When Clients Push the Limits

RECEIVABLES SCENARIO YOU’VE LIKELY SEEN
Tough talks and how we navigate them

If you’ve ever had a customer delay payments, ignore emails, or challenge invoices that are clearly within terms, you’re not alone. It’s one of the most frustrating and cash-draining situations any business can face.

I’ve been in that position working on behalf of a business with strong receivables processes yet even then, a particular client almost broke the system. This week’s newsletter is about that story. And more importantly, what I did to fix it. If your business is dealing with payment issues, I think you’ll find this relevant and helpful in today’s environment.

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GONE COLD
Customer wouldn’t respond

It started innocently enough. We had a long-standing customer who’d always paid on time and been responsive. Then suddenly everything changed.

• Invoices that were due sat unpaid.

• Emails and reminders went ignored.

• When we finally did hear from them, they were disputing charges that had never been an issue before.

• The cash flow impact was immediate…tens of thousands of dollars tied up, straining operations and stressing the team.

I see this all the time in other businesses. It’s rarely about one big thing. It’s usually a series of small ignored actions: a late payment here, a missed response there, a vague excuse next and if you don’t act fast, it snowballs.

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PROCESS TO FOLLOW
Do these things 🙂 

Step One: Pick Up the Phone
I decided to stop the email back-and-forth. It was time to speak directly so I called the customer. I was professional, but I was direct about the situation. I asked questions, not just about the invoice, but about what was going on on their end. Were they facing cash flow issues? Was there internal confusion? Was this an attempt to delay?

Turns out, it was a combination of multiple factors. They had some new staff in accounting. Their own AR was a mess. They weren’t prioritizing our payment because they didn’t think we’d push back. Here’s a pro tip for you if you work in AR/Collections, be the loudest about getting paid. Always.

This reinforced a key point: in AR, silence is not compliance. Just because a client hasn’t told you something’s wrong doesn’t mean everything is okay.

Step Two: Reinforce the Agreement
After hearing them out, I brought the conversation back to the facts.

• The work was done. Obligations fully met.

• The invoices were correct. No disputes or issues with pricing/rates.

• The payment terms were 30 days, and we were now 45 days past due.

I politely, but clearly, reminded them of the signed contract and the agreed-upon terms. I also noted that continued delays could trigger escalation, including late fees and service pauses and/or legal interaction.

This part can feel uncomfortable—but it’s necessary. Businesses must protect their cash. You don’t have to be aggressive. You just need to be firm and stand your ground. Too many times many fold and give in, and that costs your business.

Step Three: Stay Professional, Always
What surprised me was how much the tone of the conversation mattered. I didn’t accuse and I didn’t escalate emotions. I treated the client as a partner who might have gotten off track—and that approach opened up the dialogue.
We worked out a new payment plan and they made a partial payment within 48 hours. The balance was paid within two weeks thereafter. One other tip is there is “tone” in emails so keep that in mind. You may not mean it a certain way, but it’s taken the wrong way. That’s why calling is easier.

What could have turned into a charge-off or legal battle costing the business thousands ended in a restored relationship and full payment—all because we stayed proactive, professional, and clear.

Takeaways for Your Business
If your business is in a similar spot with customers delaying, disputing, or disappearing here’s what I recommend:

✅ Don’t wait. The longer you delay action, the harder it is to collect.
✅ Call, don’t email. Human connection cuts through avoidance.
✅ Listen first. There may be more going on behind the scenes.
✅ Bring it back to the contract. Terms exist for a reason.
✅ Stay calm and professional. Protect the relationship if you can, but protect your cash flow and business no matter what.

TLDR
For those who just skip through 🙂 

A customer stopped paying. They ignored our emails and started disputing charges. I called them directly, listened to their issues, and reminded them of our agreed terms. We found common ground, created a plan, and got paid in full. You can do the same—with the right process.

If you can’t, see below as it’s time to talk.

Contact me if you’d like to network or partner together. I’d love to chat with you more about the services I offer on the side through Guernsey Consulting. If you do not know, I work full time in Treasury Management and then do consulting on the side. Would love to chat or network with you about it.

Some of those services are listed below that we can help you with!

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