A disputed invoice is often seen by entrepreneurs as a dead end: the customer asks questions, voices criticism, or simply says “I dispute the invoice.” Many entrepreneurs then wonder whether they can still enforce payment. The short answer is: yes, in many cases.
In this article, we explain when a disputed invoice is legally valid, when it is not, and which steps you can take to still get paid.
What does it mean when an invoice is disputed?
A disputed invoice means that the customer indicates they disagree with (part of) the invoice. This can relate to:
- the amount;
- the quality or scope of the work;
- the price agreements;
- the delivery or completion;
- the applicability of terms and conditions.
Important to know: disputing an invoice does not automatically mean that payment may be suspended.
When is an invoice validly disputed?
An invoice is only validly disputed if a number of conditions are met. In practice, the following are considered:
- is the dispute timely lodged?
- is the dispute specific and substantiated?
- does the complaint relate to the agreement?
A vague remark such as “I am not satisfied” or “this doesn’t feel right” is insufficient to refuse payment.
Common misunderstandings with disputed invoices
For invoices that are disputed we regularly see the same misunderstandings:
- “If I dispute it, I don’t have to pay”;
- “I will only pay when everything is perfect”;
- “I can always discuss this later”;
- “I’ll just stop responding”.
These assumptions are legally incorrect. Doing nothing or disputing vaguely often works to the customer’s disadvantage.
What if the invoice is disputed only after a long time?
If an invoice is disputed only weeks or months after receipt, the business owner is often in a stronger position.
Especially if:
- the work has already been accepted;
- the client has used the result;
- no complaints have been made earlier.
In such cases, a late dispute is usually insufficient to refuse payment.
What role does the contract play?
In the case of a disputed invoice the contract or the order confirmation is crucial. Check among other things:
- what exactly has been agreed;
- how the work is delivered;
- which payment terms apply;
- which complaints procedure has been agreed;
- whether general terms and conditions apply.
Emails, quotations, and WhatsApp messages can also serve as evidence.
How do you respond strategically to a disputed invoice?
1. Ask for a concrete justification
Have the customer specify exactly:
- which part is disputed;
- why this would not be correct;
- which solution is expected.
2. Refute the objections on the merits
Respond in writing and refer to:
- the agreements made;
- the services rendered;
- any acceptance or use.
3. Continue to explicitly demand payment
Even with a disputed invoice, it is important to continue to formally demand payment.
When is the customer in breach of contract?
If the invoice is justified and the customer refuses to pay without a valid reason, this constitutes a breach of contract.
You can then:
- enforce payment;
- claim statutory interest;
- claim collection costs;
- take legal action.
What if part of the invoice is justifiably disputed?
In some cases, part of the invoice is justifiably disputed. This does not mean that the customer owes nothing at all.
Often, the following applies:
- the undisputed part must be paid;
- only the disputed part can be suspended;
- parties must seek a solution.
Business debt collection for disputed invoices
Even with a disputed invoice business debt collection is possible. A legal approach often still leads to payment, without a judge being required.
Read more about our approach to business debt collection and within the business law.
International customers and disputed invoices
For international customers, a disputed invoice can be more complex due to differences in language and law.
You can read more about this at international debt collection in the Netherlands.
Common mistakes by entrepreneurs
- waiting too long to respond;
- not collecting evidence;
- letting emotions take over;
- communicating unclearly;
- giving up on collection too quickly.
Costs and litigation funding for disputed invoices
In disputes over a disputed invoice we generally work not on the basis of no cure no pay.
However, this does not mean that you have to bear these costs yourself. In many payment disputes litigation funding possible.
We work with an independent litigation funder who – after assessing your case – may decide to:
- to pay all attorney fees;
- to pay the court fees;
- to bear any expert costs.
If litigation funding is granted, you as the client end up paying nothing. The litigation funder bears the full financial risk.
The litigation funder only receives compensation upon success. For you, this means that you can enforce payment without financial risk.
About the author
This article was written by Onur Arslan, attorney and founder of Arslan Advocaten. He assists entrepreneurs with payment disputes and commercial conflicts.
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