Cash is King: Protecting Your Business Finances Through Contracts

It’s often said that cash is king. That’s because cash really is the lifeblood of any business. However great your service or product may be, if the money isn’t flowing properly, your business will struggle to thrive. One of the most effective ways to protect your finances is to make sure your business to business contracts – both sales and purchase – are watertight.

Selling: Make Sure You Get Paid (and Paid on Time)

When you’re selling, your contract needs to clearly spell out:

• What you’re charging – no ambiguity around pricing.

• If and when you can increase prices – especially important in long-term contracts where your costs may rise.

• Payment terms – when you expect payment and what happens if it’s late.

  
  

It’s not just about avoiding disputes, but also about giving your cashflow predictability and protecting your margins. Without these provisions, you could find yourself delivering valuable work but waiting months to see the money, if at all!

Buying: Know What You’re Paying For

On the other side, when you’re the buyer, clarity is just as critical. You need to know exactly what you’re getting for your money, particularly with larger or complex projects. Costs can quickly escalate if deliverables, timelines, or responsibilities aren’t nailed down in the contract.

A robust purchase contract will help you:

• Keep costs under control.

• Avoid paying for work or materials you didn’t expect.

• Ensure you actually receive what you’ve agreed to buy.

  
  

Why It Matters

Getting your contracts right doesn’t just help avoid disputes – it helps you plan, budget, and safeguard your cashflow. In short, strong contracts protect the financial heartbeat of your business.

Reach out to Tracey at info@law-point.co.uk for an initial conversation - no pressure, no jargon, just a helpful chat to explore how we might support you.