Final Payment Reminder Letter

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What is it?

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.

Why do you need it?

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.

Key clauses to watch for:

When drafting a Final Reminder Payment Letter, it is important to focus on a number of key clauses, in particular:

  • Details about you;
  • Details about your client;
  • Date of the letter;
  • Number of outstanding invoices;
  • Total amount owing on the invoice(s);
  • Whether a late payment fee been applied to any of the outstanding amounts;
  • Whether you made previous demands for payment of the outstanding invoices;
  • Date payment must now be made by;
  • How the client should make payment of the overdue amount; and
  • Consequences if payment is not made.

Final Payment Reminder Letter Document

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