Running a business is hardly smooth sailing. With so many factors to consider (such as cash flow, inventory management, and employee relations), it’s no wonder business owners can find themselves in a conundrum.
Tips on How to Recover Unpaid Invoices
However, there are simple steps one can take to help make things more manageable. One of these things is having a terms and conditions contract in place.
What Is a Terms and Conditions Contract?
A terms and conditions document is a legally binding contract between a business and its clients. Whatever is stipulated in this document should be followed by both parties. If one of them fails to follow through, there is a chance of bringing the case to court.
A terms and conditions contract in a business setup basically states all the details of an impending transaction.
- What you will provide the client, may it be products or services
- How and when these products or services will be delivered
- How much the costs will be, including shipping and handling fees
- When you want to be paid, if you require a downpayment, and when the balance will be due. Late fees, if any.
- How you want to be paid – cash, credit, bank transfer, online transfer services, check
- Refunds or return policy
- Privacy policy
As you can see, the document is pretty detailed and is meant to protect both parties from any misunderstandings or disputes.
Writing Your Own Terms and Conditions
“If not now, when?”
Such is the question if you haven’t already been using a terms and conditions document in your company. You may certainly begin drafting one now and have it properly reviewed by a professional later on. Since this document is legally binding, you want to make sure that nothing in it can be a cause of worry and misunderstanding, as well as put you in a legal bind later on.
Use Simple Terms
No need to impress your English teacher here – avoid the use of highfalutin words. Unless you are part of specialized industry, the simpler the document the better.
You want everything to be straight to the point and answers all the questions the client may have about the transaction. When they can see in writing that you can provide them with this and that, there is a sense of confidence and trust in doing business with you.
Explain if You Need To
There might be some parts of the document that need to be further explained. Have a section dedicated to this at the end of the contract. This is especially important when you are using terms that are common in your field of specialization, but not to the common folk.
Having something as simple as this will help you gain the buyer’s trust since you are forthcoming about it. New clients always want to feel that they can trust you especially if you offer a product or service that they need or want.
The Importance of Terms and Conditions
Having terms and conditions in your business is guaranteed to make things easier in almost, if not all, aspects.
Smoother Transactions
Since everything is in writing, there is no reason why the transaction shouldn’t work out the way it should. While there are certain things that are out of our control such as the weather (which may affect delivery or services rendered), the deal should go on without a hitch.
A term and conditions contract becomes final and legally binding when both parties agree to what is stated in the document. The client may or may not request some changes, and it is up to the business owner to agree to negotiate.
Better Business Management
You may not realize it until later on but having a terms and conditions document as part of your order process will help business management in more ways than one.
Let’s Take Cash Flow as an Example.
Cash flow can be considered the backbone of a business. It allows the owner to pay his employees, the rent, and stock up on products. It can give you the freedom and flexibility to pay for other things such as an upgrade on machinery or invest in a marketing campaign.
Cash flow is greatly affected by payments made by clients; if they fail to pay on time, how you manage your finances will take a hit. You’ll eventually have to pay for things out of pocket or worse, you’re left to apply for loans.
Less Client Debt
One of the main purposes of having a proper Terms and Conditions document is so you can lessen client debt.
Client debt can be a burden and headache especially when it is not given a proper solution as soon as possible.
Trying to run after unpaid invoices may sometimes be like running around in the dark — you might not be getting anywhere. The time and effort it takes to go after errant customers are draining.
Conclusion
Debt recovery is within reach. Client debt is a burden that no business owner should have to worry about anymore when you have a proper terms and conditions contract in place. However, things don’t always go as we want them to.
Debt recovery services in Brisbane are just a phone call or email away. Partner with a professional who can manage these things for you so you can focus on other aspects of running your business.
__________________________________________________
Some other articles you might find of interest:
Marketing blogs you must follow as an entrepreneur:
29 Marketing Blogs Every Small Business Must Follow
Are you feeling cramped in your home office space? You might enjoy this article:
Home Office Design Ideas for Small Spaces
