Tuesday, 23 February 2010

The Second Step Towards Improved Business Terms and Conditions

Following on from my last post (addressing the issue of late payment interest)this post will look at a second way of improving your business' T&Cs. Namely establishing time limits for issues/defects.

From time to time your business will encounter customers who raise problems with the work your business has done for them. This is a normal operating issue. You've probably heard some of the most common things such as 'it isn't exactly what I was expecting' or 'I don't like the colour'.

From our experience, the customers who hope to avoid payment don't mention any of these problems straight away but 30 or 60 days after completion, once you're chasing payment.

This can be incredibly frustrating but there is a solution.

I would strongly suggest including a clause in your business' terms and conditions that states your clients agree to notify you, in writing, of any concerns within 7 to 14 days of the job/service being completed.

This doesn't mean that your business would be reluctant to resolve a legitimate complaint after this time frame, however it does seek to isolate any problems as mentioned above.

Unfortunately, this won't eliminate all the contrived problems that your clients raise but it will help to reduce them substantially.

Then, should you still have problems with late payment you can penalise your late or non-payers with the correct level of late payment interest.

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