How to Handle Invoice Disputes

How to Handle Invoice Disputes

For business owners across the country, one of the most frustrating parts of collecting payments is when a client begins disputing an invoice. While this is often an unavoidable part of owning a business, there are things you can do to smooth over this issue and ensure you are paid on time. As an invoice collection agency, we know how to support you during this difficult time. Keep reading as we share our top tips for handling invoice disputes so that you won’t ever be left waiting months for a payment again.  

Your Client is Unhappy with the Work 

When a customer is unhappy, they are unlikely to want to pay you in full for the work. However, the first step to take in this situation is to discuss the reasons for their unhappiness. They might find the work to be unfit for the required purpose, and hopefully, they will be willing to give you another chance. While this is a frustrating experience for everyone involved, with good communication, you can often resolve this between the two parties. 

In some cases, the client simply won’t want to pay for the work. As you’ve completed the work that was requested, as opposed to guaranteeing results, you still have a right to be paid for your work. Just because your vision is different to that of your client, it doesn’t mean you should lose out on the payment. If revisions are included in the contract, ensure you offer the number of revisions promised. Remain calm at all times when dealing with this type of situation and then turn to an invoice collection agency for assistance. 

Damaged or Faulty Goods 

If your business deals with goods that are sent by mail, you may have cases where someone is disputing an invoice upon receipt of the goods. This might be because of a fault or damage, which often occurs in the post. To begin with, ask for proof of the fault by way of an image. If there is an issue with the goods, you’ll want to offer the client a return and replacement. Even if they just ask for a refund, ensure you ask for the original delivery back so that you can check the product. This might not be a one-off issue, and it’s best to check it out for yourself before receiving further complaints. 

Unfortunately, not everyone is honest when it comes to shopping online. They might state there was an issue but still be happy to use the product. A discount is all that is required in situations like this. You’ll need to ensure you receive full evidence before discounting or refunding the client, otherwise, you may simply be the victim of a scam. When it comes to learning how to collect overdue invoices, always keep your wits about you to ensure you aren’t also being taken advantage of. 

The Client Is Unable to Pay 

It’s always a tough situation to find yourself in when the client is no longer able to pay. This could be for a wide variety of reasons, so you need to deal with this situation with some tact. The client may have had a change in their situation since you started working together, so you’ll need to understand the situation and see what you can do to come to an agreement together. By following our top tips to improve your invoice process, you can ensure invoices are always sent on time, which will help to avoid this issue in the first place. You need to make it clear to the client that they will have to pay the balance in full, but you are willing to try and help them. 

If you find that the client is short of cash or awaiting another payment for their work, it might just be as simple as extending the date by a week or so. Otherwise, you could consider setting up instalments so that they can repay their debts over time. While this can be an awkward conversation to have, you need to ensure you have a plan in place to receive the full payment for the work you completed. Some flexibility will help to save the relationship, which is important if you work together frequently. However, if you think they are taking advantage of you, or you aren’t planning to work together again, ensure you are aware of the invoice dispute UK law. Disputed invoice law can help to protect you, and our team will be more than happy to discuss your rights with you. 

There are so many unique circumstances that you might find yourself in when it comes to handling invoice disputes. We recommend taking it case by case, but always remember that you are owed the full amount for the work you complete. Contact us today at 0330 229 1991 or email memberbenefits@directroute.co.uk for more support with handling invoice disputes or to discuss any questions you have about the laws surrounding invoices.