Our sister company in the UK recently conducted a survey of small businesses to see what excuses they were getting for late payment, a rising problem that’s costing them billions.

1.  Coming in first: “The check signers are on vacation/out of the office.” At 34%, the classic time buyer is still going strong.

2.  A close second, at 32%, blamed it on the mailman. “It’s in the mail” remains timeless.

3.  Coming in third with 14%, is the more current, and probably truthful excuse: Deflection. Blaming it on the bank.

Talking to our own clients we see the same trends. Although, in recent months, we have seen a 10%-plus reduction in the average number of days outstanding for the receivables we manage. A bit of “strong arming” you may think. But no, it’s based on these tips, which can help make sure you are top of the list when it comes to getting paid:

1.  Get them the invoice on time. No-one can approve or pay what they don’t have.

2.  A light and breezy early call. Just touch base to check with your client’s accounts payable team to confirm they have received the invoice and have what they need. Keep it conversational and quick. The “mislaid” invoice excuses will start to fall away.

3.  Shortly before the invoice is due, put in a follow-up call, again with a light touch. Check to see that they have what they need to pay and whether things are looking good for payment. It’s hard to use the “no-one’s in to sign” excuse when they have already told you it’s all set for Friday.

4.  It’s all about a routine. You will get to know the payment clerks and they will expect your call. You will also get to sense a change in tone when an excuse comes, as it’s harder to brush off someone you have got to know. For those clients who can pay, you will get your client “trained” to get your check into the run regularly.

Expecting some tips about “setting the collection dogs” on debtors? Nope. If your client can pay, and you don’t want to hear one of the top three excuses, these simple tips will help keep your cash flowing.

Any excuses you think should be on the top three or any tips for keeping the cash flowing? Love to hear them.