It is imperative that any business offering its Customers credit knows exactly who they are dealing with. Is your Customer a Limited Company, a Sole Trader/ Proprietor, a Partnership, a Registered Charity? The easiest way to find out is to send your potential Customer an Account Application Form, This Form can also be used to get your Customer to agree to your Terms & Conditions. Do not think it’s unreasonable to ask a customer to supply you with this information; they are applying for your Credit, imagine trying to get Credit from a Bank without supplying such information.
Terms & Conditions
It is imperative that any Business has its own set of Terms & Conditions; these Terms set out the relationship between you and your Customer. Each industry will have industry-specific Terms, but ALL Businesses should have basic Terms dealing with the following
Data Protection. You must have the permission of an individual to carry out any kind of Credit Search, therefore you need a Data Protection Waiver
Credit Terms. You need to confirm your Credit Terms and confirm when and how those Credit Terms can be cancelled/withdrawn.
Jurisdiction. You must stipulate that in the event of any legal dispute, your transactions are all subject to English Law. If your Customer is not based in England, then without this agreed Term, it is not certain which Court has jurisdiction.
Retention of Title. You must stipulate that your goods remain your property until you have been paid in full.
Late Payment Interest.
You may claim statutory late payment interest at 8% above the Bank of England base rate under the current Late Payment legislation.
The examples above are just a small sample of the complexity needed to create a good set of Terms & Conditions, and the matters that need to be covered by them. NPD can provide a basic Account Application Form and a Standard set of Terms & Conditions for a small fee. Please contact 020 8665 6666 or email info@npdandco.com
