Trade Disputes: In International trading when rules applied properly they are effective. Hence in many agreements how will the possible mentioned dispute can be settled.
Trade & Commercial Disputes
The purpose of this article is to help you communicate and settle any disputes which is being faced with your client in your business.
Settling a trade dispute is a difficult job, as there is debt or claim behind every dispute. In small businesses any dispute or collection claim can result in the failing point of those businesses. By having good & effective communication skills, dispute can be identified before time and can be settled without any hassle to either parties. In case of late payment disputes its advised to be get the claims clear before it coverts non-payment.
Normally small Business disputes and debts can be collected from debtor who fall in the following category.
Debtor who may fall to any extent to avoid paying
Debtors who would pay irregularly due to many pending invoices.
Those clients who normally pay on time but due to Financial strains cannot pay.
Generally, small businesses would wish to have debtors who fall in the first two categories as one can manage the cash flow as well work with them as their history shows complete or partial payments. Being small business owner one must have his criteria for categorization to each of the above and devising a strategy or method to get the debt recovered and not creating any dispute.
To settle any trade dispute its suggested to act quickly and stay focused followed by strong follow up with clear communication with the other party. It does not matter what kind of business you are dealing with if you take quick actions it will help you maintain the right to owe money and staying determined with clear communication will remove the chances of creating any dispute. One should send reminders followed by bills to debtors regularly. Waiting till the end of month or sending invoice after being due can obviously create a dispute or give time to debtor resulting in bigger loss.
The best way to avoid debts or trade disputes is to take the right action on right time. Starting from clear communication with your clients to having a strong follow up with them after sending the invoice are one of the important ways.