Every time you take on a new client and extend credit, you should be developing a B2B contract to ensure there is no reason that the customer cannot pay you. A B2B contract protects your company in the case of non-payment. If a customer refuses to pay, you have more legal rights with a contract in hand stating that they have assigned and agreed to pay you within the specific payment terms. It will also give the customer more of an incentive to pay their bill on time, knowing that they have signed a contract and legally are bound to it.
So what should you be including in your B2B contract? We’ve highlighted the major points that should be covered below:
WHAT TO INCLUDE IN A B2B CONTRACT
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- Name of the business you’re extending payment terms to
- Name of the accounts payable contact
- Name of the authorizing agent
- Your businesses’ name and contact info
- Account Number
- Detailed description of products or services being purchased
- Work or services rate
- Total cost
- Payment options, including forms of payment accepted by your business
- Payment terms, including due date