1. Begin considering all conceivable legal issues and situations.
Before putting down your terms and conditions, you must first make a list of all the potential legal stumbling blocks or scenarios.
As an illustration
In the event that the client doesn't pay the invoice, what steps will you take?
What will happen if you don't provide the consumer with your services, products, or service when you're supposed to?
What will you do if a customer isn't happy with your products or services?
What will happen if your client's delivery service delivers a product or service that is damaged?
Are there any rewards for clients that pay in advance?
Which interest rate would you prefer to apply to late payments?
What happens if the consumer wants to revise the terms of the agreement right after the two parties do?
Can your client ask for a reimbursement? If so, what scenarios would make this possible?
What will happen if the work's scope expands?
Who will foot the bill if a budget or quote was overestimated?
Who is liable if a purchased item malfunctions?
What course of action will you take if the deal or contract is broken?
It might take some time to consider and create this list, but once you have everything down on paper, you will be able to quickly and easily establish future conditions and terms with the additional clients you will add to your client list. Most importantly, having the best terms and conditions for your business will guarantee that you are paid and can continue operations in the event that legal action is ever taken.
2. Supply ALL ESSENTIAL ASPECTS OF AN INVOICE.
Not only will including the essential components of an invoice speed up the payment process, but it will also address any queries that the client may have about the items or services you provided for them.
Make sure the following is on all invoices you produce:
Your contact details
Contact details for your client
The items or services you offered, together with their prices
The payment methods you accept
Discounts for early payments on invoices or enforcing late fees
Make sure the invoice is addressed to the correct person and that all the information is accurate before mailing it. Any mistakes might potentially delay down the payment procedure and diminish your professionalism.
3. Clearly explain the services or goods being offered, as well as the project's scope.
The clause in the terms and conditions on your invoice that is most pertinent is unquestionably this one. Why? Because it explains specifically what the client is paying you for.
A summary of the time and expenses it took you to complete the task, for instance, would clear up any confusion or issues the client could have about the total amount of the invoice if you were hired to create an internet site for them and it turned out to be more than they had anticipated.
4. KEEP YOUR PAYMENT TERMS SHORT.
It should go without saying, but the more time you give clients to make a payment, the longer it takes for you to get payment, which in turn causes a slower cash flow.
Therefore, if a customer paid you a couple of weeks late after giving you 45 days to collect on an invoice, it would take you two full months to receive payment.
When it comes to invoicing, a payment period of 30 days or even shorter is the norm because it helps keep the money coming in. However, take a look at the invoice requirements for your sector and ask the client when their pay period is. Your payment terms can be established with the use of these elements.
5. OUTLINE WARRANTIES AND GUARANTEES
Any company that sells goods and services frequently will typically offer warranties and guarantees. It gives the buyer assurance and enhances their credibility. Make sure your terms and conditions make any guarantees or warranties you do offer explicit.
Don't forget to talk about issues such when a client or customer breaches a warranty or guarantee.
6. SOUGHT AFTER LATE PAYMENTS
Customers will occasionally fail to pay invoices by the due date. You need to be persistent in finding those specific late payments rather than being passive.
Keep track of your clients' payment due dates frequently, follow up with them by phone, email, or mail if they haven't paid you by the deadline, and include late-fee terms on your invoices, such as charging interest on past-due payments. This is something a reputable cloud-based invoicing software will handle automatically for you.
You could need to write a collection letter, work with a collection agency, or go to court if you can't reach the late-paying customer or if they don't respond to follow-ups. Make all of this information crystal clear from the beginning.
7. ONE SIZE DOES NOT FIT ALL.
Be sure that your terms are specifically created for your business. Remember, your business does not have the identical requirements, resources, and clients that other businesses have. Because of this you can't really just copy and paste the terms and conditions from a commonly used template or another business considering that they probably won't address your particular needs.
A template is really good for starting and directing you in the right directions, but ultimately you have to write terms and conditions that best match your business and clientele.
8. ALWAYS BE PROFESSIONAL AND POLITE.
Being polite can have a beneficial influence on your business. Simply adding a phrase such as kindly pay your invoice within twenty-one days"""" or """"thank you for your business"""" can, in fact, increase the number of invoices getting paid by more than 5 percent! This may not sound like much, but this can result in thousands of us dollars per year right into your banking account.
Aside from assisting you get paid faster, being professional and polite can easily make improvements to your brand's image.
9. MAKE THE TERMS AND CONDITIONS UNCOMPLICATED TO READ.
Keep the language in your conditions and terms simplified and intuitive. Put yourself in the shoes of your clients' customers and realize that they're not all familiar with industry terminology and even bookkeeping terms, like for example """"net 30.""""
Additionally, don't aim to hide every single thing on just one page by using a small font so that your clients are not able to read the fine print. It will look tricky to your client and will ruin your reputation (regardless if there is nothing tricky on your invoice).
10. WHEN IN DOUBT, ASK FOR HELP.
When all else fails to perform as expected, or you wind up in a sophisticated or specialized situation, don't hesitate to seek guidance from your mentor, fellow business managers, or your attorney. These are individuals that have experience in writing terms and conditions and are more acquainted with laws and regulations then you are."""