We extended credit... now it is a write-off.

That Invoice You Thought Was Fine… It Isn’t

Every business has one. The invoice everyone assumed would get paid. The customer who “always comes through.” The account no one wanted to push too hard. Until one day you open your aging report… and the reality hits. Sometimes this could be many invoices and not just one which is a bigger issue.

Uncollectible.

Whether it is five thousand or fifty thousand or a million dollars, bad debt hurts. It is money you earned, money you delivered work for, money you spent resources on… and money that never arrives.

Here is the truth most business owners do not hear enough:
Uncollectible balances rarely happen overnight. They build slowly, quietly, and they always leave clues along the way. Just be on the lookout always.

Here are the signs business leaders miss before a write-off hits that I’ve found over the past 15 years:

1. Slow, inconsistent payment habits
A customer pays early one month, then two weeks late the next. This is the first warning sign that you need tighter credit oversight.

2. Partial payments without explanation
Short pays usually indicate cash issues. If they cannot afford the full amount today, they will not magically afford it later. Read #1 again…

3. Radio silence on follow-up
If they stop responding to calls and emails, you are not a priority. That balance is now at risk.

Explore the 2025 Marketing Operations Trends

The 2025 State of Marketing Operations Report provides clarity on technology, team structure, data management, and more, as shared by 34 marketing leaders. Are you challenged by audience overlap or tech misalignment? This report covers proven strategies to modernize operations and boost campaign ROI. Download now and lead the way in marketing excellence!

Download the 2025 State of Report

4. Growing credit balance with no review
Extending terms without credit checks, payment history reviews, or limits is how companies end up with big write-offs. Sales loves this one 😀 

5. “We’re working on it” excuses
When a customer wants the product now but delays payment later, that is a balance heading straight toward bad debt.

Bad debt is not just an accounting adjustment. It is profit gone. It is lost cash flow. It is time wasted and it is 100 percent preventable with stronger credit discipline, tighter follow-up, and faster action when accounts start slipping.

If you want to avoid write-offs in 2026, reply to this email. I will help you build a credit process that catches problems before they cost you real money.

Sponsoring the Cash Flow Chronicles today is ROKU!

Thank you for supporting our newsletter. Each time a reader engages with our sponsor’s ad, this directly supports CFC’s mission to be the TOP FINANCIAL newsletter Beehiiv has to offer.

Even if you do not buy a product, subscribe, etc. this greatly supports our mission. Take 5 seconds today and check them out!

Find your customers on Roku this Black Friday

As with any digital ad campaign, the important thing is to reach streaming audiences who will convert. To that end, Roku’s self-service Ads Manager stands ready with powerful segmentation and targeting options. After all, you know your customers, and we know our streaming audience.

Worried it’s too late to spin up new Black Friday creative? With Roku Ads Manager, you can easily import and augment existing creative assets from your social channels. We also have AI-assisted upscaling, so every ad is primed for CTV.

Once you’ve done this, then you can easily set up A/B tests to flight different creative variants and Black Friday offers. If you’re a Shopify brand, you can even run shoppable ads directly on-screen so viewers can purchase with just a click of their Roku remote.

Bonus: we’re gifting you $5K in ad credits when you spend your first $5K on Roku Ads Manager. Just sign up and use code GET5K. Terms apply.

Use code GET5K now

Veteran business owner? Take command of your cash flow and tighten your financial systems. Join The Profit Platoon — a community built for Veterans.