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CREDIT MANAGEMENT How To Settle A dispute About Money Owed By Wasilwa Miriongi D One of the many challenges business owners face is tactfully, but firmly, securing payment from customers who have disputed an invoice which as a result is well long overdue. this handful of more contentious invoice cases by attempting to reach an amicable On countless occasions we have heard payment agreement with the customer as of business owners at a loss with how to quickly as possible. recoup one particular, often substantial, invoice. In our experience approximately Often many millions of shillings are 1 in 10 invoices fall into this category as a left sitting on accounts ledgers because result of a dispute of one kind or another. companies do not have adequate complaint management systems in place. I have seen When this happens, it is tempting to many millions of shillings simply written ignore these invoice headaches (effectively off, as the client has simply not been writing them off ) in order to avoid bothered with responding to complaints or customer conflict and hopefully contain dispute. the problem so that it doesn’t affect future prompt payment for other invoices. This Repeatedly, we see situations where a debt may seem reasonable, but it is a credit has been left for so long that the client and customer relationship has broken down. control trap that should be avoided. These long standing unsettled invoices commonly arise when the customer disputes the amount, or is unhappy with the quality of service/goods, or received By letting these invoices linger all that happens is that it deepens the customers’ unwillingness to settle the bill. Instead, what we advise is acting decisively on uring the Institute Of Credit Management Kenya, meeting held recently, one of the presenters remarked that most of the credit managers keep in their books debts up to even more than three years simply because they are disputed, this brought out the reality that many in the credit department and organizations as a whole lack invoice dispute handling knowledge or mechanism. the goods late and so refuses to pay. Repeatedly, we see situations where a debt has been left for so long that the client and custom- er relationship has broken down. Usually this happens because someone is not dealing with complaints or the client is simply not respond- ing at all to their customer, burying their head in the sand so to say. 76 MAL23/18 ISSUE Usually this happens because someone is not dealing with complaints or the client is simply not responding at all to their customer, burying their head in the sand so to say. I reckon a good percentage of debts can be avoided if you have a decent dispute resolution mechanism in place. A simple paragraph in your documentation or a process customers can follow on your website regarding complaints resolution is all that is needed. Prevention Tips If you are not currently in an invoice dispute,