For all businesses you need to have in place terms of trade which clearly sets out at the minimum when you expect to be paid and what the consequences are if your client does not pay i.e. the invoice will be handed to a debt collection agency and you will be liable for the collection costs.
Remember having your terms of trade on the invoice does not comply with the Fair Trading Act which clearly states that you MUST disclose your terms of trade prior to a client using your services or buy your products.
You will be surprised how many businesses approach us to recover an overdue account but do not have in place any terms of trade or they are not correctly disclosed which in a lot of cases means that our collection fee is payable by the business not the debtor as we are unable to enforce the fee.
At Global Credit Management we are happy to assist with your terms of trade wording at no cost so just give us a call.