- July 12, 2022
- Posted by: Taurus Collections
- Category: Blog
Late payments are an inevitable part of small businesses. However, by having the right business and payment terms by your side along with the assistance of a well-experienced debt recovery agency, you can ensure to receive quick payments. Therefore, always clearly and concisely specify your business terms to leave no excuse for slow payers and non-payers.
Contractual agreements are essential documents for any business or party, as these are legally binding. Thus, whether it is with your clients, suppliers, or other third parties, always check the content of the contracts you sign to ensure that the conditions of the agreement will protect your business interests at all times.
Things to remember when setting terms and conditions of your business contract
When finalizing the terms of your business agreement, consider the following factors to help clarify the roles, responsibilities, and liabilities of you and your client.
Step 1: Imagine the most complex customer or client while doing the entire exercise.
Step 2: Make sure to think of all the potential scenarios that can go wrong and what you would do in each circumstance.
Step3: Do not forget about the trading terms and conditions (make sure to revisit and update whenever needed)
Step 4: Stand in your customer’s shoes and ensure that the agreement’s language is at their level and user-friendly.
Remember — Adding everything on one page in the smallest font possible will not make you endear to your customers.
Step 5: When in doubt, seek help from a professional. Ask for advice from a solicitor or fellow business owners.
Here are a few essential details that you must include in your business or payment terms and conditions:
- Terms and conditions of payment.
- The mode of delivery of your products and services.
- Your position on defective goods and services.
- Your liability.
- A description of goods and services.
- The price.
- Any other relevant terms and conditions- specific to your transaction.
Point to remember—
Always make sure to add your address so your customers can contact you. As a sole trader, you should provide the location of your business address or registered office. However, if your business address is similar to your residential address, consider setting up a PO box.
Moreover, failing to state your business’s terms and conditions can severely impact your cash flow. For instance, the lack of terms and conditions can create confusion during the transaction, like your customers may decide to pay at the end of the project while you may assume to receive the payment before delivering the goods or services. This does not bode well for cash flow when you need to settle your operational expenses. Similarly, it is essential to state your interest charges in the agreement to make your business eligible to charge interest rates. Otherwise, it can leave your business with unwanted financial strain.
Do you need a reliable debt collection agency to assist you in carrying out a stress-free collection of your business debts? We are here to help! At Taurus Collections (UK) Ltd., we practice a straightforward approach to aid our clients with our debt collection services. We strive to offer the utmost customer satisfaction when dealing with their debtors. Our services include:
- No win-No fee debt recovery
- Business financing
- UK & international credit checking
- Pre-legal visits
- Outsourced credit control
You can use our Late Payment Calculator to know your outstanding credit amount.
Please phone us at 0800 069 8777 or 01332 565 350 (Derby) or write at email@example.com. Stay tuned on Facebook, Instagram, and Twitter.