The Importance Of T&Cs For Getting Your Money
No matter the skills shortage when it comes to London flooring, there is necessity of an extra 900 new London flooring layers each year up to 2019. There is another huge problem too – getting paid is still a major obstacle for growth. London flooring contractors point, that medium and small enterprises in UK face around £40bn in unpaid invoices. In addition, since 2007 the number of insolvencies has increased. It seems that people are more willing to start a dispute rather than pay the London flooring contractors when they’re pressed by the law. This way London flooring suppliers are exposed at greater risk of not being paid. So, it’s very important to prepare very carefully the terms & conditions as a part of the contract. London flooring experts advise you to consider these things when you write your T&Cs:
- London flooring contractors remind, that the main purpose of your T&Cs is to govern the relationship between you and your client. They should also favour your business.
- London flooring experts advise you to require money to be paid up-front.
- For those of you who deliver goods an adequate ‘retention of title’ clause should be included. It should be pointed that the goods belong to you so that they are identifiable in case of an insolvency.
- London flooring specialists advise to write, that the provided goods should be stored separately from other goods and the client should not use them without your written consent.
- Don’t forget to mention, that title to the goods will never pass to the customer, unless full payment is received and that fact is confirmed in writing.
- London flooring contractors should include a provision for debts owed on one contract to be offset against other contracts between provider and buyer.
- London flooring experts advise you to control your exposure by limiting the credit facility to your customers to a reasonable amount.
- London flooring specialists point, that there should be also clauses that guarantee a quick turnaround. This means that client will have a certain number of days after delivery to inspect the goods.
- The truth is that requiring full or part payment preliminarily must become a standard procedure. London flooring experts point, that as a minimum you should guarantee the price of the materials you are delivering is covered.
- London flooring contractors advise you to request payment (or the balance) on delivery where the goods/services may be inspected. Otherwise you can agree a part of what is due to be paid on delivery and the balance paid afterwards.
- There is one trick, revealed by London flooring experts on how to prevent late payment. You may send some reminders or phone the client and request a payment before the final date. Mention the interest that may be charged in case of late payment. Consider the idea about repayment plan for those customers who can’t pay as opposed to won’t pay.
- London flooring contractors advise you to undertake credit checks where possible and receive guarantees from parent companies and/or managers. All that will minimise risk exposure.
London flooring experts conclude that ensuring payments are made is cheaper than chasing outstanding payments. The key remains to understand very well who you are contracting with.
Inspired by www.contractflooringjournal.co.uk