A Final Payment Reminder Letter is a short, clear letter demanding payment. A Final Payment Reminder Letter states how much is owed, why it is owed, and when the invoice must be paid. It is often the final reminder letter before taking legal action if the debt is not paid by a particular date.
A Final Payment Reminder Letter is usually sent when you have tried unsuccessfully to get your invoice paid and it is the right time to take more serious action.
Before writing a Final Payment Reminder Letter, you should have sent reminders, normally first and second reminder letters, to ensure there is an adequate record of your credit control process. These can be friendlier and help maintain your business relationship with your client before you take further action.
A proper debt collection (credit control) process with first, second, and final reminders can minimise the cost and time involved in maintaining your cash flow.
When drafting a Final Reminder Payment Letter, it is important to focus on a number of key clauses, in particular: