How to write a late payment letter, sample and what it is

What is a late payment letter and what is it meant for? Late payments are common in many business transactions. It is a phenomenon that has led to the failure of many business. . When your clients or customers fail to make early payments, cash will not flow into your business and this will make the most successful business to fail. This may be even worse for a small businesses.



A late payment letter is a document sent to a client or buyer of goods or services provided as a reminder that the date meant for payment is due. The letter may not just act as a reminder that payment is overdue but it may also be used to inform them of the repercussions of not making their payment in timeĀ  for example additional charges.


Dealing with customers whose payments are overdue can be hard at times for a business owner. The late payment letter also helps in reminding the customer how much is still due and how they can make the payments. If the customer fails to pay after sending them the first reminder. It is advisable to make follow ups with at least two other letters. The first letter acts as the first notice and it is usually followed by a second reminder and finally a last demand letter.


It may be possible that the customer simply forgot and it was not their intention to miss payment. For this reason, it is important to remember to always be professional in the letter and use a friendly tone when writing the letter.

You can also read  How to write a company dismissal letter, sample and what it is

NOTE: We will share a sample late payment letterĀ  here and how to write one. This post is only sharing on what a late payment letter is.

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