The Top Ten (And The Most Bizarre) Excuses For Late Payment

Better Payment Practice Group (BPPG) sponsor, Alex Lawrie, the business finance specialists, have undertaken a survey exclusively for the BPPG to reveal the most common and bizarre reasons given by companies for paying invoices late. The survey amongst Alex Lawrie's credit controllers revealed the top ten to be as follows:

1. Waiting for the cheque to be signed 23%
2. Lost the invoice, send a copy 22%
3. Cashflow problems, waiting for debtors to pay us 16%
4. Account handler is off sick or is unavailable 15%
5. Cheque is in the post 6%
6. New computer system being installed or has failed 6%
7. Waiting for new cheque book or run of cheques 5%
8. Invoice in dispute ` 3%
9. We pay on 60/90 days, not 30 days 2%
10. You've missed the payment run 2%

The most bizarre excuses include:
" The cheque book has been destroyedin the flood"
"The owner's been buried with his cheque book"
"All names are put in a hat. If yours is pulled out you will get paid. If not, it will stay in the hat until next week"
"The director went for an operation and never returned, as he went off with the nurse"
"The tide is out and the director is unable to get in to pay cheques"
"I do not speak English"
"I cannot make payment until the planets are aligned, which is only twice a year"
"We're in the middle of an armed robbery"
"Not now, it's the office party"

"This survey has a very serious message,effective credit management is vital for your company's cashflow",comments Keith Higley, Managing Director of Alex Lawrie. "Research consistently shows that a company's best chance of improving theirlate payment problems lies in their own hands. Check the credit rating of companies, agree payment terms in advance, cultivate relationships with accounts staff, action queries swiftly and don't delay chasinglate payment."

A handy wallchart giving a step by step guide to managing credit is available free from the BPPG by telephoning 0870 150 2500.

Alex Lawrie is a wholly owned subsidiary of Lloyds TSB Group plc and is one of the UK's leading business finance specialists. The company specialises in improving cashflow to help businesses grow. A tailored suite of financial support includes finance and credit management for both domestic and export markets. Alex Lawrie operates a national network of regional sales and client services centres across the country.
Further details on Alex Lawrie can be found on their website: http://www.alexlawrie.com

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