Invoice Dispute

Invoice Dispute: How to Handle It Smartly

Receiving an invoice you don’t agree with can be tricky, but you’re not alone. With the right approach, you can handle an invoice dispute confidently, minimize risk, and keep your cash flow secure.

1. Check the Invoice Carefully

Before acting on an invoice dispute, make sure the invoice details are correct:

• Are the products or services delivered accurately?

• Does the amount match the agreed terms?

• Are VAT, dates, and other details correct?

If there are errors, you have a valid reason to dispute the invoice, giving you a strong legal basis.

2. Communicate Clearly and Professionally

Ignoring an invoice is never the best solution. Contact the supplier and explain calmly why you have an invoice dispute. Most issues can be resolved through a simple conversation. Remember: legally, you are required to pay unless you have a valid reason for withholding payment.

3. Document Everything

Keep all emails, contracts, quotes, and notes related to the invoice dispute. Well-organized documentation provides proof if the situation escalates to collections or legal action. Being prepared protects your business and gives peace of mind.

4. Factoring: A Smart Solution for Cash Flow

If you face frequent invoice disputes or slow-paying clients, factoring can secure your cash flow.

With factoring, you sell your outstanding invoices to a factoring company. You receive a large portion of the invoice amount immediately, while the factoring company assumes the risk and handles collection.

Benefits of Factoring:

• Immediate cash flow: Funds often in your account within 1–2 days.

• No risk of non-payment: Non-recourse factoring transfers all risk to the factoring company.

• Professional debt management: The company manages reminders and follow-ups.

• Flexible and secure: You choose which invoices to sell.

Factoring is not a loan; it’s a way to convert receivables into secure cash, a strategy used by businesses of all sizes.

5. Legal Insight: When You Can Dispute an Invoice

Under Dutch Civil Code (art. 6:83 BW) and similar business laws globally, you have a legal obligation to pay. Disputing an invoice is only allowed for valid reasons, such as an error or an unmet contract agreement. Without a valid reason, you risk:

• Interest and collection fees

• Legal action

• Damaged client relationships

Being professional and prepared protects you during an invoice dispute.

Conclusion

An invoice dispute doesn’t need to be stressful. Check the invoice, communicate professionally, document everything, and consider factoring to protect your cash flow. This approach keeps your business in control, reduces risk, and allows you to focus on growth with confidence.