Are you a new creditor looking to write effective terms and conditions for your business contracts?
Or are you an established creditor looking to update them? If so, you may struggle with this process and feel the weight of its importance.
You are not alone in this feeling and your fears are justified! Terms and conditions are a vital element in creating an effective contract for your business and can make or break a new company.
This is why it is important that you have some strategies and knowledge behind you as you undergo this process as it is essential for a healthy business!
In this article our debt collection company will discuss 5 tips for writing terms and conditions for a debt and why they can help to create an effective contract.
Write a Broad Draft Terms and Conditions
A great first step towards developing an effective terms and conditions section on a business contract is to write a basic draft.
Undergoing a drafting process can help you to understand and visualise what you want from the T's & C's.
Once you know what it is you want, it becomes a lot easier to turn this idea into a list of the terms and conditions of your service.
To begin the drafting process, it is wise to assess your business as a whole, including its current statistics and goals for the future.
This way, you can ensure you are incorporating both of these elements into your terms and conditions.
Next, you may want to develop a brainstorm or a rough concept on a piece of paper to show you visually the rules you wish to be made clear and true in your terms and conditions.
After this, you can begin to write a draft of the T's & C's you wish to include in the contracts.
Remember, this is an important process so be sure not to rush or simply go with your first draft.
Terms and Conditions must be Reasonable
Another great tip for writing terms and conditions for your business’s contracts is to ensure that you are being fair, reasonable, and polite with them.
Customers like a friendly business owner. Someone who isn’t too rough with their rules so that they have a little flexibility or the ability to approach the owner5 when needed.
Make it clear in your terms and conditions that you are this type of business owner.
Of course, it is vital to yourself and your business that you lay out the rules and get what your business needs from your contracts.
It is also necessary, however, to make sure that customers will agree to these terms and, more importantly, follow them after the transaction has been made.
Make sure that you do not include any terms that are simply unfollowable by your clients, or you risk finding yourself with issues in the future.
If you do have a particularly harsh term to get across, try to be friendly with your client if discussing this particular term.
Don’t Bury Terms and Conditions Details
Another tip for writing an effective set of terms and conditions is making sure that you do not bury key details under information.
A lot of people have experienced a situation in which they have signed a contract, only to later discover that some of the key terms and conditions were in the fine print or difficult to find under a tonne of information.
No one enjoys this experience and, as a business, it can really damage your reputation if you choose to do this!
For this reason, along with several others, it is recommended that you make all of the important terms of your agreement clear in your T's & C's and do not try to hide anything in your contract.
Another reason why this can be damaging to your business is due to the fact that if your clients do not have a clear understanding of their agreement with you, they are much less likely to follow the terms appropriately!
When you are writing your terms and conditions, make sure that any key terms or terms that clients may potentially have issues following are very clear!
Consider the Situation in your Particular Case
Another tip for writing an effective set of T's & C's that benefit your business is to take into account the specifics of the situation.
Every business has a different model and a different way of contracting and communicating with clients.
Make sure that you consider your clients, your target audience for your business, and your contract when establishing your list of terms and conditions.
Effective terms and conditions are detailed and help your customer to establish a clear understanding of your business and how they will interact with it as a customer.
For this reason, they also have to be easy to read and comprehend without the need to ask too many follow-up questions, as this will take up your time and irritate the client.
Considering your customer basis is vital to creating a strong list of T's & C's.
If your business uses complex or field-related language in contracts, invoices, or other documents customers will receive, consider defining these terms in your terms and conditions.
Lay Out the Terms and Conditions Basics
Another tip for writing the terms and conditions for your business contracts is to clearly lay out the basics.
One of the most obvious but important factors in writing a terms and conditions list is clearly establishing the basics and essentials of the contract.
This means that your terms and conditions should include a clear, potentially bolded list of the factors that clients will first need to know before they can interact with your business.
This includes a clear description of the product or service they will receive, the terms of payment, key dates they will need to know, your refund and return policy, any laws that are relevant to your contract, and other things you need them to be aware of.
Writing the terms and conditions for your business is vital.
They may establish the way all future customers behave and act regarding your business.
This can cause a lot of stress for business owners and can be quite a difficult process to undergo.
Don’t be afraid to seek legal assistance or other professional opinions when writing or going over your T's & C's!
Contact our partner litigation lawyers to review your terms and conditions.
Do you have unpaid business invoices or debts to collect?
Advance debt collection is an Australia-wide commercial debt collection agency and credit and accounts receivable management. We can recovery your debts, conduct skip tracing, and manage your accounts receivable. We collect your debts for commission only. This means no collection, no commission. We are professional debt collectors with combined 20 years of experience to help you collect your debts. We are partnered with expert litigation lawyers with years of experience in debt recovery, enforcement, and insolvency. Under the Agents Financial Administration Act 2014 Advance Debt Collection Pty Ltd hold authority number 4583821 to act as a debt collector. ADC Advance Debt Collection® is a registered trademark.