The most common excuses for unpaid invoices, according to research - businesses have lost BILLIONS

Research gathered by the UK’s leading Business debt collection agency specialists, Federal Management, businesses across the country are facing an increasing number of excuses from clients who fail to pay on time.

This can cripple cash flow, hinder growth, and cause significant financial strain on businesses of all sizes.

Understanding the most common excuses given for delayed payments, that are used time and time again, can help business owners take proactive steps to protect their revenue.

While some delays are genuine, many businesses are simply stalling in an attempt to avoid paying what they owe.

Marc Curtis-Smith, Managing Director of Federal Management said: "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.”

1. “We Haven’t Received the Invoice”

One of the most frequently used excuses that many businesses claim is that 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.

However, always sending invoices promptly and following up with a confirmation email can help with the problem - and 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 cash flow 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.”

Requesting proof of payment, and setting a firm deadline date for funds to clear can ensure costs can be paid.

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.

However, business operations should not stop due to staff absences - and you should ask if an alternative payment method is available 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.”

Therefore, businesses should be enforcing 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.

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.

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 counterproductive.

The preferred option for many businesses in 2025 is to work with a professional, accredited debt collection service - and Federal Management has provided a professional and regulated solution to recover outstanding debts for over 20 years.