make sure you work with your client to get everything in writing before you start doing any work . Detail exactly what will be delivered and when . So whether inperson , over the phone , or via Skype / GoToMeeting , be sure to take notes . As soon as possible ( while it is fresh in your mind ), email your client summarizing the conversation . Ask them to respond if they perceive your meeting differently .
This way , if you have a dispute in the future , you can point back to the email and show them what they agreed upon . At the very least , make sure you communicate all of this information to the client in an email , so a record and time stamp is kept .
Then , if there is a dispute , you can both go back and read exactly what was said . ( It is funny how quickly people forget , and deliberately so sometimes !)
Another great prevention tip is to charge a deposit for your work . While this might not prevent disputes , it will prevent a dispute from delaying or negating your pay . Taking a percentage upfront will guarantee you don ’ t end up working for free , and it also works as a great way to ‘ start the clock ’.
Save all emails and store all email and correspondences , take for instance , if your client tried to claim that you owe them in an effort to get out of an invoice , how do you get the better end of a deal ? One way will be by showing them the conversation history .
Add usage clause on the contract , supposing you printed posters meant for some function for your customer some will
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 .
On countless occasions we have heard of business owners at a loss with how to recoup one particular , often substantial , invoice . In our experience approximately 1 in 10 invoices fall into this category as a result of a dispute of one kind or another
come back to you and claim they didn ’ t use them so no need to pay . For some reason , many clients feel that if they don ’ t use your work , they don ’ t have to pay for it .
So you need to add a usage clause to your contract explicitly covering the work that ’ s ultimately not used . It can read like this : “ All payments are non-refundable and required even if deliverables are not used by client .”
So , if securing full payment is a step too far due to a deep seated dispute , suggesting an immediate 80 % payment may spur the customer on to finally resolving this invoice . After all , this is more productive than calling this customer 20 times and getting no nearer to receiving any payment whatsoever , whilst damaging customer relations .
All said and done remember to include dispute resolution in your credit policy and also make it part of your Key Performance Indicators . This will improve your overall debt management and inject positivity in client relations .
Do ’ s and Don ’ t ’ s
Now that you have tips on dispute prevention here are the dos and don ’ ts of invoice disputes
- Always be professional and mature , regardless of your client ’ s behavior .
- Do not be afraid to confront the issue , the longer you wait , the harder it is to collect payment .
- Start out friendly and understanding . You will have plenty of time to dig in and express your disappointment as the situation drags out .
- Phrase your statements as the choice your client has made ( e . g . “ I have no choice but to ,” “ I ’ m disappointed that I ’ m forced to ,” etc .)
By displaying this willingness to compromise it will also have the positive impact of boosting customer loyalty and adding a tougher approach to your credit control processes .
Remember , the main aim is to receive at least some payment for these disputed invoices – as the reality is that sometimes full payment just may be out of reach . And by applying this invoice management technique it will help to improve payment levels for these type of pesky invoices and free up more time and resource to be invested in more value adding pursuits .
If your debtor still refuses to pay , this is when you outsource to a professional . Make sure this is done immediately .
By outsourcing fast to a debt collection professional , you are sending a strong message to your clients / customers that you mean to get payment , no matter what . They will learn to respect your sound business practices . More importantly , word will get around to other customers that you are not to be trifled with .
So deal with disputes promptly , then outsource quickly if you are sure you are still in the right and the debt needs to be collected
Wasilwa Miriongi is a certified Credit Professional currently working as the Managing Director , Del Creder Credit Management Limited . You can engage him on this or related matters via email at : WMiriongi @ gmail . com .
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