Top common late payment excuses and how to respond

Late payments are the silent crisis strangling businesses worldwide. These delays don’t just test patience; they threaten margins, stall growth, strain cash flow, erode customer relationships, and ripple through supply chains. Behind every overdue invoice lies a story. Late payment excuses fall into four categories: operational (e.g., lost invoice), technical (e.g., system migration), procedural (e.g., awaiting approval), and financial (e.g., short-term cash shortage). This article reveals the most common excuses for late payments and offers practical communication strategies to tackle them and reduce their impact on your business. Understanding the psychology of late payment excuses, and how to respond with clarity and consistency, has become a survival skill for finance teams in today’s volatile economy. 

1. We’ve lost your invoice 

It sounds innocent enough, and often it is genuine… at least the first time. It’s an easy way to reset the clock without sounding evasive. By shifting the delay to an administrative hiccup, the payer buys time without admitting any financial strain. But repeated claims of missing paperwork are a classic stalling tactic.

2. We’ve already paid the invoice 

It sounds reassuring, almost like the problem is yours. It creates the illusion of compliance while avoiding any real commitment. But without proof, this excuse is smoke and mirrors. The risk is medium to high, especially if the payer stalls on providing evidence.

3. There’s a discrepancy in the invoice 

It sounds procedural, even helpful. Who wouldn’t want to fix an error? Pricing differences, missing references, tax errors, or mismatched quantities are common triggers. Sometimes real, sometimes exaggerated. This excuse can stall payments for weeks if you let it. Genuine disputes happen, but they’re also a convenient shield for delay.

4. We’re disputing part of the delivery or the service 

This is one of the most common reasons buyers give for delaying payment. It´s usually due to quality issues, partial deliveries, or disputes over performance. Essentially, the buyer is expressing dissatisfaction and using it as a shield to avoid immediate payment.

5. The invoice is with another department for approval   

It sounds procedural, almost harmless, just paperwork, right? Don’t underestimate it. This excuse shifts the narrative from financial weakness to internal process, which feels less alarming. If the delay drags on without a clear timeline, the risk is high.

6. The signatory is on leave 

Companies reliant on single approvers use this excuse to buy time, especially when cash flow is tight. It sounds innocent, people take holidays. But when one person’s absence freezes payments, it’s a governance failure. This isn’t just an operational hiccup; it’s a structural risk. If no delegated authority exists, exposure grows, and your receivables are left hanging.

7. Bank holidays have disrupted payment cycles 

A simple, believable excuse. Calendar disruptions are easy to blame and hard to dispute. They create a convenient buffer without raising suspicion, and often they’re true. But remember: this tactic only should works for a day or two. Beyond that, it’s a red flag.

8. The payment run is scheduled next month 

Companies with fixed payment cycles use this excuse to justify delays, even when terms say otherwise. It’s a way to shift the problem from urgency to process. It sounds routine, almost bureaucratic. Just a cycle, nothing personal. But when due dates don’t align with payment runs, your cash flow suffers.

9. There’s an issue with our payment system 

Few excuses sound more plausible than blaming technology. It feels neutral and non-financial. ERP failures, payment portal crashes, or migrations to new systems can happen, but they’re also a convenient shield when cash is tight.

10. We can’t process payments until the audit is complete 

Companies often lean on audit periods because they sound credible and are hard to challenge. It buys time without appearing evasive, and most suppliers hesitate to push back. But don’t let compliance become a blanket excuse for inaction. Audits may slow processes, yet they don’t suspend contractual obligations.

11. We misunderstood the payment terms 

It sounds like a mistake, not malice. Ambiguous clauses or uncommunicated changes give payers room to argue, and delay. It can be genuine, especially in new business relationships or in the event of a recent change in conditions, but sometimes tactical.

12. We’re facing temporary cash flow issues

It’s the classic line that frames the problem as short-term and external, hinting at a quick resolution. But don’t be fooled, this excuse often surfaces when companies are under real pressure: delayed customer payments, seasonal revenue gaps, or sudden expenses that choke cash flow.

13. We’re waiting for a key client payment before releasing yours 

This line surfaces when liquidity is stretched and the payer wants to shift the blame to their own customers. It creates empathy but hides the real problem: they don’t have the cash. When a company ties your payment to someone else’s, it signals structural weakness. The risk is high: dependency often precedes insolvency.

14. The bank is taking longer than usual to clear the payment 

Blame the bank, buy time. It’s a classic. Companies use this line when they want to appear cooperative without committing to a firm date. Spotting the bank adds legitimacy and reduces immediate pressure. Sometimes can be true: cross-border transfers or compliance checks can slow things down, but often it’s just a stalling tactic.

15. We are switching to a new bank 

Who questions a bank migration? It sounds legitimate, even strategic. But behind this excuse often lurks a deeper problem: liquidity strain or operational chaos.

16. The cheque has been sent 

In most developed markets, cheques are almost obsolete for business payments. However, they’re still used in some regions. Blaming postal delays used to feel credible and hard to dispute. After all, there is a physical object on its way. This excuse could buy days, sometimes weeks.

17. The foreign exchange settlement is delayed 

Useful for cross-border transactions. It sounds technical, even inevitable. Companies use FX complexity as a smokescreen because it feels credible and hard to challenge. After all, global payments can be complex. But without proof, this excuse is just another way to stall.

Closing thoughts: three golden rules turning excuses into action 

Late payment excuses are more than words. They’re signals. Each one tells you something about the payer’s priorities, processes, or financial health. The difference between recovering your cash and watching it slip away lies in how you respond.

Three golden rules stand out:  

1. First, demand evidence, not promises. A transaction reference, an approval name, a migration timeline… Proof turns excuses into accountability.  
2. Second, time-box in every conversation. Open-ended delays kill cash flow. Lock in dates, document commitments, and escalate fast when deadlines slip.  
3. Last, but not least, link behaviour to consequences. Credit terms, service levels, and escalation paths should reflect payment discipline. If excuses pile up, tighten the screws. In collections, speed is leverage and structure is power. 

While occasional delays are unavoidable, recurring excuses often signal process gaps or rising credit risk. Having credit insurance and access to professional collections can make all the difference when payment delays start piling up. Atradius Collections helps you recover overdue invoices efficiently and maintain client relationships. They turn uncertainty into security, so excuses, and delays don’t derail your business. 

To explore how to strengthen your own credit risk strategy, get in touch with us and see how we can help you stay ahead.