Trading Terms Setup Checklist

Before you start

Terms only protect you if the customer agreed to them before you traded. Have a clear, current set of terms and a defined acceptance step, not a PDF that sits unread on your website.

• Your current written trading terms, reviewed by a professional where the stakes warrant it.
• A defined acceptance method — signature, online tick-box or a clear acceptance email.
• A place to store the accepted terms against each customer.
• A version number and date on the terms document.

Step 1 — Cover the core clauses

1. Payment terms and the exact due date rule (for example, strictly 30 days from invoice).
2. Late-payment consequences — interest and recovery costs — disclosed clearly and fairly.
3. Retention of title, so goods remain yours until paid for, supported by a PPSR registration.
4. A personal guarantee clause where you need a director to stand behind the company.
5. Dispute and credit-stop provisions, plus how and when terms can change.

Step 2 — Get genuine acceptance

1. Present the terms before the first order, not buried in a later invoice.
2. Have an authorised signatory sign, or capture a clear online acceptance with a timestamp.
3. Confirm the person accepting has authority to bind the business.
4. Where you need a guarantee, have the guarantor sign that section separately.
5. Send a confirmation that records what was accepted and when.

Step 3 — Store, reference and version

1. Save the accepted terms against the customer record with the acceptance evidence.
2. Reference your terms on quotes, order confirmations and invoices so they are always front of mind.
3. Keep a dated, versioned master copy of the terms.
4. When you update terms, notify customers and obtain fresh acceptance for the changes.
5. Make the current terms easy for staff to find and send.

Common mistakes

• Relying on terms printed on the invoice, which the customer sees only after they have ordered.
• Never getting positive acceptance, so there is nothing to enforce.
• Letting an unauthorised person accept on behalf of the business.
• Failing to register retention of title on the PPSR, weakening the clause.
• Updating terms without telling customers or capturing fresh acceptance.

Terms accepted up front and stored properly are the backbone of getting paid and of any later recovery. See the answers library for clause-by-clause guidance. This is general information, not legal advice — have your terms reviewed by a professional for your business.