When chasing up late payments, it is important to discover the exact reason why customers are not paying on time, according to an article that appeared on Quick Reference which offers tips on avoiding customers not paying on time. With these tips, we get an idea why some customers are unlikely to meet their payment schedule and settle their debts on or before the due date.
It is important to note that some businesses are late in paying their accounts due to the way their own sales, receivables and inventory cycles are timed. Take note of these cycles and make sure to consider them when extending credit or collecting due accounts.
In some cases too, a business offering products or services may not be a top priority payment for a customer, especially if such products or services are not critical to the customer’s business operations. While this is not a valid excuse not to pay, it is best to take note of this situation when dealing with a customer. 
Customer portfolios also need to constantly be monitored so that changes in a customer’s operations or activities can be identified and recorded. This information is crucial when providing credit or collecting payments.
Lastly, be wary of signs that can give a clue to how a customer will respond to credit collection. When the customer is disorganized in its accounting practices, or has a reputation for not paying on time, it is best to avoid extending credit to such customer.
Overall, getting customers to buy your products or hire your services can do a lot to benefit your business but it is also an advantage if you will know which of these customers can honor their obligations.
