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Payment letter: How to Write Payment Letter?

A payment letter is a polite way of reminding your customer of their pending bill. Because of busy schedules, some people forget to service their bills in time. In such a case, the individual can write a letter to remind them they are yet to pay the bill. A landlord, business owner, or learning institution can write a letter to ask for payment. Though you are requesting for delayed payments, it’s essential to use polite words in the letter; the individual might not be avoiding paying the bill, they might have forgotten to pay the bill.

To get the format and the words to use in the letter, relying on a sample letter or a template can be the best way out.

What to include in a payment letter

A standard payment letter should consist of these details;

Letterhead

Use company, business or individual letterhead if available. If not, make sure your name and contact details appear at the beginning of the letter.

Subject

The payment letter should have a specific subject showing why you are writing the letter.

Information about the receiver

Include the name and address of the receiver.

Date

The date of writing the letter must feature the letter.

Debtors account number

If the debtor has an account number with your business, you should include it in the letter’s body as a reference.

Main body

In the body of the payment letter, use two or more paragraphs to communicate your message. Make sure you are brief and to the point. You can offer a deadline for the payment.

Letter close

As you end the letter, thank the recipient and express hope they will pay the debt in time.

Finalize by a complimentary close such as Yours, Sincerely, Most respected.

Payment letter format

From,

…………..

…………..

…………..

(Date)

To,

……………

……………

…………….

Subject: Request for payment

Dear (Recipients name)

I write this letter to inform you we have not received your (name the bill) payment for December 2019. If the bill isn’t paid within this current month, the account will attract an extra charge. Failure to pay the bill in this month, you will not continue enjoying our services; you might force us to disengage our services.

It’s our hope you will pay the bill immediately to avoid any disruptions in our services. We will strive to continue offering quality and affordable service to our customers.

Thank you for being our loyal customer.

In case of any queries, contact my office.

Yours

(Signature)

(Names)

(Designation)-Optional

(Company) -Optional

Sample payment letter

MaryGold Care Ltd234,

upper Nile Street, Brandon City MO, 32453,

Phone 313 590 3244,

Email infor@marygoldsale.com

 

3rd March 2019,

Eliud Timloy

360, lower town street

Brandon City MO, 33410

Dear Mr. Timloy

This letter is about our agreed mortgage payment terms. In the past five months, we have been receiving your mortgage payment later than agreed.

As a company, we are pleased you do not default on the payment, but our concern has been the late payments. As highlighted in the contract document, the payments should not be made later than 5th of every month. In the past five months, the earliest we have received your mortgage payment was on 15th.

To adhere to our agreement and to avoid inconveniencing our budgets we request you to make the payments as outlined in our contract.

We hope you will stick to our agreement from next month.

Thank you.

Sincerely,

Martin Chokley

Accounts manager

MaryGold Care Ltd

Types of payment letter

Late payment letter

The letter is written to complain of late payments. In the late payment letter, politely ask the recipient to stick to the agreed terms. You can also forewarn them of any penalties or extra charges should they continue with the habit. A late payment letter should include;
  • The name, address, contacts of the sender
  • Name, address, and contacts of the recipient
  • Amount due
  • Any dire consequences for late payment
  • A deadline for the payments
  • An expression of hope that the client will pay in time

Payment request letter to the client

The letter acts as a reminder of a payment that is due soon. The writer aims at reminding the receiver to pay their dues in the stipulated time to avoid penalties, extra charges or interrupted services. A payment request letter should include;
  • Name, address, and contacts of the sender
  • Name, address, and contacts of the recipient
  • The amount due
  • The due date
  • Any consequences of late payments

Request letter for proof of payment

When payment details are in contention, you can write a letter to your client asking them to submit a piece of evidence they payment the said payment. They should respond by attaching copies or receipt or bank statement showing the amount. When writing the letter, use a polite to since you are just confirming payment that was made. A request for proof of payment should include;
  • Name, address, and contacts of the sender
  • Name, address, and contacts of the recipient
  • Payment date
  • Mode of payment
  • Attach copies of supporting documents

Letter for payment release

Letter of payment release serves as an authorization to make payments to respective accounts. In most companies, the CEO or managing director has to authorize payments to be done to suppliers or other parties. In such cases, they can make their authorization by writing a letter. A letter of payment release should include;
  • Name, address, and contacts of the sender
  • Name, address, and contacts of the recipient
  • Amount of money to pay
  • Name and signature of the authorizer
  • Date and time of writing the letter

Thank-you letter for payment received

If you had been anticipating receiving some money, it’s essential to respond by writing a letter to confirm receipt of the money. In the letter, you must state the amount received and the date when the transaction occurred. A Thank-you letter for payment received should include;
  • Name, address, and contacts of the sender
  • Name, address, and contacts of the recipient
  • Amount received
  • A thank you note
  • Time and date of receipt

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