It's all in the small print…
If you're a business owner, it's important to set out clear terms and conditions of your business in order to:
- protect yourself and your business;
- to ensure third parties are aware of how your business operates; and
- to ensure you get paid.
The key factor in reducing delayed payments and keeping your cash flow healthy is knowing what procedures you are governed by and what terms your customers are bound by. Clear and effective terms and conditions can prevent disputes arising with your customers.
It's important to get your terms and conditions accurate and applicable to your business. If your terms and conditions are incorrect or irrelevant, they can be difficult for the customer to understand, especially if you aren't adhering to the terms and conditions because they're not relevant to your business. The most important things to include in your terms and conditions are the following:
- the point at which the contract between you and the Customer is formed;
- the goods/services you will provide;
- delivery arrangements;
- when risk and ownership of the goods passes to the customer;
- price and payment;
- your right to charge interest on late payments;
- if you provide any guarantees or warranties in respect of the goods/services; and
- if, and how, each party can end the contract.
The Company and Commercial department at Smith Partnership can assist you in drafting your terms and conditions and advising you on the relevant laws that affect your business. More importantly, Smith Partnership can advise you on how to effectively incorporate your terms and conditions into the contract to ensure they are binding on the customer.
For further information on the above, please contact our Company and Commercial Department by ringing 0330 123 1229.