Overdue Payment Collection Reminder Letter
A recovery letter is a formal reminder to the client for the recovery of payment. This letter should contain all the details including the outstanding amount and any interest charged on the outstanding balance. Further actions to be in event of not paying the outstanding amount should also be included in the letter.
- The overdue payment collection reminder letter should include the date on which the amount is overdue and should have been paid.
- Whether interest is payable or not on the overdue amount.
- What is the amount of interest payable?
- What will further actions be taken if the amount remains overdue even after the overdue reminder letter has been sent?
1-
I am writing about the payment for the home renovation project our firm (name) did for you on (dates) which is still pending. You have an outstanding payment of (amount) and the last date for depositing it was (date). It is overdue by (number) months.
This is highly unethical and very unprofessional. The contract signed at the time of assigning this task clearly mentioned that late or overdue payments would be fined at the rate of (number %) per day after the due date. By this rule, your payment has already increased by (amount) and every day that you delay the payment, you are adding an amount of (number) to your bill. We have the right to take you to the court in case of prolonged non-payment.
Please clear your dues by (date) or we would be forced to consider legal action. In case of any queries please get in touch with Mr {name} at {phone number} or {email address}.
Looking forward to a swift and positive response from your side.
2-
We are writing to remind you that your payment is overdue by (number) months. You bought a consignment of our imported fabric on [date] and paid {amount} as a down payment and the remaining amount was to be paid in installments of [amount] over a period of [number of months]. Now this time has passed and we still have not received any installment.
According to the contract you signed with us, in case of delayed payment you would have to pay us a fine of [number] per month. So your outstanding payment till the time of writing this letter on [date], stands at [amount].
Please transfer the remaining amount before {date}, as after that we would be forced to take legal action. For clarity and confirmation of any of the aforementioned points, you can contact Mr. [name] on {phone number} or {email address}. We are also attaching all the receipts of payment received so far.
We would also like to inform you that the company has a policy of blacklisting the buyers who do not pay their dues on time and all our sister firms share these blacklists with each other to protect our businesses from loss. So you might find yourself with no suppliers if you continue this unethical and unprofessional approach.
Looking forward to an immediate and encouraging response from your side.
3-
Dear Sir,
We are writing to inform you that you placed an order with us for [products/services]. The invoice for this order was sent to you who had to be paid on [date]. Unfortunately, we did not receive the payment yet. We just thought to give you a polite reminder in case you forgot to make the payment.
Your outstanding balance is [amount] against the invoice [number]. We are looking forward to receiving the payment in the next 10 days. You can contact us on [number] and advise us as to when should we expect to receive your payment. You also discuss with us, if you wish to make other financial arrangements.
We are accepting payments from debit as well as credit cards also.
If you have already sent your payment and we have not received it yet, we would like to thank you and accept our apologies for any inconvenience this letter may have caused.
Sincerely,
[Manager Name]
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