A company may have to cancel or withdraw a credit account of the customer because of many reasons. A cancellation letter is written by the company when it wants to inform the customer about its decision to cancel the credit account of the customer.
There are many situations when a company is dissatisfied with the customer and want to discontinue the relationship with him. The primary purpose of writing the cancellation letter is to formally terminate the contract of the company with its customers which as a result will allow the company to withdraw the credit account of the customer.
Sometimes, the customer’s behavior is so annoying that you find it hard to put up with it. In such a situation, canceling the credit account seems to be the only solution. The letter to cancel the credit account should maintain professionalism in it.
It should be ascertained that all the necessary details have been mentioned in the letter. The letter should clarify in a very brief sentence that why you are withdrawing the credit account of your customer.
This letter is written when you want to let the recipient know that you don’t want to continue any type of communication with the customer any further. The tone of the letter should be clear so that there is no confusion left for the recipient.
Keep the tone of the letter firm yet friendly. There should not be any rudeness in the letter. Regardless of the reason of canceling, your tone should always be professional and in accordance with the situation
Tips for writing the letter:
- The letter should be typed as most of the professional letters are typed for avoiding any misunderstanding due to bad handwriting.
- The information to be provided in the letter should be authentic and based on true facts. For example, you should give a real and genuine reason that you have for cancellation of credit account. Also, stay specific when you are explaining the reasons.
- Make sure that you have restricted your letter to one page. Writing a long letter is never recommended.
A sample letter
I have been reviewing our aged debtors and it came to our attention that one of your invoices has gone overdue by 25 days. We have been chasing this invoice for last two weeks and failed to get a positive response from your end. You have been breaking your commitments regarding the payments and this is very disappointing for us.
Considering this, we have taken the decision to cancel your credit account with us. We would like you to pay for the overdue invoice urgently. We have changed your payment and trading terms with us moving forward.
MS Word [.docx] | Download
Sample letter 2
Dear ‘Name of Client,
This letter is to inform you that your account, ‘Account/Reference Number’, has been canceled. Due to ‘Reason for account cancellation for example non-payment’, your account has been closed.
In order to discuss your remaining option regarding your account, you are required to visit our organization’s branch in your region. If you have any queries regarding the account cancellation, please contact us at [Contact] or [TEXT.