Effective Contracts

An effective contract for the supply of your goods and services is the foundation for smoothing inwards cash flow.

An effective contract will cover a range of things in addition to debt collection. These include The Personal Property Securities Act, The Consumer Guarantees Act, and the Construction Contracts Act in appropriate cases. Delivery, dispute resolution, overdue procedures, payment terms, returns and refunds policy are among the other considerations.

The general content of an effective contract can vary but several credit management features are usually present:

• The customer’s agreement to pay the debt collection and legal costs;
• The customer’s agreement to pay interest on overdue accounts;
• Retention of title until payment; and
• Grant of security interest

A personal guarantee is also recommended and should be a separate document.

Such terms give a customer incentive to pay your accounts with less delay and expense and give us more tools with which to encourage payment.