Terms and Conditions of Trade
Your credit application and terms and conditions of trade form the basis of your organisation’s relationship with its customers. They establish the rules of the game, and if a problem occurs with the business relationship, you want to be able to rely on these documents to help resolve the issue.
When your business relationship is travelling smoothly, you don’t give them a second thought, but if things go awry, they are the first documents you turn to and review to see what your options are.
A well-drafted credit application and accompanying set of terms and conditions will pay big dividends to a business over many years, by removing uncertainty about what was agreed between the supplier and their customer. As a debt collection firm, we regularly rely on these documents when chasing overdue debts for our clients, and sadly, we often find that their credit documentation lets them down in many ways. A well-drafted set of Terms and Conditions can significantly reduce the time and costs associated with debt recovery.
AMPAC and its national panel of lawyers understand every aspect of trade credit, debt recovery and legal action, and regularly assist businesses to improve their credit documentation in order to give them the advantage when an account is not paid.
Reviewing and updating your terms of trade should form a part of your ongoing credit risk management strategy. It is one of those activities which cost little, but returns lots.