How to write a late payment letter
Cashflow Protector in Late payments | No Comments
Our advice is always to put in place a process that will encourage your clients to pay and so avoid the need for you to write a late payment letter.
We recommend a courtesy telephone call, say 3 days before payment is due to establish that the invoice has been approved for payment. If there are any outstanding issues get those resolved and avoid any payment delay. You need to confirm that payment will be made on the due date and if not when. Don’t forget to confirm what has been agreed by email or payment letter.
Always keep a record of your actions and conversations.
We recommend that your late payment letter is sent no later than five days after the payment date.
Always try to establish who at your client is responsible for raising payments and write to them – not your contact!
Our suggested wording for your first late payment letter is below – if you need help for further letters then please get in touch with us as that is the time you should introduce Cashflow Protector.
Late payment letter
Dear Mr /Mrs/ Ms (name of person responsible for raising payment)
Amount Outstanding £___________
I enclose a copy of our invoice number/s xxxx which is/are currently overdue for payment.
Our payment terms are strictly xx days. Late payment has an impact on our cash flow and our ability to provide the service our clients demand. I would therefore ask you to pay the outstanding amount without further delay.
I look forward to receiving your payment by return.
Yours sincerely,
Your Name
Your Job Title
