Terms and Conditions (T&Cs) are key to any successful business transaction. If there are no terms, there is rarely any business- not the kind you want anyway.
Sometimes we overlook the logistics and hope for the best, especially when doing business with friends. However, there will always be someone who doesn’t pay, makes errors, or doesn’t meet deadlines. You need to be prepared for these situations with a clearly written T&Cs document. Writing your T&Cs might be at the bottom of your ‘to-do’ list but they are essential for business success; they definitely deserve to be bumped up to the top!
Money, Money, Money…
Most businesses struggle with financial matters in one way or the other but what if I told you, you could use your T&Cs to create a payments safety net?
This is particularly key if you are a SaaS (Service as a Software) or an E-commerce business collecting payments for goods or products.
Payment terms in your T&Cs agreement can help to protect your business as well as keep your customers informed of your expectations when it comes to payments.
How to ensure safety?
- Have structured payment terms, or at least a clause in your T&Cs, to outline your payment process and money flow.
- If you are a provider of services, you must make sure that you are clear on invoicing, payment procedures and expenses (if applicable).
- Have a late payment clause and consider your late payment policy and even a dispute resolution if needed
What happens when things change? Client changes their mind, asks for different options, additions, or amendments of your deliverables?
You need to make it clear what the working process is and set boundaries from the get-go, so you are not at a loss and the expectations are aligned.
How to ensure safety?
Here are some things that can be included in your T&Cs to avoid pitfalls:
- The customer must give notice or warning regarding possible changes/amendment
- A note to inform about the financial consequences of any changes that occur.
- Cementing new scopes with engagement letters or other documents with signatures.
I need advice on this…
If any of the above points make you question your current T&Cs or just confirmed that you need such document ASAP, then you can purchase a tailored set of Terms and Conditions now for only £400+VAT.
Alternatively, get in touch via LegalDrop to discuss more options for your business or set up an initial consultation.
contributed by Molly Cronin, BEB Contract and Legal Services