> If your customer is legitimately having a money issues or something else, and they are actually a customer, they will contact you and attempt to work something out.

Depending on customer personality, they may or may not contact you. It's also possible that if they're having money issues that they are freaking out, frozen, and scared to reach out. Though I'm thinking more of very small businesses here where it's more of a personal thing than a corporate thing.

On your payment reminder notes, when it really is late, you can consider putting in some wording that hints at "we know sometimes small businesses can have financial issues" and genuinely suggest there are ways you can help. If it's a small friendly business in a scary time, they might be genuinely relieved that you show that you care... while simultaneously, if it's a business that isn't in financial trouble at all, and was just trying to stretch out their Net 30 to earn extra interest, they may be so outraged by the implication that they are "poor" they they will pay up quickly just to show they are not poor.

It won't help every case, and this only happened very very rarely to me (so I'd defer to the judgment of others). But depending on your customers, this could be a useful approach to have in your toolkit.

If there’s no way to tell between a good customer and a bad customer who does the wrong thing then the difference doesn’t matter