New Data Highlights the Most Repeated Justifications for Overdue Invoices
Late payments are a persistent issue affecting UK businesses, with billions of pounds stuck in unpaid invoices. According to the Federation of Small Businesses, an estimated 50,000 small businesses close each year due to delayed payments.
Fresh insights from the UK’s leading business debt collection experts, Federal Management, reveal a rise in the number of excuses being used by clients to justify not settling their invoices on time.
Unpaid invoices can put immense strain on business finances, disrupt cash flow, and stall company growth. Identifying the most common excuses can help business owners implement measures to prevent revenue loss.
The latest research indicates that the same justifications for non-payment are repeatedly being used. While some delays are understandable, many businesses intentionally use these excuses to postpone payments and avoid their obligations.
As a result, businesses across the UK are losing millions of pounds every month. While some payments do eventually materialise, countless invoices remain unpaid indefinitely.
Marc Curtis-Smith, Managing Director of Federal Management, remarked: “Every day, Federal Management helps business owners faced with the non payment of invoices, so we thought it was a good idea to compile data relating to the most common excuses to help business owners combat the issue of late payment.”
The Top 5 Late Payment Excuses Used by Businesses
Federal Management’s expert Commercial team has identified the five most common reasons given by debtors for failing to pay unpaid invoices on time.
Here are the main excuses for late payment that business owners should be aware of:
1. “We Haven’t Received the Invoice”
One of the most frequently used excuses is many businesses claim they never received the invoice in the first place. In some cases, this may be a genuine issue caused by emails being lost or misplaced. However, some clients use this excuse as a delaying tactic.
Solution: Always send invoices promptly and follow up with a confirmation email. Using accounting software that provides read receipts or client portals where invoices can be accessed can help prevent this excuse.
2. “The Payment is Being Processed”
Many clients assure businesses that the payment is “in progress” or “scheduled for next week,” yet weeks go by without any funds being transferred. When a client is not paying an invoice, it can hit cashflow hard.
Marc Curtis-Smith advises: “If a client claims that payment is being processed, ask for a confirmation receipt or bank transaction details. If they can’t provide proof, it’s often just a stalling tactic.”
Solution: Request proof of payment and set a firm deadline for the funds to clear. If payments continue to be delayed, escalate the matter through professional debt recovery channels.
3. “Our Accounts Team is Out of Office”
A classic excuse – clients often claim that the person responsible for making payments is on holiday, off sick, or unavailable.
Solution: Politely but firmly remind the client that business operations should not stop due to staff absences. Offer alternative payment methods or ask for another authorised contact to process the payment. If delays persist, consider enlisting a professional debt collection agency.
4. “We’re Waiting to Be Paid by Our Clients”
Some businesses blame their own clients for late payments, claiming they can’t settle invoices until they receive funds from elsewhere.
Marc Curtis-Smith explains: “While cash flow issues can be genuine, it’s not your responsibility to wait until your client gets paid. Businesses should not allow their financial stability to be affected by another company’s mismanagement.”
Solution: Enforce clear payment terms from the start. If this excuse is used frequently, consider requesting upfront payments or deposits to mitigate risk.
5. “We Have Cash Flow Issues Right Now”
While some businesses may be struggling financially, others use this excuse to delay payments without genuine financial difficulties.
Solution: If a client claims financial hardship, ask for a structured payment plan rather than indefinite delays. However, if the excuse continues, it may be time to escalate the case to a professional debt collection agency like Federal Management.
Why UK Businesses need to take Action Against Late Payments
Late payments affect businesses at all levels, reducing working capital, causing operational delays, and even leading to insolvency. A proactive approach is essential to minimise risk and maintain financial stability.
Chasing unpaid invoices can be stressful, time consuming and counter productive. The preferred option for many businesses in 2025 is to work with a professional, accredited debt collection service.
For example, Federal Management provides businesses with a professional and regulated solution to recover outstanding debts. Their proven track record, high success rates, and ethical approach has made them the go-to choice for commercial debt recovery.
Notable Business Late Payment solutions
For over 20 years, Federal Management has been the trusted name for B2B Debt Collection across the UK. Regarded by many as the best debt collection agency solution, their high level reputation speaks volumes of the success they have provided for their clients.
- Industry-Leading Success Rates – Federal Management boasts a recovery rate of up to 90% on undisputed debts.
- Cost-Effective Debt Recovery – Their low commission rates make debt recovery affordable for businesses of all sizes.
- Fully Regulated & Ethical Practices – As an FCA-authorised agency, Federal Management ensures compliance with UK laws and regulations.
- Preserving Business Relationships – Their professional approach ensures that debts are recovered without damaging client relationships.
- International Debt Collection – Federal Management offers global debt recovery solutions for businesses trading overseas.
For Consumer focused Debt Collection, Frontline Collections are highly rated with their first class solution for recovering debts from Private individuals.
Frontline Collections act on behalf of private enterprises such as Healthcare companies, Dental Groups, Veterinary practices and private schools.
Protect Your Business – Act Now
With late payments on the rise, businesses must be proactive in safeguarding their cash flow. When a client isn’t paying their invoice, it will hit cashflow hard for most SMEs.
Recent fiscal studies, well documented in the media have shown that Small Business late payment is responsible for the collapse of thousands of Businesses every year.
Partnering with a regulated UK Debt Collection specialist could help save thousands of SMEs this year.
