Are you tired of cash flow problems? Do you wish your customers would pay you what you want when you need it? Are your worried that your business is not as protected as you want it to be?
One of the best things you can do to get your small business paid on time is setting strong terms and conditions for your invoices. The trouble is, setting the right terms and conditions can be difficult and confusing. Also, if you don’t set them up correctly, you may have trouble getting your clients to pay you when your business needs cash.
Don’t worry though, we’re here to help you through the process.
Make a list of everything you need to cover with the statement.
First, consider all the possible legal issues you may run into because of the transaction. Here’s a list of questions you may want to consider as you’re writing out your statement:
- What happens if the client doesn’t pay?
- What happens if you’re late on the delivery of your product or service?
- What if your customer is dissatisfied with your product or service?
- What happens when the product is damaged on delivery by your client’s delivery service?
- What happens when your client pays late?
- Are there any benefits if they pay early?
- What kind of interest rate are you going to charge for late payments?
- What if the customer wants to renegotiate the contract after it’s been signed?
- Can your customer ask for a refund? What cases would allow this?
- What happens if the scope of the services required grows?
- If there was a misestimate on budget, who covers it?
- In the case of the product breaking after the sale due to an accident, who is responsible?
Make a list of absolutely everything you can think of. The more items you cover in your terms and conditions statement, the more protected your company will be.
Write out your terms and condition statement.
Next, you’re going to want to write out your terms and conditions. You can use a friendly tone, but be clear and professional. Make sure your client or customer understands exactly what they’re agreeing to when they use your products or services. Have someone who is familiar with your business read through it and see if they can clearly understand it. They may give you valuable feedback on items you want to add or remove.
Consult with a lawyer.
Finally, after you’ve drafted your terms and conditions statement, you’re going to want to consult with a lawyer. While it will be expensive, they will be able to tailor your terms and conditions statement to protect your business as fully as possible. They will probably show you what you need to add to further protect your business.
Now that you have a terms and contract statement, with every customer, make sure your terms and conditions clearly state what goods and services are being traded. Every company has a different product and they all offer different services, so you need to make sure that each invoice matches the transaction. Update your terms and condition statement for each client, so that you have in writing what the transaction entails. This will help protect your company, as well as allow you to collect your money easier.
You may want to run each invoice by a lawyer, just to make sure your bases are covered.
Creating a strong set of terms and conditions can be daunting, but it’s essential for protecting your business. A simpler option is using a B2B credit management platform that includes terms and conditions automation. With a B2B credit management platform like Apruve, you can know your business is being protected. Apruve handles your invoices so you don’t have to continue being the bank for your clients and customers.