When you start a company, you should keep in mind that no matter how hard you try, there will always be some things that won’t go in your way and you have to do extra effort in order to keep things straight on the track. In personal life, many of us always forget to pay our utility bills or we don’t remember we told someone that we will call them back in an hour. In the same manner, the same thing happens in the business when some of your clients either forget to pay you on time or intentionally make the payment late.
In this situation when there is a person that owes you money, you need to remind them about the due payment and the date when they were supposed to make the payment. All of this is done with the formal notice of past due reminder. This is a simple letter that includes the details of the payment, past due date and the next duration or deadline in which you want the debtor to make the payment or else, you will take other steps for payment collection.
Brief description of Past Due Reminder:
There are many important things and factors about the past due reminder that companies and businesses send to their customers, clients and other business partners. First of all, if you run a business, you can understand that you need money in order to continue business and when a lot of people owe you money, it can create big financial crisis for your company. This is why it is really important that when a person doesn’t make the payment after the deadline has passed; you remind them and ask them to make the payment as soon as possible.
Another important reason for sending this reminding letter to the debtor is that you shouldn’t jump to the conclusion that he doesn’t want to pay you the money and you have to go to the court and file a case against him. Keep in mind that when you involve court in the process, it will take weeks and months before you can see your payment actually so it is better to keep things simple and ask the debtor nicely to make the payment even if the due date has already passed.
Key elements to include in the Past Due Reminder:
- Name of the person who is sending the reminder with complete address
- Name of the company with complete address
- Name of the person who owes money to the company with complete address
- Date when the reminder is being sent to the debtor
- Details of the payment that the debtor owes to the company
- Amount of money that the debtor was supposed to pay
- Date when the debtor was supposed to make the payment
- Next deadline for the payment
- Additional fine or interest for late payment (if applicable)
- Steps that the company will take in case the debtor doesn’t respond to this reminder
- Signature of the person who is sending the reminding letter
Here is preview of a Free Sample Past Due Reminder Notice created as fill-able PDF Form,
Here is download link for this Past Due Reminder Notice,