Set the rules for offering trade credit before accounts become overdue

The main risk is usually not the invoice itself, but the lack of a clear contractual framework for granting credit in the first place. Invoices may show what is owed, but they often do not deal properly with when credit is approved, whether limits can be changed, what happens on default, or when further supply can be stopped. Credit application terms can bring those points into one document that customers agree to before trading on account. That gives your sales and accounts process a clearer legal basis if payment issues arise later.

These terms commonly cover the customer's application for credit, payment deadlines, overdue amounts, interest or charges where appropriate, default triggers, review of credit limits, suspension of further supply and the business's rights if the account is not kept in order. Depending on how you trade, they may also deal with authority to place orders, linked trading terms, account statements, promise or promises from individuals, and how invoice disputes are raised. The exact wording depends on whether you supply goods, services, recurring work or a mix of different order types.

The drafting depends on your real trading flow. Relevant details include whether customers complete an application form, who approves credit internally, whether you use deposits or staged billing, how often customers place orders, whether account limits change over time and what usually happens when an account falls behind. If your business relies on repeat orders, director support, linked supply terms or industry-specific payment practices, those points can affect the structure of the document. The aim is to produce terms that fit your process rather than generic wording that sits awkwardly beside it.

Templates often cover basic payment wording, but they may not reflect how your business actually grants and manages credit. For example, a generic form may say little about reviewing credit limits, stopping future orders, linking the application to your trading terms, or dealing with authority issues where someone applies on behalf of a company. Those gaps tend to matter most when an account becomes difficult. A tailored draft or review is usually more useful where you have repeat trade customers, variable order values or a more structured internal approval process.

That depends on how much existing material you already have and how settled your credit process is. If you have a current application form, trading terms or internal process notes, those can help shape the work more quickly. If the document needs to be built around several connected steps, such as approval rules, promise or linked supply terms, it may take longer because the wording needs to work consistently across the documents. Once instructed, we can confirm what information is needed and give a timeframe based on the complexity of your setup.

Working with us is simple. Start by submitting an enquiry through our website using the form at the top of this page or on our Get Started page. A legal project manager will review your enquiry within 1 business day and reach out to understand your needs.

They'll send you a fixed fee quote outlining costs, scope, and timing. If you're happy, you can accept and sign our engagement letter online. Once that's done, we'll connect you with an expert lawyer who will complete your project via email, phone, or video chat, with the timing confirmed in your quote.

If you're not looking for help with a specific matter, explore our platform, which offers free templates, tools to get your business set up, and even a free tier to get started. Whether you need legal support or just want to browse resources, we've got you covered.

At Sprintlaw, our pricing is transparent and designed for startups and small businesses. Many one-off legal services, including document drafting and reviews, are provided for a fixed fee with an upfront quote before you proceed.

Prices typically range from £100 to £1,500 depending on the complexity and scope of the work. For ongoing support, Sprintlaw Memberships include options such as legal templates, consultations, a legal helpline and credits for services.

If your project is larger or more complex, we will provide a tailored quote after understanding what you need.

Sprintlaw UK operates fully virtually, with the team working online across the UK to provide support to startups and small businesses nationwide. Many of our team are based in London and often meet at co-working offices, but our operations remain fully digital, ensuring flexibility and efficiency for both our clients and team.