There are many situations and circumstances in which when two companies do business together, one of them doesn’t pay the other one with cash but conducts the business on credit i.e. a process to pay later. Usually when a supplier sends an order to the buyer, the invoice is given to the buyer on delivery and he is asked to make the payment but sometimes when the buyer can’t pay right away, he has to receive the delivery on credit. This way the invoice issued to that buyer is unpaid invoice. In simple words, when a company doesn’t receive cash for a delivery, it’s considered as unpaid invoice.
Introduction to the Notice of Unpaid Invoice:
When a company finds out that a client has done business on credit and even after the due date, he hasn’t made the payment, the company has the legal responsibility and right to send a notice to the client and inform him about the due payment. Usually when this letter of notification is sent to the client who owes money to a company, it includes the invoice for the order or delivery that the client received and didn’t pay for. The formal notification send to the debtor or an unpaid client is known as notice of unpaid invoice.
What you need to do before sending the Notice of Unpaid Invoice:
There are many things that you need to take care before you send any unpaid invoice notice to your clients and customers because even if you realize that you have made a mistake by sending the invoice to an important client, keep in mind that your relationship with that client won’t be the same after that. This is why when you decide to send an unpaid invoice notice to a client, make sure that the invoice is correct and the client in fact owes money to you. Another thing to make sure is to see if you have included the correct amount of unpaid payment on the invoice and there is no mistake in the figures and other elements of the invoice which can embarrass you later. Another most important thing is that even if you are really mad at the client for not paying you in time, there is no need to be harsh in the notice but you need to keep a friendly tone in the content of the letter.
Key elements to include in the Notice of Unpaid Invoice:
- Name of the person who is sending the notice with complete address
- Name of the company with complete address
- Name of the person who will receive the letter
- Date when the notice is being sent
- Details of the due invoice with dates, order and payment amounts
- Next deadline for the payment of the invoice
- Interest for not paying the company on time (if applicable)
- Actions that will be taken against the client if he doesn’t respond to the notice in time i.e. hiring a collection agency or filing a case in the court etc.
- Signature of the sender of the notice
Here is preview of a Free Sample Sample Notice of Unpaid Invoice created as fill-able PDF form,
Here is download link for this Sample Notice of Unpaid Invoice,