Sample Letter Payment Agreement
When it comes to business transactions, payment agreements are crucial to ensure that both parties fulfill their obligations. A payment agreement is a legally binding contract that outlines the terms and conditions of a payment plan. It clearly states the amount owed, payment due dates, and any interest or late payment fees that may be incurred.
In this article, we will provide a sample letter payment agreement that can be used as a guide in creating your own payment agreement. This sample letter payment agreement is for a small business that has provided services to a client and is now requesting payment.
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Dear [Client`s Name],
We`re happy to have provided our services to you. We trust that you`re satisfied with the work we did for you. However, we regret that we haven`t received payment yet.
As per our agreement, the following are the payment terms:
– Total amount due: [Total amount]
– Due date: [Due date]
– Interest rate: [Interest rate]
– Late payment fee: [Late payment fee]
Please note that interest will accrue on the amount due if payment is not received by the due date. Also, if payment is not received within five business days after the due date, a late payment fee of [Late payment fee] will be charged.
We understand that unforeseeable circumstances may arise that may affect your ability to make timely payments. If that is the case, we request that you reach out to us at least 24 hours before the due date to make alternative arrangements.
We have attached a copy of the invoice for your reference. Please let us know if you have any questions or concerns.
Thank you for your cooperation.
Sincerely,
[Your Name]
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This sample letter payment agreement outlines the payment terms clearly and concisely. It also sets expectations for the client regarding interest and late payment fees. It`s essential to have a payment agreement in place to avoid any misunderstandings or disputes in the future.
When creating your own payment agreement, make sure to customize it to your business needs. It`s also essential to have a lawyer review it to ensure that it complies with the law and is enforceable in court.
In summary, payment agreements are crucial in business transactions, and it`s essential to have one in place to ensure that all parties fulfill their obligations. Using this sample letter payment agreement as a guide can help you create a payment agreement that works for your business.
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