A payment letter is a document that accompanies a remittance for previously acquired products or services. For example, if a business ordered merchandise and had to pay a few weeks later, the company would send a payment letter along with the remittance to the vendor to detail purchase information. Letters of payment also clarify loan repayment arrangements and remind borrowers to pay on time.Continue Reading
A letter of payment should clearly state all details about an order. For example, "Enclosed please find a check for $3,000 for 10 laser printers ABC Graphics received on Sept. 13, 2015, transaction #9876543." It should also close in a friendly manner: for example, "Thank you for the great service, and we look forward to ordering again from XYZ Computers."
A letter of payment also confirms existing payment arrangements, especially if borrowers are making late payments. For example, "We are writing to confirm our payment agreement as we have become concerned with your late payments. According to your contract dated Jan. 29, 2014, payments must be received by the12th of each month. Please ensure that you comply with this agreement."
Letters of payment are also considered legal documents that can be used in court in case of disputes.Learn more about Business Communications