Disclose and Agree Payment Terms Before you Supply Goods or Services
Set out payment terms in writing and obtain your customers acceptance of these terms with a signature BEFORE you supply goods or services.
‘Well begun is half done’, as the saying goes.
Get a signed contract:
Your Contract, Terms of Trade, credit Policy doesn’t need to be a long and complex document.
However it should cover the basics; a simple, plain English, contract / credit policy that clearly states your obligations as a supplier; the customer’s obligations of how and when to pay; your policy for handling disputes; and penalties and collection costs for late or non payment is a good place to start.
Every new customer needs to know, from the very beginning, how you expect to conduct business. And DO NOT be afraid to ask existing customers to review and sign any new or revised Terms of Trade.
Purpose written Terms of Trade:
A purpose written Terms of Trade should protect your rights, limit your liabilities and provide security in the transaction. Include the Legal name and any trading name/s in your contract/s and / or Terms of Trade.
Your terms of trade should include the following:
- The legal name of client/debtor
- Your legal right to payment for goods or services supplied
- Payment options
- Payment deadlines
- Penalties (default interest, collection and legal costs) for late payments
- The provision of a personal guarantee
- Other terms and conditions unique to your business
- The law is there to protect you
We currently have a special offer: 15% discount off our Terms of Trade package.