Business Contracts and Payment Processing for a Company in Georgia

Before signing a contract, verify the identity, legal form, registration details, and authority to represent both parties. The contract should clearly specify the services or goods to be provided, scope, quality requirements, deadlines, cooperation obligations, and acceptance criteria. The price, invoice currency, and treatment of VAT, fees, transport, and other incidental costs must be unambiguous. For foreign currencies, specify which exchange rate or payment amount applies and who bears bank or conversion fees. Payment terms should cover due dates, advance or partial payments, payment method, required evidence, and the consequences of late payment. Warranties, liability, contract term, termination, returns, and how changes to the services or goods will be handled should fit the actual business. For multilingual contracts, specify which language version prevails in case of discrepancies. For cross-border business, deliberately choose the applicable law, jurisdiction, or another dispute resolution procedure. Invoices need unique numbers, a date, the parties’ details, a description of the services or goods, the amount, currency, and tax treatment appropriate to the tax status. The contract, order, proof of performance, invoice, and payment should be linked through a shared transaction reference. Regularly reconcile incoming payments against outstanding invoices; partial payments, credit notes, and disputed amounts must be documented separately. Receivables management begins before the due date with clear responsibilities and, in the event of late payment, continues with a payment reminder, documented communications, and a decision on further steps. Long payment terms, large advance payments to suppliers, and reliance on a small number of customers can put pressure on cash flow. Changes, addenda, and verbal side agreements should be documented so that the services or goods, price, and approval can later be verified.