Clearly Specifying Your Payment Terms
Part 4 of our series discussing debt collection strategies for funeral directors.
In all funeral arrangements, it is vital that a 'funeral arrangement confirmation' form is completed at the outset, detailing all of the costs and disbursements as accurately as possible.
Good practice would be to ensure that the payment terms are signed and dated by the arranger at the time of completion. The terms should outline that these are only estimates, and may be altered or additional expense incurred. If there are additional expenses, these should be clearly stated on the invoice, which will be sent out shortly after the funeral.
It is advisable to ensure that the payment terms include a settlement date, such as "Within 30 days from date of invoice." They should also include penalties for default such as the following: "The arranger warrants that, in default of payment, they will be liable for all third-party collection costs and simple contractual interest of 2% per month." It should also be remembered that the terms must be signed and dated to be effective.
We, here at Town & Country Legal Services, act for many funeral directors, and have done for many years. If you have any problems in this area, please call us on 01883 212121 or email enquiries@tclsllp.com, and we will do our best to help you. We can also arrange a free Zoom virtual meeting with you if this helps.