[BLOG] Terms and Conditions you should know in Business
Your business is probably one of whose customers expect goods or services to be offered on credit. By this I mean your customers are likely to pay for your products following delivery, say, 30 days after invoice date.
Unless you are in the retail sector, one of the risks you face is the possibility of late or non-payment by clients. Our Late Payment Tracker confirms that late payment continues to be a significant business problem even after some recent slight improvements.
It's clear that late and non payment of your invoices by both commercial and individual debtors could have a major detrimental effect on the financial health and survivability of your business.
Anecdotally, owners of several mature businesses tell me that the days of doing business on a handshake are fast disappearing.
Thankfully an important business problem has an equally effective and relatively low cost solution. It starts with creating terms and conditions for your business written from a credit management perspective. Properly drafted, your business terms and associated client documentation can help to ensure that your invoices get treated with priority by your customers.
Costly solutions such as credit insurance and credit factoring have their place, for sure. But our advice is to sort out the basics first.
Sound business terms and conditions can make a huge difference to your cash flow because: they help prevent late payment by your customers or debtors, and they can give you real options in case of non-payment by your customers.
So why not provide your business with a legally enforceable shield that not only protects your cash flow but has the potential to boost it too; preferably a shield that works and one that is custom made for your business.
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