Two important things happen when you say to your client I need you to sign or agree to our terms and conditions of trade:
- you are viewed as professional: your clients now see you as a business owner who has gone to the effort of setting up business documentation with correct legislation to protect clients and yourself. Your clients respect you, and they are clear on what you expect;
- a commitment is formed: when someone signs Your terms of trade, they are committing to the project, payment and agreeing upon your terms, including any outcomes that may arise.
Beyond these two benefits, commitment on paper to your business documentation has a ‘superman and kryptonite’ effect on problematic clients. Bringing out your terms of trade is a great way to avoid issues in the first place, as most people who are going to cause you problems, dispute or be slow on payment will know what business documentation is and why all major companies use this – because you can’t escape paying the bill.
Due to the psychology involved with signing a Terms of Trade (knowing there will be consequences), problematic clients will look elsewhere to greener pastures or the unsuspecting local competitor who will do the job on a handshake and deal with the problems at the other end when payment is due.
If you are a business owner who wants to take control and have a smart, secure and smoothly run business, contact Debt Free to talk about getting the correct documentation in place for your business, as when someone signs your terms of trade, they are then fully committed, just like you are.