A letter of payment can refer to several different letters used during the payment process between two parties. Usually it accompanies a payment for a product or service previously acquired. For example, if your business bought 30 new computers, and the payment was due on November 30th, you would send a check or other form of payment, along with a formal letter of payment, to the business or individual you bought them from. The letter of payment specifies whom the payment is from and what the payment is for.
The company may also later issue a letter of payment receipt, which acts as an acknowledgment that they received your money.
Letters of payment are also common in the finance world. For example a letter of payment terms is sent to a borrower clarifying the terms of loan repayments. Various parties may write a letter of payment guarantee assuring the recipient that a payment will be made. And other letters may be sent reminding a borrower that a payment is due.
Make sure you state explicitly what the payment is for, or what payment/transaction the letter is in regard to.
Include all relevant information, such as the parties involved, dates of payments and amounts due or guaranteed.
Be straightforward and polite. There is no need to ramble, but a thank you goes a long way.
Dear Garrison Computers,
Enclosed you will find a check for the sum of $15,000. This payment is for the 30 computer workstations Home Computing Inc. received on November 1st, 2009, transaction #456533. This amount should be enough to pay all outstanding accounts Home Computing Inc. has with Garrison Computers.
We thank you for your great service, and if we ever need any more computers, Garrison Computers is the first place we will order from.
Home Computing Inc.
Dear Mrs. Hill,
We are writing to confirm the agreed payment terms on your mortgage as we have become concerned with late payments.
We must stress that you are not in arrears and payments are currently up to date as of writing, but for the past 4 months we have been receiving your checks on the 15th, which is late.
As outlined in the initial terms that you signed on January 27, 2008, payments must reach us by the 12th of each month. We believe that you may be sending checks on the day of the 12th, which takes 3 days to arrive by post. Instead we advise that you send checks no later than the 9th, to ensure that you adhere to our agreement.
Alternatively you can contact you bank to set up a monthly transfer automatically on the 12th, which will reach us the same day. This means you will not have to physically mail checks and rely on the efficiency of the post office (please find further details enclosed).
Thank you for your understanding.
To Ohio Auto Parts,
On behalf of our client, Mr. R. Hope, of Downtown Mechanics, we are notifying you that Chase Bank will irrevocably guarantee payment of any checks written by Mr. Hope, for his purchase of automobile parts from your business.
We guarantee single payments of up to $12,000, with no STOP PAYMENTS.
Should you require any further assurance on this matter, please call our business account hotline on (216) 372-1390 and quote the account number and name of our client (Mr. R. Hope).
Chase Bank Business Checking
Dear Mrs. Chong,
This letter is to notify you that you are now 60 days behind payment on your store credit account with Allied Shopping. This is due immediately, including interest charges.
You were sent a previous reminder on February 06, 2013, that payment was due and that you were a week behind. Then on February 13, 2013, you were notified that until payment was made, weekly interest charges of $10 would be applied to the principal.
As it stands your current outstanding balance is $7,500, with interest charges of $75, bringing the total amount due to $7,575.
Unless you make payment within 14 days, or contact us to arrange a more manageable payment plan, the debt will be passed on to the collections department and you may be visited by one of our collections officers. Legal action may also be taken against you.
Please get in touch so we can solve this issue.
Allied Shopping Accounts
Dear Wizard Window Washers,
Please find enclosed a check of $625, addressed to Mr. Jeremiah Bouchard.
This payment is the full amount owed for window cleaning services verbally agreed for the full year beginning July 03, 2011.
Please confirm in writing your receipt of this check and that our agreement has been met.
Furthermore I hereby confirm that I no longer require the window cleaning service, and any attempt to enter my property will be treated as trespassing.
Dear Mr. Alonso,
We are writing to confirm that we have received your annual account payment of $50 via check, on April 01, 2012, and your membership has been renewed for another 12 months. Your next payment will be due by April 05, 2013.
Thank you for choosing to stay with us, we look forward to sending you even more exclusive video game coverage in the months ahead.