Strong Letter for Outstanding Payment

A strong letter for outstanding payment is written by a lender to a creditor to warn him that if he does not pay the outstanding amount, legal action can be taken against him. Most of the companies run their business with a lot of amounts that remain outstanding. They have no issues with some of the late payments usually. But when this amount crosses the threshold level, it will create problems and act as a hurdle in the growth of the company. At that time, it becomes essential to write this letter and remind the customers regarding outstanding payment.

What is the best time to write this letter?

When the payment goes too late, the company has the option to write and remind its customer through a warning letter of outstanding payment using a little hard tone. In this situation, the company warns the customer about the consequences which he may face if the payment gets late further.

What additional things could be incorporated?

Sometimes, it may happen that the customer does not pay attention to any reminder from the company. In that case, it becomes indispensable to incorporate some legal wording also. It has two types of benefits.

  • First, it looks more professional and sounds best to be incorporated in such kind of letters.
  • Second, many countries have their policies that outstanding payments going too late will also be associated with some fine as punishment. So, owing to consequences, the customer will be geared towards paying outstanding payment as soon as possible so as to avoid the fine payment.  

Things to be included in this letter

  • Outstanding amount
  • Payment deadline
  • Next steps which might be taken

Sample -1

21-05-20XX

Mona Albert,
21-H, Eden Street, Central Park
Michigan, USA

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Subject: Letter for outstanding payment

Dear Mona,

We are writing this letter to intimate you that we sent you several warning letters, but you did not respond to any of them. The reason behind writing those letters was that the amount you have borrowed from us is still outstanding which is worth $4000. We called you several times, but you were unavailable each time. Owing to this lack of communication and outstanding payment, we will be forced to take legal action against you.

Although we believe in mutual cooperation and it is very hard for us to take harsh steps like legal action. But sometimes, we have no other choice but to do all this due to customers’ behavior. This year, we have been flooded with outstanding payments from the customers like you and this situation has pushed us back to our own feet. A great number of outstanding payments has prompted us to take such bold steps.

You are again informed to submit a demand draft of worth $4000 against your outstanding payment within 15 days of receiving this letter or otherwise ready to face us in the court. Enclosed is an envelope with the stamped address for your convenience.

Regards,

Anderson

CEO Stars Microfinance Bank


File: Word (.docx) 2007+ and iPad Size 21 Kb | Download

Sample -2

Dear Aliza,

We hereby remind you through this letter that you took a loan worth $5000 from our bank. The payment of this loan was to be made by 01-05-20XX through 36 installments. We regret to say that the payment of $2500 is still outstanding. We sent you a number of reminders before the last payment date. You did not respond to any of the notices. It was clearly indicated that your behavior was noncooperative.

We are giving you more time of 15 days in order to pay the outstanding amount failing which we will be prompted to take the following legal actions against you:

  • Legal debt collection procedure will be initiated by our solicitor and in that case you have to face legal proceedings in court.
  • If the decision of court goes against you, we will publish in all renowned trade journals.

You are therefore suggested to pay the outstanding amount by the due date in order to avoid legal proceedings.

Regards,

Anderson.


File: Word (.docx) 2007+ and iPad Size 21 Kb | Download

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