Pictured above: Philip Costigan, from Band Hatton

Legal experts have warned owners of small and medium-sized businesses the cost of failing to establish legally-binding trading agreements could be disastrous.

Band Hatton solicitors, in Station Square, has warned the harsh economic climate has resulted in an increasing number of small and medium sized businesses struggling to secure payments from customers and larger firms.

Many are using the absence of accurate terms and conditions, or in some cases any contractual agreement, to stall or default on payments. This can lead to serious financial consequences for smaller firms and business owners who feel they may be at risk are being urged to seek expert guidance at the earliest opportunity.

Philip Costigan, from Band Hatton, said: "As people really begin to feel the pinch we are seeing more and more small and medium sized firms struggling to secure payment from clients and larger firms.

"While larger firms can absorb these cash deficits without major discomfort, the smaller firms are the ones who really suffer from cash flow problems.

"We are finding that many smaller firms do not have accurate terms and conditions or contractual agreements in place with the companies or individuals they supply and in some cases this is being used as an excuse to default or stall on payment.

"The consequences of this type of delay in cash flow can be disastrous for small firms so it is essential that business owners seek expert advice in this area before it becomes a serious problem."

In order to help business owners Band Hatton is offering a Legal Health Check service with free initial consultations on subjects such as business contracts and trading terms and conditions as well as a number of other important areas including employment law, intellectual property protection and more.

For more information or to sign up for one of the free Legal health Checks contact Band Hatton on 02476 632121.