Simply put, they are your rules of your business game.
In the UK terms and conditions represent a cornerstone upon which business is built. Yes, sales and operational success are key for the financial health of your business. But if you cannot collect sales revenue from your debtors in an effective way, then your cash flow and your business will stagnate.
And you won't be alone because nearly one in five of all businesses have a major problem with late payment according to the UK Government's latest annual small business survey.
However, a well-drafted set of terms and conditions, properly implemented, can be leveraged to ensure that your invoices are given top priority by your clients. EC Credit Control can show you how.
Of-course, if you are a retail business then your terms can be simple because cash collection is relatively straightforward. In this case, your terms need only really cover issues concerning warranty, liability, conditions of use and health & safety.
But the majority of businesses supply goods and services to customers on credit. In which case, the business needs to protect itself in case of late or non-payment.
What options are open to that business if a customer doesn't pay on time? Charge late payment interest? And what if that doesn't work, try the courts? Yes, but as most of us know legal action is costly, time-consuming and does not always produce the desired outcome.
But there is another way. If you wish to know more about how terms and conditions can help improve your businesses' cash flow, contact EC Credit Control now or read on for more information.