When providing goods or services, it is always preferable to specify your terms and conditions to avoid any dispute later. Thus, it is essential that your Customer understands and acknowledges that the following Terms and Conditions form part of the contract.
- IMPORTANT – DATA PROTECTION ACT/PRIVACY LAWS
To be able to legally list D.B.T (Days Beyond Terms), it is imperative that all members include the Veri-Credit Express Consent Clause words in your Terms & Conditions:
“The Purchaser hereby gives consent for their information to be shared, viewed or listed on any transaction recording system in the event that they issue a dishonoured cheque or fail to pay any pending invoices within agreed credit terms.”
- HOW TO ATTEMPT TO RECOVER COLLECTION COSTS
The most effective way to recover collection costs from your Customer is to incorporate a specific provision in your Terms & Conditions which clearly states that in the event of default the Customer will be liable for the collection costs incurred.
“ In the event of the Customer being in default of his obligation to pay and the overdue account is then referred to a debt collection agency, and/or law firm for collection the Customer shall be liable for the recovery costs incurred and if the agency charges commission on a contingency basis the Customer shall be liable to pay as a liquidated debt, the commission payable by the Supplier to the agency, fixed at the rate charged by the agency from time to time.”
- HOW DO YOU INCORPORATE AN INTEREST PROVISION IN THE EVENT OF NON-PAYMENT?
There is only one fool-proof way to incorporate an interest provision. You must include a specific provision for interest penalty for late payment in Terms & Conditions.
“Interest shall run on the amount of monies outstanding from the date due for payment until the date payment is made at the Central Bank rate plus two per centum.”