BACS payment to cover the missing cheque this time. If it’s a recurring invoice, it’s also worth suggesting a direct debit, which takes the whole process out of their hands and means you get paid on time every time.

3. “We Haven’t Been Paid By Our Clients Yet”

This excuse can come from two different places. Sometimes a client’s payment to you is genuinely tied to their own client paying them first, like a web developer waiting on their client before paying the copywriter they brought in. Your contract is with them though, not their client, and their payment to you shouldn’t be dependent on what their client does or doesn’t do. Sometimes it’s simply a temporary cash flow blip

Here’s how you can respond:

• Insist on payment: Just because your work forms part of a larger project doesn’t mean your payment is tied to payment for that project.
• Negotiate partial payments: If they’re having genuine cash flow issues, ask if they can pay part of the invoice now and settle the rest when their own payment comes through.
• Full payment in advance: You may also want to consider implementing payment terms that request partial payments or full payment up front. This is particularly useful in industries where cash flow delays are frequent.

One important note for anyone working in construction: pay when paid clauses in contracts are illegal, so don’t let anyone use this as a legitimate reason to delay payment.

4. “The Person Who Authorises Payments is Out of the Office”

It’s common for companies to have one person responsible for paying invoices, and when they’re out of the office—well, there goes your payment.

What’s important is this:

• Know who the decision-makers are: Always make sure you have a backup contact for these situations. Confirm the name and contact details of a substitute person who can authorise payments in their absence.
• Get a timeline: If you don’t have a substitute, simply ask when they’ll be back in the office. Then, follow up on the promised date.
• Set clear expectations: For clients you deal with regularly, you might want to ask for the person responsible for payments and set up payment dates to avoid last-minute delays.

5. “There’s a Problem with Your Work”

This is a tough one to deal with—especially when it’s used as a stalling tactic. If the client claims dissatisfaction with your work, they may try to avoid paying until the issue is resolved.

Here’s how you can respond:

• Document everything: Make sure you have all project milestones documented and agreed upon. If there’s a problem, have your records (emails, contract agreements, etc.) ready to back you up.
• Set clear terms: Add a clause in your contracts that addresses complaints. For example, you could say, “Complaints must be made within 7 days of invoice receipt.” This prevents clients from using dissatisfaction as an excuse to delay payments.
• Work with them to resolve it: If they genuinely have a concern, offer to discuss and resolve the issue promptly. But be firm—agree on a clear payment timeline, even if you’re making adjustments.

Final Thoughts: Get Paid Without the Excuses

Late payments are part of the business landscape, but the good news is they don’t have to be a constant roadblock to your cash flow. By being proactive, setting clear payment terms, and responding effectively to excuses, you’ll be better positioned to get paid on time—and avoid future delays.

What could you be doing with that money?

If you’re ready to stop letting late payments impact your cash flow, it’s time to put some of these strategies into practice. Take charge, protect your bottom line, and keep those payments rolling in! Need more tips on managing cash flow or getting paid faster? Let’s talk! We’ve got your back.