Many of today’s buyers expect credit to be given to them by you or your company as a matter of course. However, these credit arrangements can have a detrimental effect on your cashflow, income and even the survival of your business.
The problem most small business owners find themselves in is that they are fearful of upsetting their customers by refusing to provide credit facilities. So instead, most people potentially place their business at risk by agreeing to the customers demand for credit.
So what is the solution to this problem without upsetting your customers? Cover yourself in advance of and to deter the request by providing your customers with a letter, quotation, notice on your website or on a notice board at your place of work stating the following:
‘To all my customers, please note that we are unable to provide any Credit Terms on any orders we receive.
This Company is not registered with the FCA (Financial Conduct Authority) to provide credit facilities and it is an offence for any Company to offer any forms of credit without a Licence from the Financial Conducts Authority (FCA).
The exact terms put forward by the FCA state: Offering consumer credit without a Consumer Credit Licence is a criminal offence. As well as facing a fine or even imprisonment, any credit agreement will be unenforceable.
Therefore all payment terms are strictly either before or immediately after any orders are completed.
By requesting orders to be carried out by this Company, you agree to accept this as part of our Terms of the Contract.
Thank you for your order and your understanding in this matter.