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Terms and Conditions - Mind Your Own Cashflow

Date: 2010-01-01 | Author: Joshua Feinberg

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ERMS sales are what will keep you in positive cash flow. As a new business, you can not afford to finance other people. You need cash to keep flowing through your company so you must clearly define the conditions of sale from the start.

Terms of Use Tips

Do not be too quick to give credit to new customers. You can really take you to the cleaners if your conditions of sale include generous credit extension. If you do offer credit limits keep relatively low until the client has a solid credit history with you.

Always insist on written agreements as part of your conditions of sale. Verbal promises are for lovers. Even if everyone knows everyone in your town, you should insist on a single page or two of agreement, which states your role, responsibilities and obligations.

Always get a deposit check on any project. Require at least 25% and 50% if you can get.

The bill a week and not when you move it. Many people began to send their bills each week, but they are very busy and it slows down every three or four weeks. The reason for setting favoriable conditions of sale is to get money in your bank account, do not let your customers keep in their own.

Always use your credit policy. When you have a late payment, send notice to past or make a phone call to make sure the invoice is paid.

Make sure you have funds set aside for the inevitable periods of drought. Despite strict conditions of sale, you'll have slow periods. Do not cuaght with insuffienct funds.

The Bottom Line on the Conditions of Sale

Configuration conditions of sale is an important function. You must understand your needs and the total capital which includes the daily monitoring of your cash flow. Make sure your terms of sale are such that you are not caught short. When you work, you expect to be paid and that the best way to protect yourself is key, and paste in a clear and reasonable conditions of sale.

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Tag : Terms and Conditions, Conditions of sale, cash flow, terms, conditions, your cash flow, own, cash

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