Sample Letter of acknowledgement for payment of overdue balance 

From,

Jackson,

#3,Pearl city,Melbourne.

Date: 20.06.2017

To,

Smith,

#5,Golden Avenue,Melbourne.

Subject: Overdue Balance Payment Acknowledgement for Account _____________ (What is the Account Number for Which Payment Has Been Received)

Dear Smith,(Sir or Madam)

Thank you for the payment of ______________ (What is the Amount Received) which was overdue for last month. Please make sure to make the payment during the 1st week of the every month to avoid late fees and other penalties .We have now removed all the restrictions of your account and you can make continue with your transactions.

Please understand to maintain the account you have to make payment as stated. If we don’t receive a payment or if the same is repeated, we will be forced to block your account as per the contract and you will not be able to do further transaction.

We trust that this will be taken care and we can serve you better without any difficulty.

We appreciate your business. If you have any queries and require further information please call our customer care number at ____________ (What is the Customer Care Number of Your Business)

We look forward to serving you again

Thanking You

Yours truly,

Jackson,

Name and Signature.

Why Letter of Acknowledgement for Payment of Overdue Balance

1. Confirms Payment Receipt:
   • A Letter of Acknowledgement for Payment of Overdue Balance serves as a formal confirmation that the overdue payment has been received by the creditor.
2. Provides a Record for Both Parties:
   • It acts as a documented record for both the payer and the recipient, ensuring that there is no confusion about the payment status.
3. Strengthens Trust:
   • Sending a Letter of Acknowledgement for Payment of Overdue Balance helps to build and maintain trust between the creditor and the debtor.
4. Resolves Any Disputes:
   • This letter can help resolve potential disputes by clearly stating the amount received and the date of payment.
5. Closes Outstanding Account:
   • A Letter of Acknowledgement for Payment of Overdue Balance officially closes the chapter on any outstanding balance, confirming that the account is now up to date.
6. Encourages Future Timely Payments:
   • Acknowledging the payment formally encourages the debtor to make future payments on time, knowing that their payments are recognized and appreciated.

Importance of Letter of Acknowledgement for Payment of Overdue Balance

1. Legal Documentation:
   • The Letter of Acknowledgement for Payment of Overdue Balance is important as it serves as a legal document proving that the overdue balance has been settled.
2. Promotes Transparency:
   • Issuing a Letter of Acknowledgement for Payment of Overdue Balance promotes transparency in financial transactions, ensuring both parties are aware of the payment status.
3. Improves Business Relationships:
   • Sending a Letter of Acknowledgement for Payment of Overdue Balance can improve business relationships by demonstrating professionalism and appreciation for resolving the overdue balance.
4. Prevents Future Misunderstandings:
   • The Letter of Acknowledgement for Payment of Overdue Balance helps prevent future misunderstandings regarding the payment, as it clearly states that the overdue amount has been paid.
5. Supports Financial Reconciliation:
   • For accounting purposes, the Letter of Acknowledgement for Payment of Overdue Balance aids in financial reconciliation by documenting the receipt of the overdue amount.
6. Boosts Credibility:
   • Issuing a Letter of Acknowledgement for Payment of Overdue Balance boosts the credibility of the creditor, showing that they are attentive and responsive to payments.