Owning and running a business requires contracts to help make it a success. Most business owners have an idea of what to include in such documents but sometimes fail to consider factors that may affect transactions, ultimately reflecting on the business itself.
What are Terms and Conditions?
Terms and Conditions are a part of your transaction that lists down everything that you and the client expect to get out of the deal.
It itemises things such as payment schemes, delivery dates and rates, return and refund policy and the like. Terms and conditions protect both parties in case something goes awry.
What You Should Include in your Terms and Conditions
Think of your terms and conditions as a safety net that you can rely on.
Your contract between yourself and your client helps answer any questions they may have about the goods and services you provide, as well as guarantee that they will hold their end of the bargain.
Do take note that this document is legally binding as long as it is signed by both parties. As such it is highly recommended that you have your contract drawn up by a professional or have it checked first before using it in transactions.
This shouldn’t stop you from drafting one on your own since you should have a clear idea already of how you want a deal to transpire.
Be direct and avoid unnecessary words
No one wants to read a lengthy document.
When your contract is straight to the point and details everything, your client won’t be left on edge about wanting to transact with you.
We can’t assume that the person we’re dealing with is aware or even knows jargon or terms relative to the industry we are in. It is always best to write a contract as simply as possible. There is a psychological reasoning behind this: people tend to trust establishments more when there is a no-frill approach to business.
There are a million ways to say something and if there is a direct approach to conveying your terms and conditions, go for that.
Transparency is always welcome
It is never a good idea to be shady when you transact with clients. Transparency and honesty is what the client is after, and so are you. When you make a guarantee within your contract make sure to follow through. Be open also about limitations; as much as you want to please a customer, you can only do so much when it comes to their satisfaction. State clearly where your limitations lie.
Payment schemes and other details
Probably the most important (often overlooked) part of the contract is how and when you want to be paid.
Depending on what you offer, you can have payment schemes such as 50% down payment upon ordering and the balance when the goods are delivered or when the service has commenced. This is usually done between a burgeoning partnership between yourself and a potentially worthwhile client.
A lot of businesses prefer payment upfront, but clients don’t seem to be too comfortable with this kind of setup; study and decide where you feel will benefit both parties the most.
Another factor to write in detail is how you want to be paid. Nothing beats cold hard cash but with online banking services readily available, take advantage of this. People nowadays try to avoid checks as it will take days for it to be cleared by the bank and there is a possibility of it bouncing.
Returns, refunds, etc.
We previously mentioned, we can’t always please the client and there will always be times when you don’t meet customer satisfaction and expectations.
Make sure to write down instances when refunds and returns are acceptable or else you will always be in a bind. Learn when to put your foot down and gauge when a client is taking advantage of you.
What you will do when they fail to pay
Another integral part of your terms and conditions is what you will do when they don’t pay on time or not at all.
You may penalise the client for not complying. Opt for a penalty fee or charge for every day that passes that they don’t settle their balance. For those that refuse to pay or suddenly go missing, enlisting the help of a professional collector from a debt collection agency in Gold Coast might be your only choice. They may contact the client on your behalf while you continue to run your business.
You can take matters into your hands if you wish to do so by contacting them through email and phone. A straightforward approach such as visiting their establishment or office is usually enough to get them to pay up.
The Importance of Terms and Conditions
As you can see, terms and conditions help you and your business flourish and develop business partnerships with clients you can rely on and trust. Make sure that your contract protects the interests of both parties.
