Letters to write to creditors: how to reach your goal

For a lot of us we need to do this once or more in our life: letters to write to creditors. Whether due to private problems, or financial tightness at the company you work, sometimes your bank account is not in balance with the amount of due invoices.

logopop-letters-to-write-to-creditors

Which action do you need to take and how?

Often, a lot emotions are involved, because financial troubles can turn your life upside down. Whatever action you take, try to control these emotions. If this is too difficult for you, you can consider to ask a good friend, or company to take these actions for you.

Important things to do

  • Don’t do what most people do: put the reminders or final notices into your drawer and let the time pass, then you certainly know that you chances on a good solution diminish. You need to take action soon, … even better: today!
  • Negotiate creditors: The best thing you can do is call the creditor, explain that you have received an invoice, and that you will not be able to pay within the term of payment. Be honest, and explain the reason, and tell when you expect to have the money to pay. Perhaps your creditor proposes a payment plan, if not, you can take the initiative and ask for it. You will see that when YOU take the initiative, you are in control, and the creditor will be inclined to react in a positive way.
  •  letters to write to creditorsMake notes of the telephone call by writing down the date, time, contact person, and the things you have discussed and agreed.
  • Letters to write to creditors: Write a letter to the creditor in which you refer to the phone call. See the example below.
  • Keep your promise by reacting within the agreed term. If you are still not able to pay, explain why, and remain sincere.
  • Make a copy of all the letters you send, and store the correspondence and phone notes with regard to this case.
  • It is wise to make a list of your debts and prioritize these. On the other hand, you need insight in your budget, and the amounts to be expected. This will give you an overview, with which you can give a clear answer to your creditor
  • Never pay cash: transfer your payments via bank account or check. This gives you proof of payment.

Of course you have to realize what the reason is of the financial problems. Sometimes you could have prevented this, by purchasing in smaller portions, or at other moments, or by dealing better prices. Sometimes your financial troubles are caused by other parties, like clients who don’t pay within the agreed term. A reason can be irregular income, especially when you work with large projects, which will be paid out when these are finished. When your suppliers or contractors do not deliver within the agreed term, you might need to letters to write to creditors.

Example letters to write to creditors

Letters to write to creditors: sample letter to creditor no. 1

Company letterhead, or your name and address

Name creditor
Attn. contact person
Address
ZIP CODE and PLACE

Place, Date

Re: Your invoice no. xxxx, date xxxx

Dear Mr Johnson,

The reason I write this letter to you, is that I will not be able to pay the above mentioned invoice within the indicated term.

The reason is that a few of my customers have not paid their invoices in time. One of these customers needs to pay a large amount, and as soon as I have received this, I will be able to settle your invoice.

Therefore, I would like to ask you an extension of payment for 30 days.

I apologize for this course of events, and I hope to hear from you soon.

Yours sincerely,
COMPANY NAME

Your name
your position

 letters to write to creditors: find here assistance

Letters to write to creditors: sample letter to creditor no. 2

Company letterhead, or your name and address

Name creditor
Attn. contact person
Address
ZIP CODE and PLACE

Place, Date

Re: Your invoice no. xxxx, date xxxx

Dear Mr Johnson,

Herewith I refer to the above mentioned invoice, my letter of , as well as your reply of .

Unfortunately, I am still not able to clear off your invoice. Despite the promises of my customer, I still haven’t received the payment. Therefore, I would like to ask you to permit me another extension of payment of 30 more days. I would propose to pay you in installments. I propose to pay you a first installment of 10% of the total amount within the next 10 days.

I apologize for this course of events, and I look forward to your early reply.

Yours sincerely,
COMPANY NAME

Your name
your position

Letters to write to creditors: sample letter to creditor no. 3

Company letterhead, or your name and address

Name creditor
Attn. contact person
Address
ZIP CODE and PLACE

Place, Date

Re: Your invoice no. xxxx, date xxxx

Dear Mr Johnson,

Herewith I refer to my phone call of , in which I indicated that, unfortunately, I will not be able to pay the above mentioned invoice within the indicated term.

Personal circumstances have forced me to spend a large expense on convalescence.

letters to write to creditors examplesWe agreed that you will grant me a postponement of payment till .

I apologize for this course of events, and I thank you for being so understanding.

Yours sincerely,
COMPANY NAME

Your name
your position

The letters you need to write to creditors don’t have to be long, as you can see from the above examples. It is important that you show that you are sincere, and that you meet your commitments. If you need more time, don’t wait till you creditor reacts, take the first step your self, and you have won your creditor’s confidence.

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