Payment Advice Letter to Customer

What is a payment advice letter?

A payment advice letter is a kind of formal letter which is usually used for formally asking the recipient of the letter to clear an overdue invoice. Usually, the supplier or seller writes this letter to his clients or customers when there is an overdue invoice and the customer does not seem to clear the payment. With the help of this letter, the supplier or vendor can collect the money from their clients.

In some cases, the client also writes the payment advice letter to the supplier or vendor. Through this letter, the client lets the recipient know that he has cleared the payment that was pending.

Importance of writing the payment advice letter:

In a professional world, the advice letter written for payment holds a lot of importance. In most of the scenarios when the payment is requested, the seller or vendor reminds their client to make the overdue payment. In this way, this letter serves as a reminder letter. The client or customer is always required to make the payment as soon as they purchase a product or service.

However, in cases the client purchases something on credit, they are required to clear the payment later. The seller or the manufacturer usually expects their clients to pay them by a specified deadline. However, when they don’t pay, they feel the need to write the payment advice letter.

What are the benefits of a payment advice letter?

In case you don’t know how important it is to write the payment advice letter, we are going to tell you some benefits so that you can understand them well:

  1. Since this letter is written in a professional setting, there is a need to remain formal and gentle. Even if you are facing inconvenience, you know that you cannot rude while writing this letter. In this way, this letter serves as a kind and polite piece of writing for formally demanding the payment.
  2. The payment advice letter allows the sender to ask for the payment in such a way that it does not ruin the relationship of the supplier with his clients while asking for money.
  3. If the customer writes this letter to the supplier, he makes sure that he clearly explains that he has made the payment and there is no need to ask for it again.
  4. Funds are easily collected by the supplier when he writes this advice letter to his customers. Many people feel uncomfortable when they have to ask for overdue payment. However, the payment advice letter simplifies the process.

How to write the payment advice letter?

In general, the sender advises the recipient of the letter through the payment advice letter to pay the money which is due on his side. However, this needs to be done in an effective way. Below you can read how an effective letter can be written.

Mention your objective of writing:

Although the subject of the letter says it all, many people are unable to understand why you have written a letter to them unless you mention it. Therefore, as soon as you start the letter, remind the recipient that there is some amount due on his side and the letter is being written to remind him of that amount.

Give details:

While you formally ask for the payment, you should try to make sure that you provide the details such as the total amount which is due, deadline, account number in which payment is to be deposited, extra charges added to the late payment, and much more.

Tell the client about the payment:

You should specify in the letter that you the person who is reading this letter has to clear the payment. Tell the client that he had purchased the services against which, this payment is due. This information is important because we know that this letter serves as a reminder letter.

Explain the penalty:

In this letter, you are required to tell your client what will happen if the client does not clear the payment before the deadline. This will make the client know the seriousness of the matter.

Sample Letter

Re. Payment Advice Letter w.r.t Invoice # 344521 Referring to the NDO Connection of C-19 Lite Overdue since March 20XX.

Dear Customer,

This letter is penned to remind you of the outstanding payment as the service charges of the High Space Internet Connection have not been paid since March 20XX.

According to invoice #344521, the NOD Connection of C-19 lite had to pay its service charges for the month of March 20XX till 15th March but it is regretfully notified that no payment has been made. To ensure the continuity of the service, we urge you to pay the remaining dues to enjoy one of the fastest internet services in San Francisco by High Space Tech.

Referring to all the above, it is requested to pay the charged amount not late than 23rd April 20XX otherwise the connection will be discarded. Please let us know if you have already paid the charges along with receipt through [email].

For reviews and further information related to the connection dial 9021 from your mobile or call us at +1[X] for customer services. Thank you.


Leslie Bryn
The Manager
High Space Internet Services
High Space Tech, 23-A Loguss Square,
San Francisco, CA, USA

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