Credit terms letter

When a customer gets a bill, it shouldn’t really be a surprise to them, but you would be surprised yourself at how many customers don’t seem to understand credit terms. Ideally, a credit terms letter reminds a customer of the terms or informs them of the terms at the point of a purchase. Written communication will be the best way to communicate credit terms with a patient, so that they don’t miss them. Most of the time, companies like to put them in fine print which most people don’t read.


Starting to Write


Tell the customer that you sincerely appreciate all of their business.


If the credit terms are changing, then tell the customer why the terms are changing, otherwise just re-state the credit terms.


State the change that’s taking place.


Remind the customer or inform them how this benefits them.

Sample Letters

Sample credit terms letter

Dear Jonathan,

We strive to serve each customer to the best of our ability and we want every customer to be happy. We would like to inform you of some credit changes which actually benefit in your favor. We’ve reduced the penalties on late fees since most of our companies are paying their bills on time.

  • All accounts that are 30 days overdue will now no longer pay 5 percent but instead pay a 1 percent fee.
  • Accounts that go over to 90 days overdue will now only pay a 5 percent fee rather than the original 15 percent.
  • If the overdue amount goes to 120 days, it will be referred to a collection agency, rather than the original 100 days.

These changes we feel are a reward for great service from the customers.

Thank you again,

Remash Lokah