Published: 23rd July 2019
It’s helpful to know how to handle disputes with your creditors, as unfortunately if you’re not careful, the most straightforward dispute or disagreement could escalate to the stage where your business is under threat of closure.
Disputing the amount charged on an invoice is just one frequent cause of disagreement in business and may be due to a simple misunderstanding at an earlier stage of trading, or perhaps to poor administrative procedures.
Other common reasons for disputes involve the quality of goods or services provided by a trade supplier, late or non-delivery, and also whether some or all of a specific debt has already been paid.
One of the best ways to handle creditor disputes is to minimise or pre-empt their likelihood of occurring in the first place, so what steps can you take to reduce the number of disputes with business creditors?
It’s possible to minimise the number of disputes that occur by setting out clear terms and conditions of trade within your contracts and other official documentation, and ensuring suppliers sign to confirm their acceptance.
Building a strong rapport with business creditors over time helps to deal with disputes when they do arise – a particularly important point with regard to your key suppliers. Communicate openly and develop a reputation for being a reliable payer.
Being aware of other suppliers you could use if a dispute harms your relationship with a current business creditor helps to prevent a problem with supplying your own customers or clients.
You may be able to settle the dispute by:
If the dispute is about non-payment, and it isn’t resolvable, the creditor could take legal action against your business. So if the situation declines to this point, how do you handle court action by a business creditor?
If you would like more information on how to handle creditor disputes in your business, call one of our licensed insolvency practitioners at Real Business Rescue. We can establish your legal situation and advise on your best options going forward – we operate an extensive network of offices around the UK so you’re never far away from professional assistance when you need it.