Payment terms. Is it full or part payment in advance or payment in arrears? You could offer customers a discount for paying by the due date and/or for paying within, for example, seven days of the invoice date
Credit limits and credit periods. If you don't agree a credit period with your customers, the law sets a default period of 30
Your right to charge interest on late payments and claim compensation for debt recovery costs
Liabilities – what does the company owe? Notes payable, taxes payable, loans; current or long term
Request for Quote (RFQ) - A document which can be used to obtain pricing from suppliers when a formal bid opening is not required including discretionary, sole source, single source or emergency purchases.
Request for Proposal (RFP) -A type of bid document which is used for procurements where factors in addition to cost are considered and weighed in awarding the contract and where the method of award is "best value".
Scope (or Statement) of Work - A statement outlining the specific services a contractor is expected to perform, generally indicating the type, level, and quality of service, as well as the time schedule required.
Competitive Bid (or IFB - Invitation For Bid) - A common method of source selection is the offer of prices and specified elements of performance by vendors competing for a contract.
A written contract between buyer and seller detailing the exact merchandise or services to be rendered from a single vendor.
Also known as a P.O.
Could be a contract
Legally binding document
Bill of Lading – evidence that a transport company or carrier received goods from a shipper
Indicates the shipment method and terms for getting the merchandise to the final destination
Also known as BOL, B/L or Waybill
FOB (Free On Board) - terms establish a contractual arrangement in which title (or ownership) of goods is transferred between supplier and purchaser at the F.O.B. point.
Also Known As: Free On Board, Freight On Board
FOB Destination: Seller pays the freight.
FOB Factory: Buyer takes title once shipped and pays transportation costs from factory to store.
Legal Terms and Conditions
Legal/Terms of Service
Payment and Returns
Copyright and Intellectual Property Policies
For future reading….
Talent is not enough: Business Secrets for Designers by Shel Perkins