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 companies run their business with a lot of amounts that remain outstanding. They usually have no issues with some of the late payments. But when this amount crosses the threshold level, it will create problems and act as a hurdle to the growth of the company. At that time, it becomes essential to write this letter and remind the customers regarding outstanding payments.

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 that he may face if the payment gets further delayed.

What additional things could be incorporated?

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

  • First, it looks more professional and sounds best when incorporated into these kinds of letters.
  • Second, many countries have policies that if outstanding payments are made too late, they will also be associated with some fines as punishment. So, owing to the consequences, the customer will be geared towards paying outstanding payments as soon as possible to avoid the fine payment.

Things to be included in this letter

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

Sample -1


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

Subject: Letter for outstanding payment due [X]

Dear Mona,

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

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



CEO Stars Microfinance Bank.

Strong Letter for Outstanding Payment

File: Word (.docx) 2007+ and iPad
Size 21 KB

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 several reminders before the last payment date. You did not respond to any of the notices. It was indicated that your behavior was noncooperative.

We are giving you another 15 days to pay the outstanding amount, failing which we will be prompted to take the following legal actions against you:

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

You are therefore advised to pay the outstanding amount by the due date to avoid legal proceedings.



Strong Letter for Outstanding Payment

File: Word (.docx) 2007+ and iPad
Size 65 KB