There will be times when a customer asks for an ‘extension of time’ to make a payment on an agreed loan payment schedule or on a due invoice. It is up to you as the lender to decide if you are prepared to make that concession. There willl sometimes be extenuating circumstances where you will feel that this can be agreed upon as a one-off, but there will also be times when you do not want to offer this provision under any circumstances.
These sample letters can be personalised to agree to an extension of time.
Letter Granting Permission for Extension of Time – sample 1
Date:
Dear [Borrower’s name]
Thank you for your recent communication requesting an extension of time to make your payment due on [dd/mm/yyyy].
For the reasons given in your request, as a concession on this one and only occasion, we are/I am prepared to offer you a 14 (fourteen) calendar day extension for payment of the amount due on [original date due – dd/mm/yyyy] until or before [new due date – dd/mm/yyyy] under the following terms:
This is a one off, one time only concession, and:
- Your next due payment following this extension will be due on [dd/mm/yyyy] being the original due date for that payment and further,
- ALL subsequent payments must be made on or by the original agreed dates.
Please acknowledge your acceptance of these terms and we/I will make the necessary arrangements to receive your delayed payment.
We/I reiterate that you must comply with all future payments on their agreed due dates and that the terms and conditions in your original loan agreement remain in force and have NOT been altered.
Yours Sincerely
[Name]
[Position in company]
[email]
Letter Granting Permission for Extension of Time – sample 2
Date:
Dear [Borrower’s name]
We would like to thank you for your letter dated [date] in which you explained to us your current financial circumstances. It states that you are requesting an extension of time to complete your payment for the invoice (# state number).
On this matter, we really appreciate your straightforward attitude in explaining your problems. As such we have noted your account for an extension until [state date of payment].
You know that we consider you one of our loyal customers and hope that extending your payment deadline is seen as a gesture to help ease you through your tough situation, and we are very pleased to grant you such assistance.
Yours Sincerely
[Name]
[Position in company]
[email]
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