Running a business comes with numerous responsibilities. Ultimately, the company needs to be profitable, which means clients paying the agreed amounts on time.
Unfortunately, it doesn’t always work out this way, and clients may refuse to pay up, despite you having lived up to your end of the deal. Outlined below are some of the most common excuses that debtors use for not paying up.
No invoice was received
One common excuse that debtors will use is that they did not receive an invoice. This way, they can argue that they did not see the amount due or the payment date. One way to avoid this happening is to use electronic invoices. Paper invoices can be lost or picked up by the wrong person. With electronic invoices, you have a permanent log of all invoices sent and received.
It’s been paid already
It’s not uncommon for debtors to claim that they have already paid. They may claim that someone else from their company made the payment, or that a check was sent recently. While these are possibilities, they are also frequently used as excuses to try and get out of making a payment.
You can avoid this by using the most reliable payment methods possible. Bank transfers can happen instantly, and you will have a permanent log of all transactions. You can also limit confusion by designating a specific team to deal with invoices.
Not being paid for work you have carried out is frustrating. More importantly, it can potentially do serious damage to your company financially. Fortunately, the law allows you to take certain steps to recover payments. Seek legal guidance to find out more about your options.