Payment: Commercial Correspondence

18/05/2012
Commercial correspondence
V Th Dim Phc Khoa Ting Anh Thng Mi
6
PAYMENT
1
18/05/2012
Advice of payment
Short and routine
We have pleasure in enclosing our postal order/ check / bank draft for $ 20 in payment of your statement Invoice No.10 dated 9 Nov 2011 I have instructed my bank today to transfer $1,000 to your account in payment of your 31 May statement. We have drawn a cheque for $243 in payment of your Invoice No.10 dated 9 Nov 2011. This can be paid into your account or cashed at any Post Office.
Advice of payment
More complicated examples
We have pleasure in enclosing our bank draft for $2,000 as payment on Pro forma Invoice No.10. Please advise us when the goods will be shipped and are likely to reach Barcelona. Thank you for your prompt delivery. Please find enclosed our draft for $3,000 drawn on Eastland City Bank, Somerville. Could you please acknowledge receipt? We would like to inform you that we have arranged for a credit transfer through our bank, the Vietcombank, for $1,000 in payment of Invoice No.10. Could you confirm the transfer has been made as soon as the correspondent bank advises you?
18/05/2012
Example Advice of payment

Dear Mr Causio Thank you for being so prompt in sending the documents for our last order, No. 14463. We have accepted the sight bill, and the bank should send you an advice shortly. We have been dealing with you on a cash against documents basis for over a year and would like to change to payment by 40-day bill of exchange, documents against acceptance. When we first contacted you last February you told us that you would be prepared to reconsider terms of payment once we had established a trading association. We think that sufficient time has elapsed for us to be allowed the terms we have asked for. If you need references, we will be glad to supply them. As we are planning to send another order within the month, could you please confirm that you agree to these new terms of payment? Yours sincerely Peter Crane
Acknowledge of payment
Thank you for your draft/ credit transfer for $ 1,000 in payment of our statement/ invoice No.9 dated.... Our bank advised us today that your transfer of $2,000 was credited to our account. Thank you for paying so promptly, and we hope to hear from you again soon. Thank you for sending your draft for invoice No.10 so promptly. We feel sure you will be pleased with the consignment and look forward to receiving your next order. We received advice from our bank this morning that your transfer for invoice No.11 has been credited to our account. We would like to thank you, and would be pleased to help if you need further information, or would like to place another order.
18/05/2012
Delayed payment
Asking for more time to pay State why you have not paid, explain when and how you intend to pay
Begin with the creditors name Refer to the account and apologize in clear, objective language
I am sorry that I was not able to clear my July account We regret we were unable to send a cheque to settle our account for the last quarter.
Explain why you cannot clear the account, not be dramatic

We were not able to settle the account because of the bankruptcy of one of our main customers. The debt was considerable and its loss has made it difficult for us to pay our suppliers.
Delayed payment
You may be able to pay part of what you owe If not, give as precise a date of payment as you can
We will try to settle your invoice within the next four weeks. Once the strike is over, which should be within the next few days, we will be able to clear the balance. As soon as the insurance company sends us compensation, we will settle the account. We expect this to be within the next two weeks.
18/05/2012
Delayed payment
Replying to requests for more time
You may agree to the requests, refuse it or suggest a compromise
Thank you for your letter concerning the outstanding balance on your account. I sympathize with the problem you have had in clearing the balance and am willing to extend the credit for another six weeks. Would you please confirm that the credit will be settle then? I was sorry to hear about the difficulties you have been experiencing in getting components to complete orders, and realize that without sales it is difficult to settle outstanding accounts. Therefore your account has been extended another month, but I will have to insist on payment by the end of July.
Delayed payment
Thank you for your letter explaining why you cannot clear your January statement for $5,000. I appreciate your difficulty, but we ourselves have to pay our own suppliers and therefore must insist on payment within the next ten days. We look forward to receiving your remittance. With reference to your letter of 20 November in which you explained why the outstanding invoice, No.9, has not been cleared, we understand the problems you have been facing in the current recession. However, it was because of the present economic climate that we allowed you a two-month period to settle, and while we would like to offer you more time to clear the balance, our own financial position makes this impossible. Therefore, we must ask you to settle the account within the next ten days.
18/05/2012
Delayed payment
Thank you for your writing to let us know why the May account is still outstanding. Unfortunately, we cannot extend the credit any longer as we allowed a considerable discount for prompt payment. Nevertheless, in view of the difficulties you have been having with your two major customers, we are prepared to compromise and suggest that you clear half the outstanding balance immediately by sending a cheque for $5,000, and clear the remainder by the end of next month. We look forward to receiving your remittance and confirmation that the balance of the account will be cleared in July. I was sorry to hear about the strike which has held up production in your plant for the past few weeks and understand why you need more time to clear your account. Nevertheless, when we allowed open account terms, we emphasized this was on condition balances were cleared promptly on due dates as credit facilities put a strain on our own cash flow situation. However, because of your previous custom with us we are quite willing to allow you to clear half the balance, $5,000, by sending us a sight draft, and clear the outstanding amount by the end of next month. We look forward to receiving your remittance and confirmation.
Requests for payment

The first request
Friendly reminder with courteous tone Send copy of original bill.
We are writing concerning the outstanding October account for $6,000 (copy enclosed), which should have been cleared last month. Please could you contact us and let us know why the balance has not been paid? We think you may have overlooked invoice No.10 for $700 (see copy) which was due last month. Could you please let us have a cheque to clear the amount as soon as possible? If payment has already been sent, please disregard this letter.
18/05/2012

Second request should mention any previous correspondence
We wrote to you on 3 August concerning our July statement, which is still outstanding. Enclosed you will find a copy of the statement and our letter.
State that you have not received payment, or reply Since I wrote we have not received either a reply or remittance from you./ I would like to know why you have neither replied to my letter nor sent a check to clear the outstanding balance. Insist that you receive payment or an answer within a certain time We must now insist that you clear this account within the next seven days, or at least offer an explanation for not clearing it. As we have traded for some time, we have not pressed for payment. However, we must now insist that either you settle the account before the end of this month or offer a reasonable explanation for not doing so.

Third request or the final demand
Review the situation from the time the account should have been paid We have written you two letters, dated 22 October and 20 November, and have sent copies of the outstanding invoices with them, but have not received either a reply or remittance. Explain that you have been patient We had expected this matter to have been settled at least two months ago, but you have shown no indication of cooperating with us. Do not threaten legal action unless you intend to take it. We must now press you to clear this outstanding account. Please send your remittance immediately. We were disappointed that you did not bother to reply to either of our letters asking you to clear your account, and you have left us with no alternative but to take legal action. / We are giving you a further seven days to send your remittance after which we will hand over the matter to our solicitors.
18/05/2012
Points to remember
Letters of advising and acknowledging payment tend to be short and routine If asking for more time to pay, you should apologize, explain why you have not paid, and when and how you intend to clear the balance Three steps are taken to recover a debt

Payment: Commercial Correspondence

Uploaded by

Copyright:

Available Formats

Payment: Commercial Correspondence

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Payment: Commercial Correspondence

Uploaded by

Copyright:

Available Formats

18/05/2012

V Th Dim Phc Khoa Ting Anh Thng Mi

Example Advice of payment

Explain why you cannot clear the account, not be dramatic

Requests for payment

Requests for payment

Requests for payment

You might also like