Late cancellations - what to do when invoices go unpaid

• Cash flow challenge: My customers sometimes cancel at the last minute and refuse to pay, leaving me with sunk costs for staff, stock, and venue bookings.

• Perfect for: Hospitality businesses, event organisers, or service providers dealing with last-minute cancellations and unpaid invoices.

Novuna helps businesses recover cash from unpaid invoices and bridge cash flow gaps caused by late cancellations, either through our award winning in-house service or by comparing the market to find the best funding fit for your needs.

 We work with providers who understand the hospitality and events industry, help you apply, and make sure you get the right deal to keep your business running smoothly.

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Why late cancellations hurt cash flow

When customers cancel close to an event date and fail to pay any outstanding balance, the costs for staff, stock, and preparation have often already been committed. Without clear cancellation terms or prompt action, these losses can be hard to recover.

Practical steps to take when customers cancel late

• Review your contracts and cancellation terms: Ensure your terms and conditions clearly state cancellation periods, payment schedules, and charges for late cancellations.
  
• Request deposits or staged payments: Taking a deposit or partial payment upfront secures some cash flow and reduces the impact of a late cancellation.
  
• Enforce your payment terms: If the invoice is due despite cancellation, send reminders promptly and follow your credit control process to recover funds.
• Maintain a cancellation waiting list: For high demand services or events, keeping a list of standby customers can help you fill gaps quickly and recoup lost revenue.
• Consider credit protection or invoice insurance: These products can safeguard you against non-payment, especially for large bookings or high value events.

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Funding options to bridge the gap after a late cancellation

Short-term funding, such as quick business loans or invoice finance, can help cover immediate costs when a cancellation leaves you out of pocket. This can keep your operations running while you pursue payment from the client.

How Novuna Business Cash Flow can help

We work with hospitality, events, and service based businesses to recover unpaid invoices and secure funding to cover unexpected losses. Whether through credit control services, debt recovery, or cash flow finance, we’ll ensure you have the resources to keep moving forward.