Hi
Here I'm going to focus on reminder letters when referring to payment. The key point in these types of letters is the use of language to reflect the tone of your message. Note that besides reminders for payment, the same concept can apply to any form of reminders, whether that be reminding staff to complete a task, or reminding someone to settle an issue.
When asking for payment from clients it may be necessary to issue several reminders in order to secure payment. It is usually a common practice to issue at least three reminders before commencing with legal action.
The structure of the correspondence is usually as follows:
First Reminder
The debtor is gently reminded that their account is overdue and that payment is needed. It is often common practice to enclose the unpaid invoice or account.
Example:
According to our records, the sum of £4,500 is still outstanding on your account.
We trust that our service was to your satisfaction, and we would appreciate your cooperation in resolving this matter as soon as possible.
Second and Third Reminders
The second and if you would like to still give them an opportunity to pay, a third reminder, is often more strongly worded, often mentioning that immediate payment is needed and urging immediate action.
Example of Second Reminder:
On [DATE/S] I wrote you regarding your company’s unpaid account, amounting to £4,500.
May we please remind you that this amount is still outstanding. We would be grateful if you could send us a cheque to settle payment without further delay.
Example of Third Reminder:
I wish to draw your attention to my previous letters of [DATE/S] about the overdue payment on your account.
We are very concerned that the matter has not yet received your attention.
Clearly, this situation cannot be allowed to continue, and we must urge you to take immediate action to settle your account.
Final Reminder
The final reminder is often the precursor to legal action. Once again immediate payment will be requested only this time a deadline will be given before legal action will be initiated.
Example:
Following my letters of [DATE/S] I must inform you that we have still not received payment for the outstanding sum of HK$4,500.
Unless we receive payment within seven days, we shall have no alternative but to take legal action to recover the money.
We would like your reply as soon as possible.
