Invoice Disputes: Collect The Money Owed

Collecting During a Dispute

Time is the enemy in commercial collections. That’s just as true when there’s an invoice dispute on the table. The faster you act on it, the more likely you are to get paid … the longer you wait, the less money you’re likely to get.

Keep in mind: when a customer comes to you with a dispute right away, he probably has a valid argument. But the customer that sits on a dispute for a long period of time is probably just stalling for more time.

Patience is required in order to distinguish which group he falls into: the valid argument group or the stalling group. Listen to the backstory before you make a judgment.

Every dispute has its own story. By finding out what it is, you may learn enough to save you the hassle of a full-blown disaster that ends up in court. You may also find that there is a portion of the amount owed that your customer doesn’t dispute. Go ahead and collect the undisputed portion immediately. Get that out of the way so you can tackle the rest.

There are cases where an unhappy customer just wants to be heard. Maybe a little mix up on your end turned into a big deal on his end. And if acknowledgement of an error is really all he’s after, he’ll reveal it to your listening ear. This will give you a golden opportunity to not only make it right and keep a customer, but to also fix any trouble spots in your processes so you avoid this in the future.

Sometimes a customer’s complaint stems from a miscommunication from a salesperson. Your customer may say your salesperson communicated terms that differ from your policy. However, you probably know your salesperson well enough to know if your salesperson is at fault. Either way, you know it’s time to go back over your credit terms with your customer.

In cases where you conclude your customer’s complaint is valid, modify the invoice and collect the new amount. If you conclude that the dispute has no validity, be prepared to make your case with calm professionalism.

Disputes don’t always lead to unresolvable conflict! Once you know the full story, you may find the fix is an easy one.