IOFM Exclusive: Disputes Are on the Rise

Do you feel like your product company clients are “flooding the zone” with disputes as a means of delaying payment terms? You’re not alone. That’s exactly what a focus group of 12 AR practitioners recently told IOFM.

Seven of eight product-focused AR team leaders shared that the number of disputes has climbed in recent months. One participant saw the value of disputes double from March to April.

Interestingly, only one of the four service-focused companies reported seeing an uptick in disputes, at least not yet.

“We do believe that the tariffs are driving an increase in dispute volume as a means of delaying payments,” shared one participant. 

Another added, “We have noticed customers are being very careful about what they are paying, so we are adjusting to be sure we are invoicing correctly the first time to help minimize the disputes, along with looping in our sales and the operations team to assist on the front end.”

Among the product-focused AR leaders who are not seeing an increase in disputes, one stressed: “Our company is proactive in preventing disputes. All orders received are verified for any pricing, quantity, and payment terms discrepancies. When a discrepancy is found, the order is on hold until the issue is resolved.”