Excuse 19: You did not send a reminder
Relevant mainly on long term (e.g. 30 day) invoices where customer does
not pay on time.
|Customer is able to pay in a
short time, but has long payment terms
|When customers try and pay as
late as possible, they need to sit on an invoice for a while before
starting payment, so they need to somehow remember when to do this.
Some customers feel it is the suppliers job to send a reminder. There
is no obligation on the supplier to do so
Experience suggests sending a reminder before the payment is overdue
annoys customers as they were about
to send payment anyway. Sending after it is overdue is
pointless, when you can just send the late payment penalty invoice
|Customer pays on statement not
|Some customers file away
invoices expecting to get a monthly statement from suppliers. Then,
they check the statement and pay. This basically means the customer is
disorganised. There is no obligation on a supplier to send a statement
or reminder or organise the customer in any way.
The invoice is the formal document requesting payment and that is all
that needs to be sent
|Customer does not believe they
have an obligation to adhere to the agreement they have made
probably has a fundamental misunderstanding that they don't have to do
what was agreed, but that it is fair to do whatever they can get away
with and feels aggrieved that they failed to get away with paying late
when they usually do (with other suppliers).
- If a customer has to sit on
an invoice when they get it rather than paying it, then the payment
terms are simply too long. The payment terms are not an interest free
loan with every purchase, but a period of time in which to pay. If the
customer only needs 3 days to make payment, then they should be on 3
day terms (well, maybe 7 day to allow for bank holidays, etc). Suggest
that the payment term be reduced to match the time it takes to make
payment and so avoid the need for reminders.
- It is not a bad idea to have a system that sends statements
anyway, before things are overdue.