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Credit hold letter template

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Credit hold letter template
August 23, 2019 Anniversary Wishes 1 comment

Paying by credit/debit card or bank transfer is free, there are no monthly Here are four free downloadable sample collection letter templates.

Late payment letter template, also known as a letter before action. Just click on the download link below to access it. This letter is, of course, a last resort when tackling late payment so we’ve also included the other actions you can take before sending it out.

3 Step Guide to Sending Late Payment Letters

So when should you send out your late payment letter? How stern can you be? And, most importantly, will it actually ensure you get paid?

Step 1.

It’s best practice to start sending reminders before a payment is due. It’s not rude or pushy, it just shows you’re organised and that you expect prompt payment. Zervant’s free online invoicing software can take care of this part.

If the deadline comes and goes, don’t panic. Whilst this is annoying, you’ve still got plenty of options. If you need a little reassurance check what the law says about late payment here.

Step 2.

Time for a polite reminder. This is, after all, a customer. You don’t want to harm your chances of future business with anything too fiery. But it also needs to be clear you want – and indeed expect – prompt payment.

Something along the following lines should get the message across. It’s somewhere in-between an invoice reminder and the final letter you send. You can send it in the post, via email, or both.

“Dear Sirs,

The amount outlined above was due for payment on (DATE). As of today’s date no payment has been received.

If there are any extenuating circumstances, please contact us immediately and we will look into the matter further.

Otherwise we look forward to receiving your payment by (DATE) at the very latest.



Make sure you include today’s date, your contact details, the invoice reference number, and the amount that needs paying. And tailor the tone of message, depending on the type of customer you’re writing to.

Step 3.

If you still don’t get a response, then it’s time for something a little stronger. Use the same wording as above, and include all the relevant information. Mention that the payment is now “considerably overdue”, and that if the matter is not resolved soon you will need to apply late payment charges.

(You can actually apply late interest from the day the payment is late. But in the interest of customer relations it’s best to hold off doing this until you feel it’s absolutely necessary.)

Late Payment Letter Template Download

If your two letters and the payment reminders sent with Zervant’s free online invoicing software don’t get that invoice paid, it’s time for your third and final letter (which is also known as a letter before action). Click on the link to download it.

Here’s a quick explainer of the terms used in the letter (for reference):

  • The “interest rate of 8%” is the statutory interest that you are able to charge by law.
  • The “base rate” is a figure set by the Bank of England, for business to business transactions.
  • Thus the phrase “we are claiming interest at the rate of 8% above base rate” means you are claiming interest at 8.5%. (Read more about how to calculate late payment interest here).
  • The “Late Payment and Commercial Debts (Regulations) 2013” is, according to the Department for Business, Innovation and Skills, “late payment legislation to help promote the culture of prompt payment”.
  • According to this legislation you can claim compensation for late payment as follows:

All you need to do now is fill in the blanks and send it (do it by recorded post if you want things to be 100% watertight). If this doesn’t get your invoice paid then it’s time to seek professional legal advice.

Disclaimer: Our posts are designed to be informative rather than absolute reference points. Although we make every effort to ensure that the information we’ve included here is accurate, please be sure to seek professional legal advice before taking any action on late payment. If you feel our letter is inaccurate or incorrect please let us know and we will correct it.

Why Not Invoice the Easy Way?

Use Zervant to create and send an unlimited number of invoices, for free! Click below to get started.

During this time they should put a hold on letters and phone calls demanding The breathing space requirements apply mainly to consumer credit debt, such as .

How to Write a Credit Hold Letter to a Customer

credit hold letter template

Credit holds are often necessary when customers fail to pay as agreed. The hold prevents the customer from purchasing additional goods or services until you receive payment. However, the letter requires careful consideration so that it accomplishes the goal of collecting on the account while keeping the client as a customer. It is possible that some customers upset by an account credit hold letter may take their business elsewhere. That's why other possibilities for collecting are important before sending the letter as a last resort.

Review the payment history on the account. Confirm that the customer has received numerous payment reminders by mail and by telephone.

Write the letter using an understanding but strong tone as you show appreciation for the customer while insisting on payment. In the first paragraph, thank the customer for supporting your business, and acknowledge that tough economic times or other reasons can cause any customer to fall behind on an account.

Announce the credit hold with the first sentence in the second paragraph so that it stands alone for emphasis. Write that, "However, I regret we must suspend your credit immediately because of non-payment." Or use different wording conveying the same message.

Detail the balance due in the third paragraph and tell exactly what must happen to lift the credit hold. Provide a deadline for payment and tell the customer that assignment to a debt collector is possible.

End the letter by again thanking the customer for his loyalty. Place your direct telephone number in the letter and invite the customer to call to discuss payment arrangements.

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60/90/120 day collection notice samples.

credit hold letter template

MS WordAdobe PDF

Polite First Reminder Letter for a Good Customer

Dear {client};

You have been a valued customer for many years, and you have always been conscientious about paying your bills within the 30-day payment period. This is just a reminder that your payment of {amount} for invoice # {0000} has not been received by our office. If you forgot to mail us your payment, please send it today. If you have already mailed your check, please disregard this notice.

As always, if you have any questions or problems feel free to contact us at {phone number} or {email address}.


{Your Name}
{Your Title}

Collection Letter - First Notice 30 Days Late

Dear {client};

We know that life can sometimes be difficult and staying on top of invoices is not always easy. That’s why we wanted to send you a friendly reminder regarding invoice # {000} in the amount of {$.00} that is currently past due. If you experienced an issue with your order, please do let us know. If you have any questions regarding this invoice, please call us at {phone} or contact us via {email}.

We value your business and are here to help you. If your payment has already been submitted, we thank you and please disregard this notice.


{Your Name}
{Your Title}



Collection Letter - Second Notice 60 Days Late

Dear {client};

We hope that everything is going well for you and that you are enjoying the products that we provided.

However, it has been two months now since we have received a payment and we are wondering if there is some sort of problem we can help you with. Have you already put a check in the mail to us in the amount of {$.00} for invoice # {0000}?

If not, please give this matter your attention today, since we want to be able to extend you credit the next time you shop with us.

Of course, if there is some sort of problem, know that you can contact us at {phone number} or {email} so we can help.


{Your Name}
{Your Title}

Collection Letter - Third Notice 90 Days Late

Dear {client};

We show your account has a past due balance of {$.00} Previous attempts to collect the balance have failed.

Please call me immediately at {phone} to resolve the balance on your account and to avoid having invoice # {000} referred to a collection agency. Your prompt attention is required to resolve this issue.


{Your Name}
{Your Title}


Collection Letter - Final Notice - Collections/Legal

Dear {client};

Your account is now seriously past due. We have sent you numerous payment requests and still have not received your past due payment in the amount of {$.00}.

Please remit {$00} from invoice # {000} within three days or your account will be closed, any outstanding orders will be cancelled, and this matter will be referred to a collection agency.

Please call me within the next three business days at {phone} so that we may discuss how to resolve this quickly.


{Your Name}
{Your Title}

Sample credit letters with must-know tips, easy steps, sample phrases and sentences. Write your credit letter today.

Notice of Payment 60 Days Past Due Template

credit hold letter template

See Also:
Collect accounts receivable
Why Use a 13-Week Cash Flow Report as a Management Tool?
Unlock Cash in Your Business

Accounts Receivable Collection Letter

Always send reminder and collection letters. Letters combined with calls can help speed up your collections! Trigger points for letters may be as follows:

Balance at 30 days receives a reminder letter. Then balance at 60 days receives a harsh collection letter and credit hold. Then balance at 90 days receives attorney letter. Finally, balance at 110 days turned over to collections.

The number of collection letters in a series should be kept to a minimum. Experienced commercialcredit grantors have found that there is a point of diminishing returns, generally reached after the first letter goes unanswered.

(NOTE: Want the 25 Ways To Improve Cash Flow? It gives you tips that you can take to manage and improve your company’s cash flow in 24 hours! Get it here!)

Example of Accounts Receivable Collection Letter

Remind Letter Example A:

January X, 20XX

Dear Company A,

This is a friendly reminder that your account has a past due balance of $X.xx. Attached are the invoices we show to be unpaid; please check your records and if you find that these have already paid, please contact me at 713-555-5555.

If we do not hear from you or receive payment within 10 days from the date of this letter, your account will be put on credit hold and no further services will be provided until all overdue balances are paid in full.

Thank you for your prompt attention to this matter.


Collections Representative

A reminder letter, signed by the accounts receivable (AR) collections representative, once a balance has reached 30 days old and a subsequent, harsher collection letter when a balance reaches 60 days can produce desired results. Should the harsh collection letter not produce results, an attorney letter may be in order as well as the services of a collection agency. The following example is of a harsh collection letter which should be signed by the company’s controller.

Remind Letter Example B:

February X, 20XX

Dear Company X:

We show your account has a past due balance of $X.xx. Previous attempts to collect the balance have failed and as a result, I have been forced to put your company on credit hold. Please call me immediately at 713-555-5556 to resolve the balance on your account and to avoid having this issue referred to a collection agency.



Managing accounts receivable and collecting on-time is just one of the many ways to improve cash flow. The next step to improving cash flow is to download the free whitepaper, 25 Ways to Improve Cash Flow.


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credit hold letter template
Written by Zulkijas
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