Why Payment Terms & Conditions Are Super Important for Your Trade Business

Have you protected your business?

Running a trade business has many risks and one of the biggest is not getting paid by customers.

Like any risk, it’s a matter of understanding its magnitude and taking careful steps to minimise it.

And that’s why putting contractual terms and conditions in place is one of the best ways to protect your business from non-paying customers.

3 Reasons Why Your Tradie Business Needs Terms and Conditions

  1. It makes it super clear to customers

Terms and conditions set the tone for what clients expect from you and what you can expect from your customers.

It should include a description of the works that you are obligated to deliver as well as payments that customers are obligated to make when certain milestones are met.

What this means is, worded right, if a customer does not pay you by an agreed milestone ( e.g. at 20% completion etc), you have no obligation to continue working on the project.

  1. It’s your ultimate protection

Don’t risk a customer that suddenly “can’t remember” what was agreed especially where payments are concerned.

A signed and fully accepted contract should state every single milestone related to receiving payment.

The larger the project, the riskier it is!  Therefore, extra attention should be paid to structuring a contractual payment schedule.

  1. Just in case things go legal

No one wants to deal with a legal dispute but sometimes it’s just unavoidable. It’s added protection for your business if you can show what both sides agreed to in writing.

A good signed contract can help support your case in establishing that you have met all your obligations.

It is best to consult a legal professional to structure your contracts and terms and conditions for ultimate protection.

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