Find out who can actually approve payment.

The negotiator agrees, but the board has not

A supplier discusses a reduced lump-sum payment with a customer’s regional manager. The manager says the proposal is sensible and asks for the settlement wording. Later, head office says the manager could only recommend it. The supplier needs to establish who can approve the actual proposal before relying on the conversation as a payment commitment.

Ask which decision the person can make

Clarify whether the contact may recommend a proposal, approve payment of an undisputed invoice or agree to settlement terms for the debtor entity. Those roles need not be the same. Ask what further approval the proposed amount or conditions require.

Record the entity involved and the decision still pending. A senior title, friendly assurance or ability to arrange a meeting does not by itself establish acceptance of your proposed deal.

Confirm authority through the appropriate channel

Use established business contacts to confirm the approval route. Ask for the final response from the authorised role or representative, with legal advice where authority or execution requirements are unclear. Do not rely solely on a forwarded signature image.

Limit contact to people with a legitimate role in the account. ACCC guidance prohibits misleading and unduly harassing collection conduct. Calling unrelated staff or family members to pressure the negotiator is not a substitute for checking authority.

Source: ACCC - Debt collection rules

Put the exact proposal before the approver

Identify the amount, payment timing and material conditions being submitted. Mark unresolved terms clearly and keep different versions distinguishable. A recommendation about the price should not be mistaken for approval of a release or guarantee added later.

Have significant settlement terms reviewed. Ask whether the response is final, conditional or subject to another approval, and preserve it with the proposal to which it relates.

Keep acceptance separate from payment performance

Once the position is confirmed, record who accepted what and the next payment requirement. Do not release documents, goods or rights merely because the negotiator expects approval. Follow the checked agreement and your adviser’s instructions.

If approval is declined or remains conditional, update the recovery plan accurately. Keep ordinary invoice-processing enquiries separate from the decision about settling the dispute, so accounts staff do not inadvertently communicate a different deal.

Confirm the decision behind the assurance

Identify the debtor entity and the approval required for the actual proposal.

Obtain and preserve the authorised response to the correct version before relying on a settlement commitment.

Contact CRP about organising overdue-account communication and recovery support.