Granting Extension and Establishing a Payment Plan
Comment: A debtor should be granted an extension of time when a good reason is given, or, if it is actually impossible to collect anything on the account at the present, although there is hope for the future payment. Grant the extension graciously, but definitely indicate that such procedure is an exception. Also try to suggest the establishment of a regular payment plan for the future.
We are aware that business in (location) has been slow. You must, however, realize that we have been overly patient in waiting for your payment of $( ) which is long past due.
Your request to postpone payment until the entire amount can be paid is understandable. But why not show your appreciation of the courtesies we have extended by making a part payment every two weeks?
May we suggest (number) installments of $( ). Please send the first payment of $( ) now, and then another $( ) in two weeks, and so on. Your account will soon be paid in full, without hardship. At the same time, you will retain your credit rating, something that we are sure you are concerned about.
So, won’t you please send your first check now?
We acknowledge your letter of (date) and appreciate the frank manner in which you have taken us into your confidence regarding your financial status.
Even in the most efficient business, a situation can develop beyond anyone’s control (such as your unexpected cash problem). Any custom who truthfully explains such circumstances, such as you have, can rely on our fullest cooperation.
We have noted that we will be hearing from you by (date). We earnestly hope that business will have improved by then so that a payment of $( ) will be possible.
Meanwhile, be assured that your credit standing with us is not in jeopardy. You see, we regard you as one of our valued assets — and we want to keep it that way.