An amicable solution is desirable in such cases. To maintain the relationship with your customer and avoid extra (procedural) costs. But also to be able to continue your business. After all, insurers suspend coverage of deliveries to the debtor in question until it is clear who is in the right.
Seven tips to avoid annoyances and reach a solution:
- Handle general terms and conditions
Make sure your general terms and conditions of delivery and payment apply. Clearly include in them what the buyer should do if there is a dispute and, above all, within what time limit a dispute should be reported to the supplier; - Direct action after invoice due date
Start tight accounts receivable management as soon as your invoice is due. That way, you will discover in the quickest way whether there is a dispute so you can resolve it immediately; - Establish dispute procedures
Make sure a dispute procedure is established within your organisation so that it is clear who is responsible for what. This will allow you to act quickly and appropriately; - Engage with debtor
Engage with the debtor and try to resolve the dispute amicably in the first instance; - Remain compliant with policy obligations
If you are insured, continue to fulfil your policy obligations. Even if an out-of-court settlement is in sight or the debtor appears to be paying. - Consider 'Disputed claims module' if you are credit insured
Disputes are common in certain industries, such as construction. It is a shame if then a single disputed invoice of a few thousand euros causes an automatic coverage stop, even though the debtor is a healthy company. To limit the adverse consequences in such a situation, you can include the 'Disputed Claims Module' in your policy. A disputed claim will then not result in a coverage freeze for further transactions. You will therefore not be obliged, in respect of the disputed invoice, to proceed with collection. The module applies to disputed invoices up to a certain amount. - Insure your disputed claims
With some credit insurers, it is now possible to co-insure the disputed claim. By doing so, you thus take an advance on a positive outcome of a dispute, on which the credit insurer will pay out. Should it turn out afterwards that you are not right, this will be settled later.
There is much to be gained from dealing carefully with (potential) disputes. Want to know more about the possibilities of continuing to deliver in the event of a dispute and/or how to make a dispute as least burdensome as possible to your business operations? Then contact us at info@xolv.nl or 073 - 820 02 95. Our specialists will be happy to talk to you.
