Good written terms of trade save businesses a lot of money. In a recent example a business did not have their terms of trade in order. They had not been correctly filled out and the personal guarantee section had not been signed.

The debtor company had become insolvent and the creditor could not enforce the personal guarantee. This cost the creditor tens of thousands of dollars which could easily have been avoided by following the procedure the business had gone to the trouble of setting up.

From the part time photographer dealing with jubilant couples preparing for their big day, to the full-blown manufacturing factory contracting with on-sellers, written terms of trade help define who does what, and when.

You will protect your business from disputes caused by misunderstandings and will minimise the cost of any debt recovery action if your customers agree to and sign your terms of trade before you do business.

We have developed terms of trade for a wide range of businesses and can advise your business on the appropriateness of your current terms.

Be aware though that just having terms of trade is not enough. If you have terms of trade then you need to ensure that they are correctly completed before any credit is given so that they can be used to get your money into your bank account where it belongs. You should also ensure that security interests are registered on the Personal Property Securities Register if necessary.