Results-Focused Representation
In Debt Collection, Real Estate And Commercial Law

Common reasons a client may fail to settle an invoice 

On Behalf of | Oct 16, 2024 | Collections

When your business provides goods and services to a client, you expect to be paid for them. This is most likely what was agreed in the initial contract. Once you have completed your end of the agreement, you can send an invoice out as a reminder of payment. 

For the most part, invoices will be paid and you may even go on to form long-term business relationships with clients. However, this doesn’t always happen. A client may fail to settle the invoice, leaving you out of pocket. 

What are some of the more common reasons for clients failing to settle an invoice

The invoice may not have been received 

When a client doesn’t pay, it isn’t always deliberate. They may not have received the invoice. That’s why it is so important to know exactly when your invoices were sent and who they were sent to. If you’re sending paper invoices, make sure this is done via tracked courier services. However, online invoices can be a lot more effective. You can send them instantly, set automated reminders and you can tell when someone has viewed them. 

The amount may be in dispute 

A client may refuse to settle an invoice when they feel like the amount is too high. Nobody likes to be overcharged. Before providing goods and services, it is vital to give an accurate account of your costs. There should be no surprise add-ons that make a client reluctant to pay. All costs should be included in the initial contract. 

The client may be in financial trouble 

It is possible that a client may have overstretched their finances. They simply do not have the money to settle the invoice in full just now. In such instances, you have several options, and you are entitled to the money that was initially agreed. Depending on your relationship with the client, you may be able to negotiate a new payment date or a flexible payment schedule. 

When a client refuses to pay altogether, you do have options. Seek legal guidance to find out more.