Updating your terms and conditions

The world has changed a lot since COVID-19. A new reality has emerged that requires adaptation from all of us. This is also the case with your business. Where we used to be able to rely on the ‘normal’ seasonal pattern, logistics processes and ‘normal’ trade, we are now confronted with logistical problems, price increases and special circumstances that change the creditworthiness of customers quickly and significantly.

The moment you have written your orders, you have already determined prices based on production and purchasing. During production you are regularly confronted with large price increases of cotton, yarns and other raw materials.

And what about the sharply and rapidly rising prices of containers, sea freight, air freight and transport by train? A container did cost $2,000 to $3,000 in March 2020, currently the all-time record costs are about $ 16,000 to even $18,000.

But delays in deliveries can also cause problems. Not having a container available on time, delaying the onboarding of the container, as a result of which delivery times are not met, ensures that winter coats only arrive in Rotterdam in November, while you would have liked (and had to) deliver them in September. If your delivery terms are not properly stated and are conditioned, it can have unpleasant consequences.

The current economic climate therefore requires possible adjustments to your General Terms and Conditions. It is important to maintain the right legal frameworks with your customers, in line with current events. If you have any questions, please contact us on  088-5054700 or email us at info@modintcredit.com.