Good Idea? Bad Idea? What you think? Is this legal?
I guess the equation you need to think about is to what extent any policy like this will get you paid (objective) at the cost of alienating customers (unintended effect).
Everyone wants to get paid, but if your policy for ensuring this is costing you business (I think its pretty clear from the conversation above that it would) then you have to wonder about its usefulness.
Same with any 'policy' position. Its a benefits vs cost equation.
My policy:
T&C are sent to EVERY CUSTOMER
NO WORK is carried out until the T&C is signed
(I get around this on pickup and delivery jobs - ie jobs where I never see the customer face to face by using an email form. If they dont have access to email, I use an automated SMS which refers to reading the T&C on the website, to which they have to reply YES, indicating they have read and understood the terms)
No payment, no computer
No extended 'payment terms' to any customer.
Discretionally, I invoice customers I know and trust. Those that dont pay by a reasonable deadline get a daily phone call from me and a friendly reminder.
Oh, and the T&C has a clause about me owning their immortal soul with rider that it may be transferred to a third party for cash equivalent if they dont come up with the goods on time. [evil laugh with reverb]
Bwooohahahahaharrrrgh!
<joking>
Everyone has their own way of doing this. The above with the exception of one thing which I made up - will leave it up to you to discover - is just what I have found works for me.
My customers generally understand that the T&C is not negotiable - in fact I have had no one balk or complain about signing it.
The T&C make the payment terms abundantly clear - whats expected, when its expected, how it needs to occur, and what happens if it doesnt occur. There are no surprises for the customer when its crunch time as the terms are set by the document.
There is an additional clause in the T&C whereby I am legally entitled by local laws to SELL customer property that is not claimed/paid for within 30 days to recoup debt. In the area I work, this is the law. I have only had to do this once, but it was a useful addition as it gave the customer nowhere to go and no grounds for complaint after the fact.
So I guess what Im getting at is, have a look at some established T&C's, get yours airtight, vet the legals, and then give it to every single customer every time you provide a service. This will go a long way toward making sure (a) you get paid and (b) lessen the chance you will be sued if something goes wrong.
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