Late Payment Penalty Letter Sample

Are you looking for a Late Payment Penalty Letter Sample to use as a template for your own business needs? Look no further! Below, you will find examples of Late Payment Penalty Letter Samples that you can modify as needed to suit your specific situation.

Late Payment Penalty Letter Sample

Late payments can be a major headache for businesses, causing disruptions in cash flow and affecting the overall financial health of the company. When customers fail to pay on time, it is important to send a formal reminder letter to remind them of their outstanding balance and any late payment penalties that may apply.

Here are some common pain points associated with late payments:

• Delayed cash flow
• Increased administrative work to chase payments
• Potential strain on vendor relationships
• Negative impact on credit ratings

Example of Late Payment Penalty Letter Sample:

Dear [Recipient’s Name],

I am writing to remind you of the outstanding balance on invoice #12345, which was due for payment on [Due Date]. As of today, the payment is [Number of Days] days overdue, and we have yet to receive any payment from your end.

As per the terms of our agreement, a late payment penalty of [Late Payment Penalty Percentage]% will be applied to the total outstanding amount for each day the payment is delayed beyond the due date. This penalty will continue to accrue until the full payment is received.

Please remit the outstanding balance of [Total Amount Due] immediately to avoid any further penalties or disruptions in our services. If you have any questions or concerns regarding this matter, please do not hesitate to contact me at [Your Contact Information].

Sincerely,

[Your Name]