Did you know that a business can lose a lot of money if its invoices are not paid in time? There can also be non-payment fees that can add more expenses to a bill that has not been paid.
However, if companies do not generate invoices correctly, customers can refuse to pay them. If you are wondering, “can I refuse to pay an invoice,” here is all the information you need to know about what is an invoice and the repercussions of refusing to pay an invoice.
An invoice is a document exchanged between sellers and buyers to record a purchase of goods or services. When you order a product or service from a vendor, you should expect to receive an invoice from them to specify how much money you owe and when to pay it.
When creating an invoice, you should always mention the total amount due, a short description of the goods or services sold, ways to pay the invoice, and the payment due date.
Check out this fast invoice maker to ensure you always clear payments on time without disputes. Creating an invoice is essential because it lets businesses receive goods or services before paying. This helps protect their income. Invoices are also legally binding and tied to certain obligations.
Remember that whoever sent an invoice has a right to be paid. Therefore, you must pay that invoice if you received goods or services from the sender. It is not possible to ignore an invoice because it is a legal document.
Unless you have discussed a different payment date, you have an obligation to pay the invoice by the date mentioned on the record. You can refuse to pay an invoice if the goods or services are not what you agreed on.
For instance, if the goods are faulty or products are missing from your order, you can dispute an invoice with the sender. However, you cannot contest it because of a payment deadline unless previously discussed with the sender. Unless your previous contract specifically mentions a different date agreed upon by both parties, you must pay the invoice on time.
If you request a payment date change, this is up to the sender to honor. Then they must issue a new invoice reflecting the revised payment date. It is not easy to refuse to pay an invoice once it has been generated because it is legally binding. However, you can contest it for various reasons if the goods or services received are unsatisfactory.
Many people wonder, “can I refuse to pay an invoice” to return goods and services. However, you should not try to get out of paying if you cannot do so by the due date. Paying invoices is a legal obligation if products or services have been delivered.
If you need more time to pay, you should discuss this with the sender, and they can choose to honor your request. Then they can issue a new invoice to reflect this change. If you enjoyed reading this invoicing guide, check out some of our other posts for more information.