Check your Terms of Trade

Recently I was talking to one of the businesses at the BECIR’s  Turley St hub. I asked how they explained their terms of trade to their customers and was a bit concerned with the reply. We discussed a few ways to communicate their terms to customers more clearly than they were doing at present and I explained why clear terms and conditions should be established with a customer at the beginning of any work.

Clear terms of trade are crucial for small businesses  due to several key reasons. Firstly, clear terms of trade promote transparency, ensuring that both parties, the business and the customer, understand their respective rights and obligations. This transparency minimizes disputes and conflicts, fostering positive relationships.

Secondly, well-defined terms of trade provide legal protection. In the event of a disagreement, having written terms can serve as evidence of the agreement’s conditions, reducing legal risks and potential financial losses.

Thirdly, it aids in managing cash flow. Small businesses often rely on prompt payment to maintain operations, and clear terms can specify payment terms and consequences for late payments, helping maintain financial stability.

Lastly, it builds trust. In a community-oriented region like Ipswich, fair and transparent business practices contribute to a positive reputation, attracting and retaining customers.

If you would like to know more about this topic, please contact the BECIR.Our goal is to enhance the Ipswich community through independent and profitable small businesses.

Michael Crowley

Manager, BECIR