The late-payment excuses every credit head hears, and the responses that work

How to read a late payment excuse (or a delay-payment request)

An excuse is information. It tells you whether the customer has a real obstacle (a process, a person, a dispute), is testing whether anything follows a delay, or is raising a dispute badly. The response is nearly always the same shape: acknowledge it, ask for the specific detail that makes it checkable, set a date, and record what was said. Below are the twelve we hear most, with what each usually means and the reply.

1. "The payment has been released; it must be in process."

Usually: a test, or a genuine process delay. Reply: "Thank you — could you share the UTR or cheque number so we can trace it?" A released payment has a reference. No reference, no release.

2. "Our accounts person is on leave / has left."

Usually: real, and temporary. Reply: "Understood — who is authorising payments in their absence, and can we speak to them today?" Payments do not stop because one person is away.

3. "We're waiting on a payment from our own customer."

Usually: cash-flow stress. Reply: "I understand. Let's agree a date that works and a part-payment now against the undisputed balance." Do not accept their customer's timeline as yours.

4. "There's a dispute on the invoice."

Usually: a real issue, or a small one used to hold the whole balance. Reply: "Which line, and what is the amount in question? We will resolve that line this week; please release the undisputed balance meanwhile." A ₹1 lakh dispute does not hold ₹9 lakh.

5. "We never received the goods / the invoice."

Usually: a documentation gap on your side, or a test. Reply: attach the proof of delivery with the receiver's signature or photo, and the invoice, and ask for the date. This is why POD tagged to the invoice matters.

6. "The rate on the invoice is wrong."

Usually: a real reconciliation issue with the salesperson. Reply: "Please send the agreed rate in writing and we will reconcile within two days. The balance at the agreed rate is due now."

7. "Your salesperson promised a discount / credit note."

Usually: sometimes true. Reply: "I'll confirm that with [salesperson] today. Please share any written confirmation you have." Then ask your salesperson, in writing.

8. "We'll pay when the next order is delivered."

Usually: weight. Reply: "The account is on hold for new orders until the overdue balance is cleared — that is our standard policy. Once it is cleared the order ships immediately." The credit block answers this one.

9. "Send the cheque collector next week."

Usually: a delay. Reply: "We can do an online transfer today — here are the details. If a cheque is preferred, our collector will be there on [specific day]; please have it ready."

10. "The GST / tax issue has to be sorted first."

Usually: a reconciliation issue, occasionally real. Reply: "Which invoice and what is the mismatch? We will correct it within [n] days. The base amount is not affected and is due now."

11. "The director has to approve it and he's travelling."

Usually: a delay. Reply: "Understood. When does he return, and can we have written confirmation of the payment date from you meanwhile?" Record the date.

12. "We're facing a cash crunch — can you wait a couple of months?"

Usually: honest, and a warning sign. Reply: "Thank you for telling us. Let's set a structured plan — [n] instalments, dates fixed, in writing — and keep the account on hold for new credit until it is met." A customer in difficulty who is honest about it deserves a plan; the plan deserves a document.

When the excuses stop mattering

When the same account has used three of them. At that point the question is no longer what the customer says but what the consequence is — and the account belongs in third-party recovery, with every one of these conversations already on the file.

Sources and regulation

Thresholds, limitation periods and procedures change. This guide describes the position as generally understood at the time of writing and is not legal advice; confirm the current rule before acting.