When a client or customer owes money to a company i.e. supplier, the creditor or the person who wants the money or payment has the legal responsibility of informing the client about his late or overdue payment. This job is done with the presentation of the payment demand letter. Usually, companies send this letter via post because this can be used for legal purposes later where on the other hand, if the letter is sent to the client via email, it will be hard to evaluate if he has received it and read it or not.
Brief description of Presentment of Payment Demand Letter by Mail:
If you find out that one of your clients or customers owes you money and even if it’s way past the due date, he hasn’t made the payment yet, you can’t just file a case against him but before you involve legal departments in the dispute, you need to take things to the extreme level with the clients just to make sure that he won’t pay you without the involvement of the court. This is why before you file a case against your debtor, you need to inform him about the payments and ask him nicely when he wants to make the payments. In case, he doesn’t respond to your letters or denies paying you, you have the right to file a lawsuit against him or hire a collection agency to fight on behalf of you.
Usually, when it comes to sending a notification to the client about a late payment, people prefer using post instead of emailing him the letter. There are specific reasons why it’s important to present your demand by post. The most important reason is that when you send the letter by post, the dates are entered in the official record of post office which means if the client claims that you didn’t send the letter, you can use the post office record as proof. Another reason for presenting your demand for payment via mail is that this way you can make sure that the client receives the letter by himself and signs for it so that he can’t claim he didn’t receive the letter.
Key Elements to include in the Payment Demand Letter for an Instrument:
- Name of the client or customer who owes you money with complete address
- Name of the person who is sending the letter i.e. accountant or financial manager
- Name of the company whose behalf, the manager is sending the letter
- Date when the demand letter is sent to the post or mail
- Details of the payment that is overdue by the client with invoices and other references i.e. purchase order etc.
- Payment that is overdue with particulars i.e. payment of each invoice along with total payment of all invoices
- Specific instructions for the customer to make the payment i.e. adjust all invoices in one payment or make short installments etc.
- Duration in which the customer is asked to make the payment
- Legal actions that the company will take in case of no response from the customer
- Signature of the head or manager of the accounts department
Here is a preview of a Free Sample Presentment of a Payment Letter (Demand by Mail) created as a fillable PDF Form,
Here is the download link for this Presentment of the Payment Letter (Demand by Mail),
