Top 5 Tips to Write a Payment Terms Change Letter to Customer that Works?
Have you ever come across clients who always delay their payments? Not only can it hurt your revenue, but it also interferes with your daily operations and hampers your business growth. Writing a responsive payment terms change letter to the customer may help you reverse the effects and get clients to pay on time!
However, it is a delicate situation, primarily if you want to continue doing business with them. The trick is to pen a considerate letter that helps you maintain relationships and induce faster payments!
We have covered the best five tips to write a letter to a customer reducing credit terms below. Also, there is a template and a sample to help you start drafting and sending these letters effortlessly!
Let us dive in!
How to Write a Payment Terms Change Letter to Customer?
This letter follows the same format as your other formal messages, but the content may vary. Here are the steps to give you a headstart:
Letterhead
Write your letter on your company letterhead to announce the credit terms change, grab the reader’s attention, and get them to respond.
Also, it must include your contact number, mailing address, website link, and email ID.
Use the correct mailing address so customers can write back if needed.
Recipient’s Mailing Address
Print your mailing date on the first line of your letter. Then, write your recipient’s delivery address after leaving one line. Remember to keep a clear distinction between your and the customer’s address. When using windowed envelopes to send your payment terms letter to customer, their address must be visible from the outside.
Often, businesses mail to incorrect or outdated addresses unknowingly. Though you can get your letters back and reship them, this process can cost you a lot of money and time. Using PostGrid’s address verification API before sending your payment terms to change letter to customer can help you ensure deliveries to the correct people!
Subject
The subject line is optional, but it helps you inform the customers upfront about your letter’s intent. Try keeping it short and placing it above the salutation.
Salutation
Use appropriate titles, like Ms, Mr, Mrs, Dr, etc., and make your salutation personalised. Avoid using phrases like- “Dear Reader” or “Dear Customer.”
Introduction
Your first paragraph should explain why your company is changing payment terms with customers and from when. If the customer owes you some amount, mention it in this paragraph with the last payment date.
Body
The second paragraph of your letter to customer reducing credit terms can help you elaborate on the reason for the change. Try to tell them that you are open to making revisions if they pay the due amount immediately.
You can also provide the details of a concerned person the readers can contact if they have any questions.
Closing
Thank your customers and depict that you wish to continue your business relationship with them.
Signature
Add your signature at the end of your payment terms change letter to customer, followed by the enclosures (if any).
Here is a template that helps you compile all the above aspects:
[Letterhead]
[Date]
[Recipient’s full name]
[Recipient’s mailing address]
[Subject]
[Salutation]
[Introduction – not more than two to four sentences]
[Body of your payment terms change letter to customer]
[Closing]
[Signature]
[Enclosures – include the type and number of the document]
Top 5 Tips to Write a Response-Driving Payment Terms Letter to Customer
There are some things to consider before you write, print and mail your credit change letters to your debtors and other customers, and they are
#1 Use Professional Language
It does not matter how much money a client owes you or how long they take to respond. Try using a formal yet firm tone when you announce credit terms change to communicate your message effectively and help resolve things.
#2 Write Directly to the Account Department
It is advisable to write the letter to customer reducing credit terms and send it directly to the accounts department to get a faster response. Often, people from the purchase or inventory department are too busy to look over such matters, delaying your payments even more.
Tip: Get in touch with the accounts team of a company when you first associate with the business. Collect all such details during the first transaction to help you keep accurate records that can be helpful in the future.
#3 Mention All Relevant Details
Attach all the crucial details to your payment terms letter to customer to help them refer to the information and check the status of their payments.
You can mention the particulars and invoice payment terms in your payment terms letter to customer to remind them of the transaction. Also, highlight what the credit change says—for example, you may stop credit orders entirely and only accept in-advance payments. Or you can divide the amount of the transactions between CIA (cash in advance) and COD (cash on delivery) payments.
#4 Add the Relevant Sales Manager’s Name and Details
Your payment terms change letter to customer can work more effectively if it includes the name of the salesperson who sold them the products. Encourage customers to contact them and discuss how to work out everything.
#5 Establish a Credit Plan
The best method for changing payment terms with customers is to establish a timeline and credit plan. Offer them alternatives to help them clear their dues without jeopardising your associations.
You can email a copy of your messages, but always send the letter via post.
PostGrid’s direct mail API can help you automate the process and help you distribute the letters to your customers’ physical addresses speedily and affordably!
Payment Terms Change Letter to Customer Sample
You can send overdue payment letters to your customers before closing their credit accounts. The payment terms letter to customer should be your last resort before you refer the client’s account to a collections agency.
Below is a sample to help you announce credit terms change to customers the right way:
Maeve Industries
81 Hodgson Street
Silverwood QLD 4370
Contact: +61 3 5111 1111
Email id: contact@maeveind.com.au
Date: 25 November 2022
To,
Mr Wallace Tonkin
Tropical Inc
Wiradjuri County
7 Main Street
Coolamon NSW 2154
Subject: Payment Terms Change Letter to Customer
Hello Mr Wallace,
This is to inform you that your invoice #539 is now overdue by 20 days. We sent you multiple reminders dated 21, 17, and 7 November 2022 with no responses. On carefully considering your account, we have decided to withdraw our credit payment terms, starting now.
We can only accept CIA orders from your company and are open to revisiting the terms with you. It will allow us to continue our relationship smoothly while you get more time to fulfil your due payment.
Please connect with Mr Christian if you have any questions or concerns. He can help you resolve any issues and guide you toward drafting a new payment arrangement!
We also want to thank you for your business and look forward to working with you again soon!
Yours sincerely,
Julia Monaro
Senior Sales Manager
+61 3 5111 1112
julia@maeveind.com.au
Enclosures: Invoice no. 539
How Does PostGrid’s Direct Mail API Help Companies Print and Ship Effective Letters?
Our direct mail services offer numerous features to clients to help them send their payment terms change letter to customer without doing anything manually.
Here is how we add value to your mailing tasks
- Reduces clerical overheads: Businesses can cut unnecessary and miscellaneous expenses by streamlining their print and mail tasks with PostGrid. Our solutions automate all the manual jobs, helping your staff save time and focus elsewhere.
- Adapt the latest technological trends: PostGrid allows you to ditch traditional methods to send a payment terms letter to customer and enables you to replace them with technology. Our advanced customer retargeting, address verification, and API integrations help you send your mailers online with the click of a button.
- Trigger follow-up campaigns: Set up triggered campaigns using our automation software and mail your letters changing payment terms with customers at the right time.
- Track results: Clients can check if their letters have reached their destinations. Moreover, they can add custom QR codes to redirect customers to a payment portal and track the responses using PostGrid.
Are you interested in uncovering more of our features to help you send an efficient payment terms change letter to customer? Request a demo!
Ready to Get Started?
Start transforming and automating your offline communications with PostGrid
The post Payment Terms Change Letter to Customer appeared first on PostGrid.
source https://www.postgrid.com.au/payment-terms-change-letter-to-customer/
No comments:
Post a Comment