Letter Announcing Action(s) against a Client Due to Non-Payment

Payments are to be made in time. In businesses, where everything is properly planned and documented, payment of dues should especially be made in time. But sometimes, businesses have to deal with the clients who are least responsible regarding payments.

If a company serves a client for a project and provides other kinds of services or goods but the client does not come up with due payment in due time, a letter announcing action against him can be written. Though according to business norms, a letter of warning should be written prior to sending the letter for the announcement of action.

Letter -1

Subject: announcing action(s) due to non-payment

Dear Mr./Ms. [name]

I [title] [name] am writing to you on behalf of [organization name]. Our [organization] had done [project name] for you in the period from [date] to [date]. The project was completed in record time and all your requirements had been fulfilled. A time period of [number] months has elapsed since the delivery of the project and we are still awaiting the payment due to us.

Please contact our [department] department within [number] days or our legal team would have to step in. We have forwarded all the contracts which were signed at the time of project assignment to our legal team which clearly states that the payment would be made within [number] days after the handing over of the finished [project].

Contact details of [department name] head:

Phone no: [number]
Email address: [email id]

Apart from taking legal action, the company policy is to blacklist the clients who delay payments without any valid reason beyond the period clearly stated in the contract.

Looking forward to cooperation from your side.

Yours sincerely,

{Title}{Name}

{Date}

2-

Dear Mr./Ms. [name],

I [title] [name] am writing to you on behalf of [organization name]. Your organisation had [availed/purchased] our [services/product] from a period of [date] to [date]. The payment schedule decided by both the company’s finance departments has passed without you making a single payment. The contract clearly states that complete payment has to be made within [number] days after the handing over of the finished [project]. Since this period has passed we are considering legal action against you.

Please contact our [department name] department within [number] days or our legal team would have to step in.

Contact details of [department name] head:

Phone no: [number]
Email address: [email id]

Apart from taking legal action, the company policy is to blacklist the clients who delay payments without any valid reason beyond the period clearly stated in the contract.

Looking forward to cooperation from your side.

Yours sincerely,

Letter -3

[Client’s Name],

We are very sorry and disappointed to write this letter to you. Since we were having good business terms with you, we did not expect that we’ll have to write to you for nonpayment.

[Enter amount] is due on you for [enter project/goods/services]. You have already been sent many letters informing you to pay the pending dues by the given deadlines but no response was made from your side nor was you available on phone calls.

After trying every solution, we are now informing you that we have decided to not have business relations of any type with you in the future, and regarding the payments that you still have to make, we are left with no choice now but to knock the court’s door so that the legal action could be taken. Our team will now meet you there.

[Company Name]
[Senders Title] -Optional-