Whether your company fixes plaster, consults for business mergers or builds furniture, you expect to get paid for the goods or services that you provide your clients or customers. You wouldn’t be able to continue operating a business or paying your expenses if you didn’t charge money for the work that you do.
Operating in business-to-business niches instead of working directly with the public initially seems like a great way to reduce the risk of people not paying you. Unfortunately, some people learn the hard way that businesses can be even harder to collect money from than individuals. Fortunately, there are also unique ways to handle a dispute with another company about an unpaid invoice.
You can report them to the Better Business Bureau
Individuals will often make good on outstanding debts when they realize that nonpayment could affect their credit score. Businesses have less of a credit-based incentive to make payments, which limits your collection options. However, you can report unpaid business invoices to the Better Business Bureau.
It could damage their reputation and help protect others from being taken advantage of the same way your business was. Additionally, if they want to remove the complaint from their record, they will likely have to pay you first.
You may consider factoring to handle unpaid invoices
You can sell unpaid invoices to a factoring company, typically within 90 days of the invoice’s date. This gives you immediate revenue, and the company can assist in the collection of that invoice’s balance.
Companies dealing with business disputes, including unpaid invoices, may find that getting legal assistance with the dispute leads to a faster resolution and helps them avoid such issues in the future.