If you are in the business of selling at some time or another you’re likely to have experienced difficulties with getting paid. All too often, though smaller companies fail to have the right procedures in place to protect themselves against bad debt.

You can protect your business by having comprehensive terms and conditions of business that you use with all customers. A lawyer can draw them up for you. This is true whether you are selling to businesses or to consumers, whether sales are through traditional methods or over the Internet, although there are more peculiarities connected with the Internet if you have a contract or terms of business for off-line trading it’s worth checking whether the same will apply on line.

You should also note that you are now entitled (in a B2B situation) to interest at 8% above base and compensation of up to £100 if someone does not pay on time. You can calculate the interest due on payontime

Woolley & Co provide practical plain English advice to businesses and independent professionals. We will draft terms and conditions for a pre-arranged fixed fee. To discuss your requirements or obtain a quote call us on 01789 267377 or email andrew.woolley@business-lawfirm.co.uk.

Look through the chart below and think about whether your business is protected.