The essence of a credit application or other contract is to set forth the terms necessary to control your money. It is often the first and very last time that you can establish how you want to do business with your customer.
Accordingly, your credit application, invoices and delivery slips should all set forth your terms of business and reject those of your customers. Establishing your commercial terms can make a difference as to where you can sue or be sued. They can help limit your liability and increase that of your customer. They can control whether there will be a jury trial, a binding mediation or arbitration.
Your terms can establish the amount of interest that you charge (within legal limits). They can also determine whether your customer will be obligated to pay your attorneys fees.
Your terms can require a personal guaranty. They can also address how your customer’s homestead rights are protected.
Your terms can provide you with a security interest in the property that you sell. Your terms can limit your liability to your customer.
Although this may seem very obvious, many businesses miss the opportunity to establish their commercial terms and are then stuck with statutory interest, liability which is not restricted,etc.
For short money up front, you could save yourself substantial money and headache later.
For a review of your existing commercial terms and/or to prepare terms which are in your favor, call 508 560-6900 or email firstname.lastname@example.org.