Past Due Notice – PDF Template

Nothing is irritating and uncomfortable like chasing your potential customers or client for money because it consumes a lot of your time. However, sometimes you are forced to pressure your clients and act as if you are chasing them to boost your business cash flow and ensure that your business grows exceedingly. Due to the advanced technology, you do not have to move up and down often, and you can now use the past due note.

The past due notice is hassle-free and encourages your customers to pay you quickly. Remember, you can only send this notice to your clients the following day after confirming the payment as due. After that, if the document recipients do not act, especially after getting the notice. They are likely to face the consequences, such as late payment charges, among many penalties. This detailed post will inform you more about the past due notice.

What Is a Past Due Notice?

A past due notice refers to a document given to a business or an individual when their payment is late. The objective of this notice is to make the debtors aware of the late payment and urge them to pay faster.

What Is a Past Due Notice Template?

A past due notice template is a document that guides you to inform your debtors concerning their late payments and request them to make their payments quickly.

Essential Elements of a Past Due Notice

There are basic essential elements a past due notice needs to include, such as:

Late payment letter 1- Kind nudge

This letter includes:

  • The company name as well as address
  • Recipient’s name and address
  • Date
  • Any given account number for reference
  • Outstanding amount
  • The exact payment due date
  • A short explanation stating no payment has been made
  • Ask the recipient to pay within the specified number of days
  • Payment option
  • Your payment terms reference

Late payment letter 2- Firm reminder

The firm reminder entails the following:

  • The company name and address
  • Your recipient address and name
  • Date
  • Clear reference
  • Outstanding amount
  • A reference to your previous communication
  • A concise explanation that the payment was never made. And include the added charges, which might be in line with you’re the payment agreement
  • Cut off payment date
  • Offer payment options
  • A reference of your payment terms and conditions

Late payment three- Final notice

It is also referred to as a letter before action. It includes:

  • Company name and address
  • Recipient name and address
  • Date
  • Clear reference
  • A breakdown of the outstanding amount plus any additional fees or interest
  • A reference of the two previous letters
  • A brief explanation that the amount is still outstanding and relate this to your payment terms
  • A short explanation of any additional cost
  • The final cut-off date and consequences of violating terms and conditions of the agreement

How to Write a Past Due Notice Letter?

You might be familiar with the past due notice letter, but do you know how to draft one? If not, below are several steps that will guide you on how to write a past due notice letter:

Step 1- Introduction

It is good to start with an introduction featuring a title when writing this letter. Here, ensure you specify individuals who are requesting their payment.

Step 2- The reminder

In the reminder, offer information about the payment. State how much was to be transferred on a specific date. And the duration of time that has passed from the time the account was declared overdue.

Step 3- Account summary

This section requires you to relay your debtor’s account information, and this entails the invoice number, date, amount due, and overdue days, among many details.

Step 4- Payment information

Urge your debtors to ensure they transfer the payment quickly and offer them information on making these transfers. For instance, you inform them to visit your website and make online transfers, and you can also provide them with an address best for payment made via check.

Step 5- Contact information

In most cases, late payment can result from an error from the bank. Therefore, if you experience such cases, kindly offer the contact details of your company manager, who is likely to follow up on the issue. On the other hand, you can also offer this information if the debtors wish to alter their payment schedule.

Step 6- Penalties

Ensure you update your clients on penalties they are likely to face, especially when they fail to transfer the appropriate payment amount. This is usually done to emphasize the seriousness of the entire situation. However, it should be done politely. These penalties entail charge off, late payment fees. Remember, penalties usually depend on the seriousness of the situation.

Step 7- Conclusion

End your notice by expressing hope for the upcoming productive work and your debtors for their understanding and attention to the situation.

A past due notice that is friendly is usually presented as an email or a polite letter. With the steps mentioned above, you can now confidently write your past due notice letter. Remember that this letter content can be changed, but it depends on the situation’s intensity, the overdue duration since the transfer was to be made, and the past due payment.

FAQs

What is a past due amount?

A past due amount is a payment that has not been received by the cut-off time indicated at the due date end. Furthermore, a client who falls under past due is likely to face penalties.

How do you write a past due email?

Below are several steps that will guide you to write a past due email:
 Mention your invoice in your subject
 Commence with a polite introduction
 Reference to the due date and the outstanding amount
 A brief explanation of the payment option
 State and be specific with the next step
When writing this mail, make sure you include the recent due date, late overdue payment, and the final notice.

How can I reduce my past due loans?

You can reduce your past due loan by:
 Making it simple to retry missed and failed payments
 Developing a clear payment reminder plan at each stage
 Offering accurate payment information for your borrowers
 Acting faster with maximized payment visibility
 Provide payment methods with minimal failure rates

Conclusion

If you do not want to chase your clients for money, you must develop an excellent strategy to deal with this problem. Choose to send past due notice letters to your potential clients. This will encourage them to pay and enhance your business cash flow. Start using it today and watch your business boom.