An endorser who is also known as the transferee is a person who has the authority to sign a negotiable document in order to transfer the ownership to another person. Usually negotiable documents or instruments include checks, transfer deeds, property ownership documents and promissory notes. When a creditor wants the endorser to transfer the funds to him, he writes a demand notice to him and asks formally for the payment.
Introduction to the Demand Letter to Endorser for Payment:
The demand to endorser for payment is very common these days and it is more common because most companies conduct business on credit which means they receive a delivery but pay the supplier later some time. When it’s time for the supplier or any other party to receive the agreed payment from the endorser, they are legally required to either ask him or remind him so that he can make the transfer.
Brief description of the Demand Letter to Endorser for Payment:
When companies do business together all the time, they usually don’t pay each other right on spot but conduct the business on credit. This means that they both agree that the supplier will deliver the order to the buyer but the buyer will not pay the supplier right away but after a while i.e. 1 week or 1 month depending on each deal. In order to make this process smooth, they both agree to make the payment on a specific schedule with dates and amounts to transfer. If the supplier or creditor finds out that the endorser didn’t make the payment on time, he has to inform him formally before taking any legal action against him. He is also required to give him duration to arrange for the payment if he wants to or to prepare for a law suit in the court.
On the other hand, it is also possible that even if an endorser didn’t forget the payment but it’s still sometime for the due date and the creditor just wants to remind him for an upcoming payment. In these situations, the creditor can use this demand notice to endorser for payment either it’s just a reminder or a final warning before taking legal action against the endorser.
Key elements to include in the Demand Letter to Endorser for Payment:
- Name of the sender (creditor) who is demanding the payment
- Name of the endorser who owes money to the creditor
- Details of the endorsement with particulars i.e. dates
- Reference number to the promissory note (if applicable)
- Details of agreed payment schedule and amounts
- Written demand or formal statement by the writer to the endorser to make the payment
- Duration in which the endorser is legally obligated to make the payment
- Results of not making the payment on time i.e. law suit or any other legal action
- Fact that in case of law suit, the endorser will have to pay for lawyer fees and other charges
- Signature of the sender with date
Here is preview of a Free Sample Demand Letter to Endorser for Payment created as fill-able PDF form.
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