When a previously good customer becomes behind with their payments it will be up to your good judgement to decide when to stop fulfilling orders until payments are up to date.
The first step is a friendly approach explaining why the order is being witheld in case the person concerned is unaware of the payment problems. This can often happen in an organisation with separate departments for sales/ finance / HR etc.
How to write a letter refusing a customer’s order until late payments are received
Your letter should contain:
- The order number which is being witheld
- The reason why (late payments)
- A request for the matter to be resolved
- An emphasis that the order will be released as soon as payment is received
If this is a more serious matter you may prefer to use our formal First Collection letter
This letter is for a previously good customer who may have simply forgotten to pay. You want to go down the more formal route after trying to obtain payment with this initial friendly approach.
Letter refusing a customer’s order – sample 1
[Your Business Address]
To [Manager’s Name]
Re: Purchase order numbers 123456 and 7891011
I’m afraid that order 123456 has been put on hold due to payment problems. Last week we emailed your office regarding overdue payments for this order and also order 7891011 but we have had no reply.
Your order has been processed as we want it to be ready to ship as soon as we are authorised to release it. However this cannot happen until the problem is resolved. Is there anything you can do?
I look forward to hearing from you,