Terms of Trade

A Terms of Trade agreement presented to your client prior to working together ensures your client fully understands your legal right to be paid.

Your Terms of Trade let your client know right from the word go when you are to be paid: on receipt of invoice, within seven days of receipt of invoice or on the 20th of the month following (whichever is outlined in the Terms of Trade document). It establishes your expectations and shows you are running a professional business. If a payment is late or missed, the focus can be more courteous and less personal – more on what was agreed rather than on your impatience with the client for their late payment.

Terms of Trade are NOT enforceable if they are only noted on your invoice.

Are you protected?

Well-worded Terms of Trade ensure your client understands they are legally liable, not only for what is owed to you for the goods or services provided but also for interest, late-payment penalties, collection costs, solicitors fees, court costs and so on.

When you have provided Terms of Trade that clearly state your client’s liability, it is more likely that you will be able to recover costs when you seek CollectIT’s help with pursuing the debt.

In the case of a limited liability company, a signed personal guarantee as part of your Terms of Trade provide you with another avenue for recovery.

What if you decide not to bother?

If you do not provide Terms of Trade prior to working for your client, you are reducing the chances of successfully recovering money owing to you, if your client decides not to pay.

What do you do now?

The longer you wait to chase up the money that is owing to you, the less likely it is that you will be fully repaid. If anyone owes you money, contact our office now with your contact details, and we’ll call you back to work out how CollectIT can help remove your unwanted business liability - unpaid bills.

Contact the team at CollectIT via email
or phone 0800 WE COLLECT to make sure you are protected.