When companies do businesses together, they usually don’t make the payment right away but they take some time to pay the full amount in installments. This situation is very common in the trading world and companies always enter in agreements before doing any business or credit or with late payments. This contract also includes the clause that if the company doesn’t make the payment on time, the other company reserves the right to file a law suit against it but before doing that, it sends an informing notice to the company about their missed payment. That formal document or letter is called missed payment notice.
Brief Description of Missed Payment Notice:
Companies do businesses on credit all the time because most of the time, when a company is conducting businesses with more than one company, it is not possible for it to make all the payments in full but it has to ask the other clients to agree to receive the full amount in small periodic installments i.e. weekly, monthly or after 3 months. In such situation, when a company or an individual has to make more than one payment every month to different clients and companies, it is very much possible that he will forget some of the companies or at least one of them. When this happens, the other company reminds him about the payment he missed or forgot to make so that they can stick to the routine. When the client receives such notice, he instantly remembers that he did miss the payment and as the notice includes a time frame of a few days to make the payment, he can easily arrange for the money and make the payment in given time period i.e. 2 days, 4 days or 1 week.
Elements of a Missed Payment Notice:
- Name of the company or individual who is sending the notice
- Name of the receiver or the company who missed the payment
- Date when the notice was issued and sent
- Reference number to the notice for future record
- Details of the missed payment
- Extended time to make the payment (optional)
- Show cause of the missed payment (optional)
- Consequences one will face if he doesn’t reply to the notice
Purposes of a missed payment notice:
We have discussed the key purpose of a missed payment notice above in the content that it serves the purpose of reminding the client about the missed payment and to let him know that he has a few more days to make the payment or at least show cause of him not making the payment so the other company doesn’t take any legal action against him.
Where to find a Missed Payment Notice?
Companies don’t have any separate staff for handling notice matter and payment reminding letters but usually it’s the responsibility of the HR department to prepare the missed payment notices and send them to all the clients of a company who owe it some amount of money.
Here is preview of Free Missed Payment Notice Sample created using MS Word,
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