Payment Advice Letter to Customer | Word & Excel Templates

What is a payment advice letter?

A payment advice letter is a kind of formal letter that is usually used for formally asking the recipient of the letter to clear an overdue invoice. Usually, the supplier or seller writes this letter to his clients or customers when there is an overdue invoice, and the customer does not seem to clear the payment. With the help of this letter, the supplier or vendor can collect the money from their clients.

Sometimes, the client also writes a payment advice letter to the supplier or vendor. In this letter, the client informs the recipient that he has cleared the pending payment.

Importance of writing the payment advice letter:

The advice letter written for payment is very important in the professional world. In most scenarios, when payment is requested, the seller or vendor reminds their client to make the overdue payment. In this way, this letter serves as a reminder. The client or customer must always pay as soon as they purchase a product or service.

However, if the client purchases something on credit, they are required to clear the payment later. The seller or the manufacturer usually expects their clients to pay them by a specified deadline. However, when they don’t pay, they feel the need to write a payment advice letter.

What are the benefits of a payment advice letter?

In case you don’t know how important it is to write the payment advice letter, we are going to tell you some benefits so that you can understand them well:

Since this letter is written in a professional setting, it needs to remain formal and gentle. Even if you are facing inconvenience, you know that you cannot be rude while writing it. In this way, this letter serves as a kind and polite way of formally demanding payment.
The payment advice letter allows the sender to ask for the payment so that it does not ruin the supplier’s relationship with his clients while asking for money.
If the customer writes this letter to the supplier, he makes sure that he clearly explains that he has made the payment and there is no need to ask for it again.
When the supplier writes this advice letter to his customers, he easily collects funds. Many people feel uncomfortable asking for overdue payments, but the payment advice letter simplifies the process.

How do you write the payment advice letter?

In general, the sender advises the recipient of the letter through the payment advice letter to pay the money which is due on his side. However, this needs to be done effectively. Below you can read how an effective letter can be written.

Mention your objective of writing:

Although the letter’s subject says it all, many people cannot understand why you have written a letter to them unless you mention it. Therefore, as soon as you start the letter, remind the recipient that there is some amount due on his side, and the letter is being written to remind him of that amount.

Give details:

While you formally ask for the payment, you should try to provide details such as the total amount due, deadline, account number where payment is to be deposited, extra charges added to the late payment, and much more.

Tell the client about the payment:

You should specify in the letter that you, the person reading this letter, have to clear the payment. Tell the client that he purchased the services against which this payment is due. This information is important because we know that this letter serves as a reminder.

Explain the penalty:

In this letter, you are required to tell your client what will happen if the payment is not cleared before the deadline. This will let the client know the seriousness of the matter.

Sample Letter

Re. Payment Advice Letter w.r.t Invoice # 344521 Referring to the NDO Connection of C-19 Lite Overdue since March 20XX.

Dear Customer,

This letter is to remind you of the outstanding payment for the service charges of the High Space Internet Connection, which have not been paid since March 20XX.

According to invoice #344521, the NOD Connection of C-19 lite had to pay its service charges for the month of March 20XX till 15th March, but it is regretfully notified that no payment has been made. To ensure the continuity of the service, we urge you to pay the remaining dues to enjoy one of the fastest internet services in San Francisco by High Space Tech.

Referring to all the above, please pay the charged amount by 23rd April 20XX; otherwise, the connection will be discarded. Please let us know if you have already paid the charges along with the receipt through [email].

For reviews and further information related to the connection, dial 9021 from your mobile or call us at +1[X] for customer service. Thank you.

Regards

Leslie Bryn
The Manager
High Space Internet Services
High Space Tech, 23-A Loguss Square,
San Francisco, CA, USA

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

Download