Start-Up Terms And Conditions

Terms And Conditions – Priority

If you are a start-up, your terms and conditions should be at the top of your list of things to do. They are the bones of your business as much as your business plan. Terms and conditions impact on your cash flow and profitability. 

Billing And Invoicing

Often small companies suffer lengthy delays and even non-payment of their invoices quite likely because of the culture generated by SMEs. Small companies tend to offer more personable services, with a more friendly approach to customers. As a result, customers prioritise larger companies that will invariably penalise them for late payment, which in turn affects their credit score.

Cash Flow And Business Continuity

We are all affected by the timing of invoice payments. You can be flexible in your terms and conditions, allowing your customers 30, 60 or even 90 days to pay for invoices. But if this impacts on your daily expenditure, then 7 to 14 days, plus penalties for late payment would be something to consider. You can discuss this with your lawyer and explore your options.

Invoice Content Reflect Ts & Cs

Your invoice content should reflect your terms and conditions. Remember that the minimum legal requirement for invoice content is your business name and address. But you should also include the date by which payment should be made. This invoice narrative should be a reflection of the terms and conditions and works also as a guide for your customers.

Addressing All Aspects Of The Business

Terms and conditions should address all aspects of the business right at the outset of the relationship with your customer.  Everything that involves your customer, should be included in the Ts & Cs. Should any issues arise on any area of the business, your Ts & Cs will help clarify and settle matters with your customer. 

Adapting Terms And Conditions

You can adapt your Ts & Cs for certain customers. What is included in the terms and conditions depends on your business, its size, what kind of relationship you want to have with your customers and what you want to protect.  For instance, a pet care company might use the same Ts & Cs for all animals except for dogs. They also might also add a clause the care of powerful dogs.

Deciding What Should Be Protected

You and your business lawyer can discuss what direction you want the business to go. It’s about planning and protecting your business. You must have a concise definition of services your business provides. Terms of service protect the business and your definition of that service should be brief but comprehensive. 

Think about the bare bones of your business, right down a list of everything you can think of, that might affect your relationship with your customers, as well as your cash flow. Get in touch with us and show us your plan. We can discuss that first draft of your plan and advise you on how to best protect your business. SG

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January 29, 2021 at 9:00 am
Category: Contracts

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