6 Common Invoice Disputes and How To Resolve Them?

Invoice disputes are one thing that no seller likes as they cause payment delays. Sadly, they are far too common to be overlooked in business. Invoice disputes occur when the customer disagrees with and refuses to pay, and the customer can dispute the whole invoice or certain charges on the invoice.

Here are some of the most common invoice disputes you can come across and how you can resolve them quickly.

Unsatisfactory Work

This dispute occurs when the customer is unhappy with your service or product. The best way to resolve this kind of dispute is to take feedback on why they are unhappy and resolve the issue immediately.

Late Delivery

Another common reason for an invoice dispute is the customer receiving the goods later than the estimated time. The best way to avoid this dispute is to keep your customer posted about delivery updates and have proof that the late delivery occurred due to circumstances not under your control.

Never Agreed to Payment

In such cases, the customer disputes the invoice, saying they are unaware of the payment amount or payment terms. The best way to avoid this problem is to have a clear contract written before the sale. The agreement should be clear and easy to understand, and the customer must sign it before you continue with the sale.

Unable to Make a Payment

This situation is more of a problem at the customer's end than yours, but the result is the same: you don't get the payment. The best way to resolve this dispute is to understand why the customer can't pay and devise a payment plan. Most often, it is because the business has a cash flow issue. You should also check their Credit Information Report before signing a deal.

Pricing Disagreements

Another dispute you can face with an invoice is if the customer disagrees with the final price. The best way to resolve and avoid this type of dispute is to keep the customer posted with your billable hours, rates, and additional charges for your services. Even after they dispute the price, negotiate to reach a price point you both agree to.

Invoice Processing Errors

Probably the most common dispute reason is a false invoice. Invoice faults can be incorrect information on the invoice due to clerical errors. In such situations, the best way to resolve it is to go through the invoice line by line with your customer and rectify the mistakes.

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