Terms of Trade Template
Clear terms of trade are the foundation of getting paid — they set out when payment is due, what happens if it isn't, and the rights you can rely on later.
What's included
- Understand why written terms of trade matter for recovery
- Identify the core clauses most trading terms should cover
- See how payment, title and default fit together
- Recognise the limits of a generic template
- Know when professional drafting is worth it
9 min read
The template skeleton
These are general headings and sample wording for commercial terms of trade. They are a starting point only. Replace each [placeholder] and add or remove clauses to suit your business.
TERMS OF TRADE — [Your business name] ABN [ABN] 1. Application These terms apply to every sale of goods/services by us to you and prevail over any of your terms unless we agree otherwise in writing. 2. Price and GST Prices are in [$AUD] and [include/exclude] GST as stated. 3. Payment Payment is due [number] days from the date of invoice, to the account we nominate, without set-off or deduction. 4. Late payment Overdue amounts accrue interest at [rate]% per annum, calculated daily, until paid. 5. Recovery costs You are liable for our reasonable costs of recovering an overdue amount, including agency and legal costs. 6. Retention of title Title in goods stays with us until you have paid in full; risk passes on delivery. 7. Default If you do not pay on time or become insolvent, we may suspend supply and require immediate payment of all amounts owing. 8. Personal guarantee (if applicable) [Where signed by a director, refer to the separate guarantee.] 9. Governing law These terms are governed by the laws of [State/Territory].
How the clauses work together
The payment clause sets the due date; the late-payment and recovery-costs clauses give you something to fall back on when it is missed; retention of title protects goods you have supplied but not been paid for; and the default clause lets you stop the bleeding by suspending supply. Each one is weaker on its own, which is why trading terms are usually drafted as a set rather than picked individually.
How to use it
Adopt the terms properly: have customers agree to them at onboarding, reference them on quotes and invoices, and keep evidence of acceptance. Terms that were never brought to the customer's attention are far harder to rely on. To set sensible payment periods and interest figures, try the free Payment Terms Generator, then fold the results into clauses 3 and 4.
Not legal advice
This is a general template and general information only — not legal advice. Terms of trade carry real legal consequences and a generic skeleton will not fit every business or every jurisdiction. Have your terms drafted or reviewed by a lawyer before you put them into use.
Tips
- Written, accepted terms of trade underpin every later recovery step.
- Payment, interest, title and default clauses work as a set.
- Evidence of acceptance matters as much as the wording.
- Generic terms should be reviewed before you rely on them.
FAQ
Do my invoices need to repeat the full terms?
No, but they should reference where the terms can be found and confirm the due date. Acceptance is best secured at onboarding.
Can I just copy another company's terms?
It is risky — terms reflect a specific business and jurisdiction. Use a template as a starting point and have it reviewed. This is general information, not legal advice.
What is the single most important clause?
There isn't one. Payment, title, interest, costs and default each protect a different stage, which is why they belong together.
Templates are a head start — not legal advice
Customise to your business and have important documents reviewed. Need to recover a debt? We can help.