Top 3 Excuses for Not Paying an Invoice (And How to Respond)

With up to 85k collections per day, I can tell you we saw all possible excuse to NOT pay our customers at Respaid. I want to share my favorites ones to show that you're not the only one 🙂

1. "We're Struggling with Cash Flow at the Moment"

Excuse: The client, ABC Manufacturing, claims they are currently experiencing cash flow problems.

Response: Express understanding and offer a payment plan limited in time.

Subject: Flexible Payment Options for Invoice #78910 

Dear John Doe, 

We understand that businesses may face cash flow challenges from time to time. 
To assist ABC Manufacturing during this period, we're open to discussing a flexible payment plan for Invoice #78910. 
Please find a payment link where you'll be to pay in 4 time: click here. 

PS: the offer is valid for 2 business days as it required an approval from my leadership.

Best regards, 
Jane Smith Accounts Receivable Manager XYZ Solutions

It’s really important to have a frictionless payment.
By offering a payment link (e.g. you can do this on Stripe), you avoid several emails and it feels there is no negociations possible.
Also: think about limiting this to 2 business days and send follow-up 4 hours before offer ends.

2. "Our CFO Just Left, and We're in the Process of Hiring a New One"

Excuse: The client, Tech Innovations, indicates that they currently do not have a Chief Financial Officer to approve payments.

Response: Offer to work with an interim contact and suggest a timeline for payment. For example:

Subject: Coordination for Invoice #78910 Payment 

Dear Lisa Green, 

I understand that Tech Innovations is currently without a CFO. To ensure a smooth payment process for Invoice #78910, could you please direct us to an interim contact who can assist with payment approval? 
We appreciate your cooperation and look forward to your prompt response to facilitate timely payment to avoid any escalation.

Best regards, 
Jane Smith Accounts Receivable Manager XYZ Solutions

Usually decision maker doesn’t matter if it’s about approval a payment. By asking to be redirected to someone else you help to avoid the excuse + finish your message by mentioning “avoid escalation”.

3. "We're Waiting on Some Big Payments from Our Clients"

Excuse: The client, Creative Designs, is waiting for their own clients to pay them before they can settle their invoice.

Response: Acknowledge their situation and propose a partial payment or a specific payment date. For example:

Subject: Proposed "Pay Later" Payment for Invoice #78910 

Dear Mike Johnson, 
We understand that Creative Designs is awaiting payments from your clients. 
To help manage cash flow for both our businesses, we propose a  payment for Invoice #78910, with the balance to be paid by [specific date] using this [payment link]. 
To benefit this offer, you still have to add your card to the payment link, but be assured you won't be debited today but one [date].
I let you proceed?

Best regards, 

Jane Smith Accounts Receivable Manager XYZ Solutions

Pay Later is a great trick. Once you got the card on file, you’re not only able to charge whenever you want but you can also chance amount to get charged. It’s a kind of warranty you give to yourself in case customer would again ask to pay once they got themselves pay. You can also use Stripe Payment Link on this.

Of course there is some situations where it’s not in the playbook.
Remember to always condition flexible payment to a deadline.
Otherwise, people see your offer as a weakness and later ghost you :/