This First Payment Reminder Letter (Excluding Commercial Debts Act Interest) sets out to record the late payment, the amount outstanding, the invoice(s) in respect of the amount and the breach of credit terms. It requests payment by return or pending payment correspondence to explain the delay.
If the amount outstanding represents more than one invoice a Statement should be enclosed with the letter so that the balance payable can be easily verified. If the debt is not paid, a second more strongly worded reminder letter can be sent, the Final Payment Reminder.
Up to date and coordinated records are essential to effective debt collection. An audit trail of credit related documents can facilitate prompt payment as well as establishing the indebtedness in the event of late or disputed payments and any subsequent legal action.