Reviewing and Drafting Terms of Trade

Please note - Due to amendments to the Credit Contracts and Consumer Finance Act, the contents of this page and our Terms of Trade services are currently under review. If you have any queries regarding this, please do not hesitate to contact our team directly -

Are your Terms of Trade legally binding?

Are you fully protected for every situation that could arise?

Do you understand the risks of not having complete and current Terms of Trade?

At Cedar Credit, we can develop Terms of Trade packages for companies, specifically designed for their business and their industry.

We understand and appreciate that no two businesses are the same, which is why we tailor each document to suit the specific business activities - no Terms of Trade documents are ever the same.

Outlined below is further explanation on the importance of water-tight Terms of Trade and how to contact us for a free review of your Terms of Trade and other credit management documentation to see if you’re 100% protected.

Terms of Trade

~ An Essential Business Tool ~

What are Terms of Trade?

The purpose of Terms of Trade documentation is to set out the essential conditions under which the parties will do business.  Ideally, Terms of Trade provide a balance between protecting the rights of the business selling goods and/or providing services, while still being easy to conduct business with.

Terms of Trade should be easy to understand and free of legal jargon.


Terms of Trade clarify the rights and obligations of both parties, and create certainty between the buyer and the seller.

Implementing such documentation minimises the potential for misunderstandings and disputes to arise. Significant time and money can be wasted when dealing with a disputed account, not to mention the damage that can be done to your business's reputation.

By adopting tailor-made Terms of Trade, a business can create consistency of contractual agreements across their customer base. Legally binding Terms of Trade provide a certain amount of security regarding debt recovery following the supply of goods or services.

Customising Terms of Trade

There is no such thing as a standard approach when developing Terms of Trade documentation. While all Terms of Trade should address key clauses such as payment and pricing expectations, it is essential that they be tailored to meet your specific business activities. The more that Terms of Trade can be tailored to the specific business, the more effective and useful they will be.

What should Terms of Trade include?

There are certain, essential clauses that should be addressed in any Terms of Trade documentation, irrespective of the size and nature of the business. These include:

Quotations, orders & acceptance

  • Price & payment terms
  • Guarantees, warranties and liabilities
  • Delivery arrangements & any costs of delivery
  • Ownership of goods
  • PPSR (Personal Property Securities Register)
  • The passing of risk in the goods

Dealing with Regular Customers

As most businesses have regular customers to whom they supply goods &/or services on an on-going basis, it is not necessary to have separate Terms of Trade signed off for each & every transaction that occurs between the two parties. In this situation, Terms of Trade can be modified to reflect that they apply to all transactions between the parties.

Personal Guarantees from Corporate Customers

Where you have clients who are registered companies, you should obtain guarantees from the Directors and/or Shareholders. Under the guarantee the Directors/Shareholders will be personally liable for the debts incurred by the company, further protecting you & your business from the instance of bad debt write off.

Privacy Act Authorisation

As part of robust credit management processes, your business will want to carry out credit checks on all its clients before extending credit. Conducting credit checks enables your business to assess the risk in doing business with potential customers. Your business must be authorised to undertake these checks by a specific Privacy Act authority.

We Can Help You

If your business does not have Terms of Trade, Client/Credit Applications, Personal Guarantees, Quote/Estimate forms, etc., or you believe your existing documents need updating, we can help. Terms of Trade packages need to be legally binding to be effective; therefore, we have all of our documentation signed off by our in house legal team. Terms of Trade are a vital risk-management tool. They facilitate effective interactions and positive experiences between your organisation and your clients, leading to profitable growth in your business.

FREE Review of your Terms of Trade

We will provide a free review of your current Terms of Trade, Client/Credit Application, Quote/Estimate Form, Invoice, Personal Guarantee, Work Acceptance Form, etc.

Drafting Terms of Trade

If you don’t already have a Terms of Trade document or wish to make amendments to your current document, we can arrange for one to be drafted for you.

To take advantage of a FREE REVIEW of your Terms of Trade documentation, please contact us via the contact form, or phone 0800 729 722, email