Trading Terms and Conditions for the Industry
Following on from the training courses developed by Bob Wynyard and the SEP team in the Building E-Business Skills in the Supply Chain project completed last year it was determined through extensive research in the industry that many tools were missing from the toolkit of many nurseries in the production space. This led to the development of the Costing for Profit Module, courses that enable nurseries to use cloud based applications to better run their businesses and share data with their customers and some common tool sets.
A number of issues were highlighted in the Supply Chain area that need to be addressed but one of the ones we could address was that of having an industry template for Trading Terms. Earlier this year we worked on developing these terms with a small committee consisting of wholesale and production nurseries that dealt across multiple industry sectors. The terms were developed through a commercial Solicitor with many years of experience in dealing with terms disputes.
These days it is not wise to not have trading terms in place with your customers unless they are cash only customers. Even then your terms of trade should be clearly spelt out on your invoices and receipts in respect of your returns policy, retention of title etc.
What we have arrived at is a set of templates including a credit application form, personal guarantee and indemnity agreement and credit account terms and conditions. These can be used by any nursery who sells into the landscape or retail sectors. There is room to personalise the documents with your logo and company details and should some clauses you think not apply we suggest that you get your own legal advice.
The terms have been reviewed by quite a number of nurseries and it is agreed that they represent the needs of the industry. As they are the intellectual property of the NGINA, it is only members who are given an exclusive right to use these terms.
Application for Trading & Credit Accounts, Credit Account (2) and Personal Guarantee and Indemnity Agreement