Why have a Terms of Trade Policy?
The Terms of Trade Policy defines the terms of trade a business will give a customer. That is, it determines the circumstances when the payment of the sale is expected to be received. This policy refers to the terms of trade, not the conditions of sale. Many businesses combine the terms of trade with the general conditions of sale on the back of invoices in small print. But, different customers and situations call for different terms.
The policy covers situations such as the number of credit days given; deposits required; progress payments throughout the job; what happens if payment is not received; and the appropriate time you will advise the customer of the terms. Will it be when the customer gets the quote, or at the initial negotiation of the sale? In addition, issues such as the format of the invoice are addressed. As a result, what is included enhances your chances of getting paid on-time.
Most of all, there is a better chance of employees following the business’s vision due to the rules defined in the policy.
My Experience to Deliver this Course
I am a business manager, qualified trainer, and small business owner. My background has been in office administration and then business management for over 25 years in 20 different industries. Cash flow control and cost management in addition to accounting, budgeting and customer debt collection has been my strengths. I was also a quality assurance manager and my role included writing policies and procedures. So I would like to share my knowledge and experience with small business owners and administration personnel to reduce the chance of writing off a sale by letting the customer know when you want your invoice to be paid.
Join me in the course
I am sure you are like most people who go into business; you are doing it to make money, and you feel you need to give credit to make sales. Debt collecting costs you money. So let's give you a new strategy of running your business by making sure the customer knows when you want to be paid, so you can reduce that the chance of non-payment and keep a good relationship with your customer.
