A disputed invoice is often seen by entrepreneurs as a dead end: the client asks questions, expresses 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 you can.
In this article, we explain when a disputed invoice is legally valid, when it is not, and what steps you can take to still get paid.
What does it mean when an invoice is disputed?
A disputed invoice means that the client indicates they disagree with (part of) the invoice. This may 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 legitimately disputed?
An invoice is only legitimately disputed if certain conditions are met. In practice, the following is considered:
- was the dispute raised in a timely manner?
- is the dispute specific and substantiated?
- does the complaint relate to the contract?
A vague remark such as "I am not satisfied" or "this doesn't feel right" is insufficient to refuse payment.
Common misconceptions about disputed invoices
With invoices that are disputed, we regularly see the same misconceptions:
- "If I dispute, I don't have to pay";
- "I will only pay when everything is perfect";
- "I can discuss this later";
- "I simply won't respond anymore."
These assumptions are legally incorrect. Remaining passive or disputing vaguely often works against the client.
What if the invoice is only disputed after a long time?
If an invoice is only disputed weeks or months after receipt, the entrepreneur is often in a stronger position.
Especially if:
- the work has already been accepted;
- the client has used the result;
- no complaints were raised 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 order confirmation is crucial. Check, among other things:
- what was exactly agreed upon;
- how the work is to be delivered;
- what payment terms apply;
- what complaints procedure was agreed upon;
- 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 specific substantiation
Have the client specify exactly:
- which part is being disputed;
- why it is alleged to be incorrect;
- what solution is expected.
2. Refute the objections on their merits
Respond in writing and refer to:
- the agreements made;
- the services delivered;
- any acceptance or use.
3. Continue to explicitly claim payment
Even with a disputed invoice, it is important to continue formally demanding payment.
When does the client's conduct constitute breach of contract?
If the invoice is justified and the client refuses to pay without a valid reason, this constitutes a breach of contract.
You can then:
- enforce payment;
- claim statutory interest;
- claim debt collection costs;
- take legal action.
What if part of the invoice is legitimately disputed?
In some cases, part of the invoice is legitimately disputed. This does not mean the client does not have to pay anything at all.
Often the following applies:
- the undisputed portion must be paid;
- only the disputed portion may be suspended;
- the parties must seek a solution.
Commercial debt collection for disputed invoices
Even with a disputed invoice, commercial debt collection is possible. A legal approach often still leads to payment, without a judge being needed.
Read more about our approach to commercial debt collection and within business law.
International clients and disputed invoices
With international clients, a disputed invoice can be extra complex due to differences in language and law.
Read more about this at international debt collection in the Netherlands.
Common mistakes by entrepreneurs
- waiting too long to respond;
- not gathering evidence;
- letting emotions take over;
- communicating unclearly;
- giving up on debt collection too quickly.
Costs and litigation funding for disputed invoices
In disputes concerning a disputed invoice, we do not, in principle, work on a no cure no pay basis.
However, this does not mean you have to bear these costs yourself. In many payment disputes, litigation funding is available.
We work together with an independent litigation funder who — after assessing your case — may decide to:
- pay all attorney fees;
- cover the court fees;
- bear any expert costs.
If litigation funding is granted, you as a client pay nothing on balance. 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 in payment disputes and business conflicts.
Would you like to know how strong your position is with a disputed invoice?