Correct a payment promise when the money is no longer coming

The expected receipt has changed

You told a supplier payment would arrive after a customer paid. Now that receipt has been delayed, disputed or withdrawn. Leaving the supplier with the old promise makes the next conversation harder. Establish the present facts and communicate carefully, rather than repeating a date that no longer has a reliable basis.

Check what was actually promised

Read the earlier message and identify the amount, date and any conditions stated. Check the current bank position and the status of the expected receipt. Do not rely on memory when several conversations have occurred. If a formal agreement, legal notice or proceeding is involved, obtain advice about the implications before assuming an informal update will address it.

Keep estimates visibly uncertain

Business.gov.au's cash-flow guidance says estimated figures should be labelled and explained. Apply that discipline to the revised funding picture. Show what is available now and what depends on another event. A customer saying they are trying to arrange payment is different from money received, and should not silently become a confirmed date in your own plan.

Source: business.gov.au: Set up a cash flow statement

Use a concrete hypothetical situation

Imagine a hypothetical contractor promising a $7,000 supplier payment on Friday based on a customer receipt expected Thursday. The customer then reports an unresolved approval issue. The contractor does not know the new receipt date. The responsible update is to correct the earlier expectation and explain the uncertainty, not invent Monday as a replacement simply to end the call.

Keep the communication factual

State which expectation changed, what you can presently confirm and when you will provide the next factual update. Avoid sharing unnecessary confidential information about another customer. If a payment arrangement is being proposed, have its affordability and terms checked. Do not imply that a request for more time has been accepted until the other party's position is clear.

Address the wider shortage

Review whether other promises relied on the same receipt and update the cash picture accordingly. Seek qualified advice if the business cannot meet obligations. Communication cannot supply missing cash, but accurate information gives the next discussion a sound basis. Stop using an unsupported payment date as a substitute for deciding how the financial shortfall will actually be handled.