Time to update your business terms and conditions?
Properly drafted terms and conditions are the bedrock of any successful business. They set out the contract terms between your business and your customers. What can often be forgotten is that these are living documents. Businesses do not stay static and neither does legislation.
Why you need to review your terms and conditions
Obviously, terms and conditions need to be updated to take into account new legislation and regulations, but it’s not just legislation that changes.
Your business changes and evolves over the years, as does the market in which you are trading. Digital transformation for example has had a huge effect on businesses. What was appropriate at the start of your business may no longer be adequate.
What about global changes? Industry is facing disruption from all sides; societal, political technological and economical. The rise in commodity prices, higher inflation and supply chain issues mean that almost every business is seeing increased costs in both supplying and securing goods and services.
We know cash is king for any business. The ability to get paid for goods and services at the earliest opportunity is reliant on clear and enforceable terms and conditions. A review of your terms and conditions may reveal that your current ones are overly generous. Reducing the credit period, for example, could make a real difference to cashflow.
What about debt collection? Do your terms allow you to charge interest on late payment? Are you able to pass on the costs of having to recover the debt? Are you able to suspend the delivery of goods and services until invoices are settled?
Items for inclusion in terms & conditions
Business terms and conditions could include:
- details of goods and services to be supplied
- delivery arrangements
- pricing and terms of payment
- credit terms and credit periods
- late payment charges
- data protection and privacy
- intellectual property protection
- service levels
- variation / termination clauses
- process for settling disputes
If you fail to review your terms and conditions you run the risk of encountering financial, regulatory, legal and operational issues that can have a devastating impact on your business.
Picton’s commercial law experts take the time to understand you and your business. That way we ensure your terms and conditions are not just legally compliant but reflect the specific needs of your business and its customers. Contact us if you need guidance in drafting your terms and conditions.