Payment Reminder

Need Help Collecting Debts?

Complete the form below, for a FREE Initial Assessment of your Debt Collection Matter. No Collection, No Fee.

Are some of your customers running late with their payments?
It can be very frustrating and injurious to your financial health if you have a large number of customers who are behind on their payments. If you still value their business and you think that they are just having some cash flow troubles, sometimes the most appropriate thing to do will be to issue a payment reminder. This is a letter which is essentially polite in nature, but reminds your customer, or any other person that owes you money for that matter, that you require payment to be made promptly. Usually a letter like this will also outline the basis of the debts by referring to the relevant documentation give the total amount owing.

Because at this stage of debt recovery proceedings you will not necessarily be aware of the capacity over the long term of the debtor to pay the debts and although they have stopped paying now, they will certainly be likely to pay in the future, it may be best to avoid making threats of legal action or harsh penalties such as interest if the customer is likely to return to being a reliable customer. Also, if you have a record of them not responding to a payment reminder notice, then you will have a better profile of them as a customer and a better idea of if they are likely to be a good proposition for future products or services which your business offers. We have a payment reminder notice available for purchase on this site which we can use for this.

How many payment reminders should you send before commencing legal action?

There are no legal requirements to actually send any payment reminder letters before commencing legal action. It is usually good debt collection practice to send a payment reminder letter as it is a cheap way to collect your debts without incurring legal costs. Sending a payment reminder letter may also be a courteous way to resolve a debt with a client in order to continue business with them.

Buy a Payment Reminder Letter Template

Only AUD$14.95

All documents prepared by
Dwayne Marcus, Lawyer – Debt Collection Specialist
B.A., LL.B., F.A.A.A., T.A.G.I.