Every entrepreneur may encounter a situation where he does not have enough funds to timely repay the debt to the supplier for shipped goods. It is undesirable to spoil relations with the counterparty, so it is better to agree with him to postpone the payment of the debt to a later date than specified in the agreement. You can warn the supplier about the upcoming delay in transferring money by sending him a letter about deferred payment, a sample of which can be found at the end of this article.
What functions does a letter perform?
Letter of deferred payment sent to the supplier:
- It is an acknowledgment of the fact that there is a debt owed to him.
- Confirms that the buyer has no intention to hide or try to dispute the existence of an unpaid delivery of products.
- Confirms the amount of the amount to be transferred to the supplier.
- Confirms the fact of concluding an agreement between organizations or individual entrepreneurs.
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Sample complaint to the bank for cancellation of the fine for late payment on the loan
In this case, the consumer’s obligations to the seller (performer) to pay for goods (work, services) are considered fulfilled in the amount of the deposited funds from the moment of depositing cash accordingly to the seller. Part 4 of Article 14 of the Federal Law “On Consumer Credit (Loan)” also establishes that penalties cannot be applied to the borrower for violating the deadlines for repayment of the principal amount of the debt and (or) payment of interest if the borrower complied with the deadlines specified in the last payment schedule under the consumer loan agreement sent by the lender to the borrower in the manner provided for in the consumer loan agreement ( loan).
Letter demanding repayment of debt (samples)
Features of a letter about deferred payment
A letter on deferred payment is drawn up in order to solve problems that have arisen when one economic entity is unable to pay off its obligations to the counterparty. In the text of the letter, the subject who has unpaid deliveries of goods notifies his partner that within a certain time frame he will repay the existing obligations to him.
The legislation does not establish a standard form for this document. We can only give recommendations on the structure of the letter and the main points that must be indicated in it to give the document legal force. Each organization can independently develop its own standard letter form for use. It is advisable to draw up the document on company letterhead.
The letter can be sent either on the debtor’s own initiative or in response to a received claim from the supplier. The text must indicate whether the debtor is ready to repay the obligations and accrued interest within the time frame specified by the business partner. If for some reason this is not possible, you must indicate a request to postpone the deadline for transferring funds.
What points should a letter about deferred payment contain:
- Name of the sending organization (or individual entrepreneur).
- Sender's details (TIN, KPP, legal address, etc.).
- Name of the company (full name of the entrepreneur) to which the letter is sent.
- The essence of the guarantee provided for payment of existing debt.
- Details of the contract on the basis of which the products were delivered.
- Statement of the fact that there is a debt to pay (amounts must be indicated in words). If the counterparty demands to pay a penalty, indicate your agreement or disagreement with this.
- Expected maturity of liabilities.
The letter on deferred payment must contain the signature of the head of the legal entity, preferably the signature of the chief accountant. The stamp is placed if available.
Read also: Sale with deferred payment
Compilation rules
One of the parties notifies the other in writing about the financial difficulties that have arisen and the impossibility of fulfilling the monetary terms of the transaction, acknowledging the existence of an agreement, the fact of debt and the amount. Thus, these details must be present in the form, otherwise the other party will not take the letter requesting a deferment of payment seriously and will ignore it.
The form is developed by each company independently, taking into account these mandatory blocks of information.
A well-written letter to a counterparty requesting a deferred payment must contain specific details to identify the partner and the agreement:
- names of organizations;
- position and surname, first name, patronymic of management persons;
- sender's details (TIN, legal address) (if an official form is used, they should not be duplicated);
- contract details (number, date, subject);
- data of the agreement on the fulfillment of the terms by the second party;
- amount of debt.
These data serve as identifying features; without them, it is difficult for the counterparty to determine the sender and the essence of the request.
Structure of a letter about deferred payment
- In the upper right corner indicate information about the sender and recipient, the date of compilation, and the outgoing number.
- Introductory part. Here you should state the reason for the appeal (usually they start with the phrases “Due to the impossibility of fulfilling the obligation on time due to ...”, etc.), the purpose of the appeal (“To avoid conflict”, “To resolve the issue”, etc.).
- Main part. Here the sender makes a request for a deferred payment. You can use the phrases “We ask you”, “We make a request”. You must address your business partner in a respectful manner. If the letter contains several requests to the counterparty, they are indicated in separate paragraphs or paragraphs. If the sender expects to receive a response within a certain period of time, he should correctly indicate this in the text of the document.
- The final part must contain the signature of the head of the organization with a transcript.
Recommendations for writing a letter about deferred payment:
- The writing style is businesslike.
- The request or demand must be stated very clearly and understandably. Slang expressions are not allowed.
- Sentences should be simple and understandable, without complex participial and adverbial phrases. Vague phrases and lengthy discussions are unacceptable.
- When indicating the expected repayment periods of obligations, it is necessary to realistically assess your financial capabilities. It is better to indicate this period with a reserve.
- It is recommended to inform the supplier about future plans for cooperation. Thanks to this, he will not have the desire to go to court for debt compensation.
Ways to delay debt payment. How to arrange a deferment so that the counterparty does not refuse it
How a regular deferment of payment can reduce the amount of debt When a single document on deferment or installment plan is needed Why is a simple exchange of letters between counterparties risky?
In times of crisis, many companies that have proven themselves to be conscientious partners cannot fulfill their payment obligations on time for the simple reason that they do not have funds. Their own debtors are in a similar situation. If the counterparties have a long-standing relationship, then, taking into account the current situation on the market, the creditor is able to understand that the inability to pay on the date specified in the contract is not due to an unwillingness to fulfill their obligations, but to the so-called “cash gaps” of the debtor (that is, irregular receipts of money for accounts). Therefore, the acute question arises of how to adjust payment terms “peacefully” without breaking long-term contractual relationships and without losing partners. One way could be to agree with the creditor to defer or installment payment. By providing information about when the actual cash flow is expected and how such “loyalty” benefits the creditor, the debtor can persuade him to wait. And for newly concluded contracts with new companies, you can immediately provide some “tricks” that will help the debtor gain time. “Interest and penalties for missing the initial payment deadline are accrued only until the date of conclusion of the agreement on deferment or installment plan”
