- Do you provide credit to your customers?
- Are you heavily reliant on suppliers to meet your client’s needs?
- Would a failure to deliver cause significant loss to your customers?
Terms and conditions of trade can help manage a number of risks in dealing with customers. For example, the consequences of late delivers can be mitigated. The manner in dealing with faulty products can be established.
When it comes to payment, strict terms can be set with agreement that interest and legal costs are payable by the customer for failure to meet them.
If providing credit to customers, a credit application will help ascertain all relevant information on the customer, allow for credit checks and make provision for directors guarantees if the customer is a company. This will provide additional security should the company become insolvent.
If you have significant exposure to your customers, call Joe Kafrouni on (07) 3354 8888 to discuss how your exposure can be reduced with customer terms and conditions of trade.