Businesses don’t always run on cash payments but most of the time, companies do business on credit which means one receives the products or services but doesn’t pay for them right away but buys some time to make the payment. When this happens, the other company needs to remind the receiver that they need to make the payment. The document or formal letter that informs the company about their upcoming due payment is called a payment reminder notice.
Brief Description of Payment Reminder Notice:
Most of the time, the loan companies and banks send this notice to their clients and loaners who are supposed to make the loan installments on monthly basis and every month before the fixed date comes i.e. 5th of each month, the bank reminds the clients to make the payment on time. Other than that, companies always do business on credit where they agree to make the payment after some time either in full amount or in installments. In such a case, the company will remember that it has to make the payment but the other company just reminds it about the upcoming payment so there is no chance of anyone forgetting about the payment and later explaining the entire situation to the other company.
Elements of a Payment Reminder Notice:
- Name of the person or company who is sending the notice
- Name of the receiving person or company on the other end
- Date when the notice is issued
- The reference number to the notice
- Information about the previously sent notices
- Details of the payment
- Duration in which the company can make the payment without any surcharge
- Consequences that the company will face if it doesn’t make the payment
Purposes of a Payment Reminder Notice:
There is a number of purposes for this notice but the most important purpose is to remind the clients about their upcoming payment schedules. When a company or an individual has to pay a lot of people on monthly basis, it is quite possible that he will forget someone or some company and won’t be able to make the payment on time. To eliminate this common behavior, companies send reminder notices to the clients about their payments so that they can easily remember that they are required to make the payments to the companies that sent the reminder notices.
Where to find a Payment Reminder Notice?
It is very easy to prepare a payment reminder notice and that’s why companies usually do it by themselves. In a company, usually, it’s the responsibility of the HR department that it has to prepare and send payment reminders to the clients of the company. There is no need to hire a professional staff just to make reminder notices. On the other hand, if you want to prepare a payment reminder notice by yourself, you just need to include the above-enlisted elements and just take care of the names, addresses, payments, and dates and you got yourself a very good and official-looking payment reminder notice.
Here is a preview of a Free Payment Reminder Notice Sample created using MS Word,
Here is the download link for this Payment Reminder Notice Sample,