Late payment is a big problem in the business world whether you are on the giving end or the receiving end. Things get complex when one party is not able to make the payment. However, everything can be settled down so easily only if you write a gentle reminder to the other person who is not paying you on time.
What is a late payment letter after a mutual agreement?
When you are unable to get the overdue payment after the other party has promised to pay you on a specific date, you can formalize the entire situation by writing a professional late payment letter. This letter holds a lot of importance because it tells the other party that now things are taking a turn to the worst. Before you start the correspondence with the other party through this letter, you should reassure that you the right address of the recipient. It is also recommended to keep a copy of this letter with you also as evidence.
What should be included?
People often find it hard to get their message across especially when they have to be gentle and polite. They don’t want to ruin their relationship by demanding money. So, they often don’t write this letter and try to resolve the issue without communicating. Below are some details to be considered while writing the delayed payment letter:
The date on which you are writing this letter
It has been told earlier; this letter serves as proof that you have reminded the recipient, but he broke the commitment. So, mentioning the date is extremely important.
Give reference number:
Since you are writing the late payment letter to remind the recipient about the payment that he was agreed to pay, you should provide the details that can help him remind his commitment. Mention your account number as a reference to remind him. Apart from that, you can also mention the date as a reference.
A brief explanation:
Tell the recipient that the payment is still overdue and you are waiting for him to clear the payment. If you are addressing your customer and you have the policy to add charges to the late payment, let him know about it too.
Provide a date:
At last, provide the data by which the recipient is required to make the payment. Tell him that this is the cut-off date and after that date, you will take serious action against him.
Provide him payment options:
Explain to the recipient that by which payment options you receive the payment.
Below is a sample late payment letter in which the client is asked to send the late payment because he was agreed to pay. This letter can also be used as a template to save time and energy. You can also modify it as required.
Name of the borrower/client
Subject: Late payment after a mutual agreement
Dear Mr. ABC,
As per our agreement with each other, you were supposed to pay me by the 10th of this month. Your payment is due for a while now. I have contacted you many times and tried to remind you to clear the payment. In the last meeting, we had a mutual agreement because you were agreed to pay me by 10of April 20XX. However, it has been 5 days since 10th April has gone.
I am very disappointed to see that you don’t value your commitment and very sad to tell you that I am compelled to cancel your all orders with our company.
Please take this letter as a reminder to make the payment that has been overdue for the past many weeks. Although you were required to pay 1500$, due to late payment, extra charges of 100$ will be added to the amount and now I expect you to pay 1600$. Please try to make sure that you clear the payment by 25th April 20XX. If you fail to pay the money by this date, additional late payment charges will also be added to it.
I hope to hear from you soon.
Name of the sender
File: Word (.docx) 2007+ and iPad
Size 21 Kb