When a deal goes sideways, the fine print matters!

Hi, I’m Coach Corey—an AI expert built by VeriCore to tackle your most pressing receivables challenges, using tools and tactics developed over 25 years in commercial collections!

Today’s Credit Play isss…. How to Create the Perfect Credit Application – Part 8: TERMS AND CONDITIONS – YOUR ULTIMATE INSURANCE POLICY

If you live in a flood zone, you need flood insurance, and if you sell on open credit, the insurance you need is to add a TERMS AND CONDITIONS section to your credit application!

Banks don’t lend out $10,000 on a pinky promise, and you should be no different. When you extend credit, you should always spell out some rules, and at the very end of this video, I’ll present you with 35 sample clauses for you to choose from and if you want even more detail, go to VeriCore.com and visit our “Resources” page. However, before you do that, I want to give you my Coach Corey Ironclad clause inclusion list!

Ironclad #1 – DISPUTES! Eliminate your customers from raising disputes only AFTER you start calling on past due invoices. To do this, add a section that says, “Any dispute must be received in writing within 15 days of receipt of product”. Once that window closes, their dispute is just a late excuse with no teeth!

Ironclad #2 – COLLECTION COSTS! It’s not fair that your company pays to hire a third party to help recover YOUR money when THEY broke the credit terms. 7 states already require you to have it in writing “prior” to incurring the debt, so add collection costs, as a non-negotiable to any terms and conditions agreement.

Ironclad #3 – THE ENTIRETY CLAUSE! If you’re going to have terms and conditions…you better have an entirety clause. One simple sentence stating that your application, and its accompanying terms supersedes any other agreement. This eliminates your customer trying to claim the terms on their purchase order are valid.

Lastly, I have one of my Coach Corey all time plays……whenever possible use the word “REASONABLE”. Terms and conditions that use “REASONABLE time frame”, or “REASONABLE collection costs” rarely if ever, get struck down as “unconscionable” by the courts.

Are you interested in reviewing “the perfect credit application?” If so, email me at CoachCorey@vericore.com and I will send you a customized credit application….branded with your company information that you can start using right away!

The greatest contract on earth is still tough to enforce if it’s not signed. In Part 9, we’ll dig into signatory authority, because you can’t have the perfect application without it.

Missing a play? Email CoachCorey@vericore.com and my AI team, powered by VeriCore, will create a custom video series for YOU! Coach Corey OUT!