One of the most common issues we see as commercial solicitors are clients who have completed work, sent an invoice, and then never heard from their customer again. This can be incredibly stressful, especially when unpaid invoices start to impact cashflow, and more time is spent chasing money than doing the work itself.

Conversely, from the other side of the fence, we often hear from customers who have engaged a business to provide goods or services, only to be disappointed with the outcome. They frequently ask whether they can simply withhold payment, particularly when the goods or services are high-value items like a home build or a new vehicle.

What may surprise many is that both of these scenarios can often be prevented by one simple step: providing a clear Terms of Trade before any work begins.

So, what are Terms of Trade? It’s a document that acts as a rulebook between you and your customer. It outlines the framework for your working relationship, including payment terms, late fees or interest, refund or cancellation policies, and who is responsible if things go wrong.

It’s not enough just to have terms, you must also provide them to your customers before you begin the work or supply the goods, and ideally have them agreed to. While having the terms signed is preferable, in practice they can also be sent alongside your quote or in a confirmation email and acknowledged by the customer. The key is to ensure there is a clear, agreed set of expectations before anything starts.

Many businesses, both large and small, operate without formal Terms of Trade and while it can be tempting to use a free online template to fix this shortfall, generic terms can leave gaps. Every business is different. A café, a construction firm, and a graphic designer all face unique risks, and their terms should reflect that.

If you’re operating without tailored Terms of Trade, now is the time to act. Don’t wait for a dispute or an unpaid invoice. Putting them in place before your next job could be one of the smartest business decisions you make this year.


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The information contained in this article is necessarily of a generalised nature and is correct as at June 2025. Specific advice should be sought in relation to any particular situation.

Article written by Petrea Parkhill