email to debtors for outstanding payment

If relevant, the amount of interest due on the debt and how much the debtor has to pay in total When payment was due and how many days the payment is now overdue The invoice(s) the Debt Recovery Letter relates to The body of the Letter sets out details relating to the debt owed by the debtor. The start of the Debt Recovery Letter provides details of the creditor and debtor, including their name and address.

If so, what is their telephone number for arranging alternative payment?Ī Debt Recovery Letter is the first payment reminder you send to a debtor when they owe you money. Will statutory interest be claimed on the debt?ĭoes the creditor offer the option of making an alternative payment arrangement? What is the annual statutory interest rate? If there isn’t a contract and the debtor is a business: Will contractual interest be claimed on the debt? What is the annual contractual interest rate? Is there a contract in place with the debtor? How many days did the creditor have to pay the invoice and when was it due? What are the invoice numbers of the invoices that haven’t been paid (in full)? To whom is the Debt Recovery Letter addressed? When will the Debt Recovery Letter be sent? Will the Debt Recovery Letter be printed on business paper that includes the creditor's business name and address? If the creditor is a company, partnership or LLP, who is signing on its behalf? The creditor’s (ie your) details (eg legal structure, name and address). The debtor’s details (eg legal structure, name and address). To make your Debt Recovery Letter, you will need the following information: When you have all of the details prepared in advance, making your document is a quick and easy process. Just answer a few questions and Rocket Lawyer will build your document for you. Making a Debt Recovery Letter online is simple. Whether statutory or contractual interest is applicable to your Debt Recovery Letter, if you decide not to claim interest in your Letter the Letter will state that you reserve the right to (ie are allowed to) do so in future.įor more information, read Calculating interest on commercial debts. If this is the case, you can only claim interest if the contract sets a contractual rate (ie a late payment rate specified in the contract). You cannot claim statutory interest if your customer is a consumer (ie a private individual not acting in the course of business).

Statutory interest is currently 8% plus the Bank of England base rate and is subject to changes. If you don’t have a contract in place, you can only claim statutory interest and this only applies to business-to-business transactions. If a contract is in place between yourself and the debtor, you should check what it says about interest on late payments. You may be able to claim contractual interest (ie interest at the rate set out in the contract).

Email to debtors for outstanding payment