Do’s And Don’ts Of Effective Terms And Conditions

What You Should Include And What You Should Avoid

Businesses in the UK should review their Trading Terms and Conditions on a regular basis as business legislation changes from time to time and the trading environment is continually evolving. Terms and Conditions can quickly become out of date. Reviewing the content of your Terms can not only help protect the business from bad debt but could significantly reduce the cost of extending credit.

The Benefits Of Late Payment Interest And Compensation

An effective and strong statement by businesses chasing debts, is to use the Late Payment Interest and Compensation legislation introduced in 1998.

Few enough businesses are taking advantage of this legislation, despite being well within their rights to do just that. By including interest and compensation in your claim, you can offset your internal costs in recovering debts. Why not use this option to claim back such extra costs incurred? Utilising this legislation is a positive decision that will act as a deterrent to late payment as well as providing a new revenue stream.

Businesses should also state in their Terms of Business that they will add to their invoices the full cost of legal fees for any debt recovery activity necessary to secure overdue payments. Do not sit back and incur irrecoverable costs. You can stipulate in your terms a provision to claim realistic costs to offset your expenditure.

Lovetts’ Key Points On Effective Terms And Conditions:



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29 October 2013