Final Demand for Payment Letter, Sample & Format

Final Demand for Payment Letter

Introduction

A Final Demand for Payment letter can be a very strong letter from a company that is demanding payment from one of its debtors. Businesses often rely on relaxed payment schedules to boost sales and also lend a helping hand to start-ups and other small business that might need help. But sometimes clients owe a considerable sum to another business and fail to pay even after repeated messages, notices and requests.

It is required that such a  letter be written formally with a clinical urgency. The tone of the letter should carry authority and strict intimation of the amount owed. The writer needs to begin the letter by mentioning the previous reminders and requests that have gone unnoticed, ignored or unanswered by the debtor. The creditor can then proceed to mention legal actions and steps that they shall be forced to follow in case of final failure at payment.

Sample Letter

The following is a sample letter for Final Demand for Payment Letter.

From:

Collections Department

Carrier Manufacturing Ltd

99 Sunshine Road
North Las Vegas, NV 89033

January 24, 2011

To:

DeCarlo Constructions

3323 Orchard Street
Saint Paul, MN 55104

Dear Sirs

RE: Final Demand for Payment

Herewith, this letter serves as the final request for an outstanding amount of $1,500 from DeCarlo Constructions which is owed to Carrier Manufacturing Ltd. in respect to the completion of the business transaction of the supply of fifty case barrels, dated 10th December 2010.

It is with regret that we note the previous three (3) reminders for payment that went unheeded by your company. It is with further regret we note that an excellent company like DeCarlo Constructions is withholding payment after receiving the goods which Carrier Manufacturing has supplied in good faith. We have done business with companies of your scale for several decades and have always been at the receiving end of goodwill after our generous hospitality. It is displeasing to note the unprofessionalism with which your company has repaid our good faith in supplying goods without completion of the transaction.

This letter hopes to dispel the increasing doubt over DeCarlo Constructions’ cash flow position with a full payment expected in three (3) days, upon receipt of this letter. If your settlement crossed this letter, please ignore this letter. Otherwise, your case will be handed over to a collection agency to be dealt with. This is the last resort reserved for debtors who refuse to acknowledge the help they have received from respected creditors and we shall be forced to use this against your company and further proceed to blacklist you from future trade with any company of our union.

We look forward to your prompt cooperation at this request.

Thank you.

Yours Sincerely,

Collections Department

Carrier Manufacturing Ltd

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