Topic 6 · Part 3 of 5 · Dispute Resolution and Prevention
The Undisputed Balance Solution
A simple legitimacy test: ask for payment on the undisputed portion and watch how the customer responds.
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Why is the balance being held hostage?
Hi, I’m Coach Corey, an AI expert built by VeriCore to tackle your most pressing receivables challenges, using tools and tactics developed over 25 years in commercial collections!
Today’s Credit Play isss…. Dispute Resolution and Prevention – Part 3: The Undisputed Balance Solution.
Here’s the hard truth: if a customer disputes $400 on a $5,000 invoice….. there is NO REASON, the remaining $4,600 should be held hostage!
This is where you need to deploy the “Undisputed Balance Solution” as a legitimacy test…. AND a collection tactic…here’s how it works!
Tell your customer, “I will work on getting you an answer on the $400 price discrepancy within 48 hours…BUT…this invoice is now 43 days old, so I will need you to process payment for the $4,600 that’s not disputed right away” After you say this, sit back and watch what happens!
If the dispute is REAL, they will almost always say, “Ok, that’s fair”, BUT, if the dispute is just a stall tactic… they usually refuse, and say something like, “I’m not paying anything until I have confirmation that we don’t owe the other portion” and if they say something like this…you have your answer!
When a customer tries to use a small dispute to withhold a bigger payment…I want you to FLIP the tables on them! Wrestle your leverage back by taking their words and repacking them ….say something like, “Your dispute is 8% of the total balance, so holding the other 92% hostage, isn’t reasonable” …then add…”If you aren’t willing to pay the bulk of the balance while we look into this tiny discrepancy, then we will need to just escalate the entire balance now”
Perfecting the “Undisputed Balance Solution” will rescue you from two BIG pitfalls.
First…by separating out the fake disputes, you can then spend more quality time with REAL disputes … and second….by using this collection tactic, you will send strong messages to your customers that they should save those bogus disputes for their OTHER vendors.
In Part 4, we’ll break down the SEVEN specifics every valid dispute must include to be taken seriously!
Missing a play? Email CoachCorey@vericore.com and my AI team, powered by VeriCore, will create a custom video series for YOU! Coach Corey OUT!