There are some situations in which a company changes its payment procedures and it can’t receive the payments as before and the clients are required to adopt the changes and send their payments to somewhere else. This process is known as redirecting the payments.
Introduction to the Notice to Redirect Payments:
When a company wants its clients to send or deposit the next payments in a new account or to a different person as before, they are required to send a formal notice to the clients and ask them to redirect their payments either by explaining the situations for redirecting the payments or just by making a formal request. The notice to redirect payments is used for this purpose. This is a formally prepared letter in which the sender needs to inform the appropriate receiver to redirect the payment to a new account or a different person.
Brief Description of the Notice to Redirect Payments:
You can understand that there are many legal and business related situations when a company either opens a new account for receiving payments from the clients or hire a new employee in the accounts department to deal with the cash inflow and outflow. In these types of situations, it is very important to formally inform the clients and customers and let them know that the company is requesting them to redirect their future payments in order to cope with the changes made in the company. For that purpose, the notice to redirect payments is sent to the clients and customers.
Key elements to include in the Notice to Redirect Payments:
- Name of the person who is writing the notice
- Include Name of the company with complete address
- Name of the client or the receiver of the notice with address
- Formal notice of redirect of the future payments
- Reasons of why the company wants the clients to redirect the payments
- Details of redirecting the payments i.e. new account number, new bank name or another person to send the payments to
- Date when the notice is being released
- Date when the redirect notice will be effective
- Signature of the sender of the notice
Importance, benefits and uses of Notice to Redirect Payments:
There are many situations in which a company can demand to a client to redirect his future payments either to another person or another account that the company operates. For example, a company dissolves and all partners go their separate ways but only one partner. The left partner now operates the company and wants the clients to transfer or deposit the funds and payments to his personal or new company account. Thus, he writes this formal notice to inform them about the change in the situation and makes the formal request to redirect their payments to another account. This notice on one hand, serves the purpose of informing the clients why they need to redirect the payment where on the other hand, it also tells them details and information about where to redirect the payment.
Here is preview of a Free Sample Sample Notice to Redirect Payments as fill-able PDF format.
Here is download link for this Sample Notice to Redirect Payments,