Excuse 25: Our clients have not paid us yet
The arguemnt is that the customer cannot pay because they themselves have not yet been paid.
|Customer has bad cash flow management and fails to enforce payment terms on their own customers.
|At the end of the day this is hardly your problem - unless you agreed payment terms that depend on when the customer is paid (don't do that) they have to pay on time.
|Customer has agreed longer payment terms with their customer than with their supplier and hence created their own cash flow problem.
|That was stupid and they deserve to pay for their stupidity - maybe they will do things more sensibly in future.
- Obviously you can help your customer by explaining the late payment legislation and that they themselves can expect late payment penalties from their late paying customer (assuming it is a business contract too).
- Crediting the penalty is rather pointless - after all they don't lose out as they too can claim penalties, so what are they complaining about.