Remind a customer that payment is past due

Remind a customer that payment is past due

Letters Kate

Sometimes, customers purchase different products on credit. They promise the seller to pay the due payment either in multiple instalments or in lump-sum cash after some time. The customer makes the promise to the seller and also specifies the date by which he will clear the payment.

Sometimes, the relationship between the seller and buyer gets so firm and strong that the seller does not refuse the buyer when he asks to buy things on credit. However, the customer is not always able to pay back in the specified time. When this happens, the seller writes him a reminder letter.

What is it?

A reminder letter reminds the customer to pay the seller back. When the money is past due, the seller fears the customer might have forgotten it, so he writes the reminder letter.

At some point, a dispute arises between the seller and the buyer over the late payment. However, the seller does not always want to do that because he does not want to lose the customer. Writing a reminder letter is a very gentle way to ask for the past-due payment. It does not ruin the relationship between the seller and the buyer and also enables the buyer to realize that he should pay the seller now.

How to write a letter to remind a customer that the payment is past due?

A seller knows the importance of writing a professional-looking and sensible letter to the customer that can convince him to make the payment to the seller. The seller might have never written this letter before. Some representatives also write payment reminder letters to the customers, especially when their job is to collaborate with the customers.

In that situation, if they don’t know the tone to maintain and the content to cover in the letter, they will become the cause of ruining the reputation of the company. Additionally, they will be held answerable to stakeholders. Therefore, we have provided here some tips for writing an effective reminder letter:

  1. Start the letter by telling the recipient that you are writing to remind him that he must pay a specific amount of money. This is an indirect way to gently ask for the payment.
  2. You must specify the amount that the recipient is supposed to pay. This way, you will fulfil the purpose of the reminder letter.
  3. Tell the recipient that you are ready to settle down with payment methods and options. If he cannot pay the full amount, he can pay in instalments.
  4. Tell the recipient to contact you if he has any problems.

Sample letter

Details of the recipient
Name
Contact details
Address

Subject: a reminder for the due payment

Dear Mr ABC,

This letter is to inform you that you have not paid the money to the company that you were supposed to pay on April 1st, 20XX. We hope that you will pay us very soon.

You are due $1000. The due amount includes all additional charges and applied tax. There are no hidden charges.

If you have already paid your account and we could not see it because our system was not updated, please write back or contact us via phone and let us know when you paid so that we can update your account details.

We also devise easy payment plans for our valuable customers on their special request. If you are also going through a financial crisis, you can let us know. We would love to make it easy for you to pay us back in flexible instalments in any timeframe. Our representatives will be available to provide you with assistance and counselling. Please consider this letter as a gentle reminder from the company to you so that you can pay us back if you have forgotten.

We are looking forward to your early response.

Regards,

Sincerely
Name of the sender,
Designation of the sender in the company.


File: Word (.docx) 2007+ and iPad
Size 28 Kb

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