PAYMENT

ADVICE OF PAYMENT – ACKNOWLEDGE OF PAYMENT – REQUEST FOR PAYMENT

GROUP 5 – 3N1V1L

1. VOCABULARY

1. At maturity: đến hạn 

2. Clear a balance: thanh toán hết khoản nợ
3. Debit one's account: ghi nợ vào tài khoản
4. Due date: ngày đến hạn
5. First/ second/ third reques thư yêu cầu thanh toán lần 1,2,3
6. Outstanding: quá hạn
7. Overdue account: khoản nợ quá hạn
8. Present: xuất trình
9. Remittance: việc chuyển tiền
10. Solicitor: luật sư
11. Take legal action against sb: kiện ai
12. To clear/ settle account: thanh toán nợ
13. To extend credit: gia hạn nợ
14. To recover a debt: thu hồi nợ
B.
 2. ADVICE OF PAYMENT
2.1 Definition
Payment advice is sent by a buyer to the seller to state that an invoice has been paid or inform
the seller of the payment’s progress.
2.2 Structure
Greeting Dear Mr
Document/cargo Thank you for being so prompt in sending the documents for our last order.
situation & informing No. 14463. We have accepted the sight bill, and the bank should send you an
advice shortly.
payment progress
[Optional] Discuss We have been dealing with you on a cash against documents basis for over a
future payment modes year and would like to change to payment by 40-day bill of exchange,
documents against acceptance. 

When we first contacted you last February you told us that you would be
prepared to reconsider terms of payment once we had established a trading
association. We think that sufficient time has elapsed for us to be allowed the
terms we have asked for. If you need references, we will be glad to supply
them.

Call to action As we are planning to send another order within the month, could you please
confirm that you agree to these new terms of payment? 

Closing Yours sincerely

2.3 Business expression
1. We are enclosing our Cheque for $... in payment of your invoice No. ... dated ... 
2. I have instructed my bank, today, to transfer USD 1,000 to your account in payment of your invoice.
Could you confirm the transfer has been made as soon as the correspondent bank advises you? 
3. We would like to inform you that we have arranged for a transfer through our bank. The transfer is
for... in payment of the invoice No.
4. You will be pleased to hear that we have accepted your bill and now have the documents. We shall
collect the consignment as soon as it arrives in Saigon and honour your draft at maturity. 
5. Our bank informs us that they now have the shipping documents and will be transferring the
proceeds of our L/C to your account. 
6. We have instructed our bank to arrange for a letter of credit for ... to be paid against your pro-forma
invoice No. proceeds will be credited to you as soon as Vietcombank receive the documents.
 3. ACKNOWLEDGE OF PAYMENT
3.1 Definition
A payment receipt letter confirms to the other party that you received the money that they have
sent, deposited, or paid to you.
3.2 Structure
Greeting Dear Mr

Confirmation Thank you for your letter of ... enclosing cheque for $... in full
settlement of our invoice dated...

CTA We enclose our official receipt. 

Closing Yours sincerely 

3.3 Business expression

1. Thank you for your cheque for $... in payment of our invoice dated... 
2. Our bank advised us today that your transfer of $... was credited to our account. Thank you for
paying so promptly. 
3. Thank you for sending your cheque for invoice No. so promptly. We feel sure that you will be
pleased with the consignment and look forward to receiving your next order. 
4. Our bank informed us today that you accepted our bill and the documents have been transferred to
you. Thank you for your custom and hope you will be in touch with us again.
4. REQUEST FOR PAYMENT
4.1 Definition
A request for payment letter may be sent as a reminder for due date or when an invoice is
overdue—that is, has not been paid within the agreed timeframe.
4.2 Purpose and tone of voice
 Use a stern yet polite formal tone in the letter. 
 The intensity of warning should go on increasing with each reminder.
 Always mention the reminders in the subject line and number them. 
 Mention the date on which the payment was expected. 
 Mention the end date of the payment in the letter. 
 To maintain a long-term relationship, give due consideration to the problems faced by the defaulter.
1st request 2nd request 3rd request
Dear Mr Dear Mr  Dear Mr 
Account No. TYG 99014 
I am writing concerning our With reference to my letter of We wrote to you on two
invoice No. H93I for 10 August, I enclose copy occasions, 21 October and 14
USD919.63, a copy of which is invoices which made up your November, concerning the
enclosed. It appears that this June statement, the balance of above account, which now has
invoice has not yet been which still remains an outstanding balance of
settled.  outstanding.  £3,541.46 and is made up of the
copy invoices enclosed. 
I see from our records that since Having dealt with you for some
we began trading you have time, we are concerned that we We have waited three months
cleared your account regularly have neither received your for either a reply to explain why
on the due dates. That is why I remittance nor any explanation the balance has not been
wondered if any problems have as to why the balance of cleared, or a remittance but
arisen which I might be able to €6,000.00 has not been cleared. have received neither. 
help you with? Please let me Please would you either reply
know if I can be of assistance. with an explanation or send us a We are reluctant to take legal
  cheque to clear the account action to recover the amount
Yours sincerely within the next seven days?  but you leave us no alternative.
Unless we receive your
Yours sincerely remittance within the next ten
days, we will instruct our
solicitors to start proceedings. 

Yours sincerely
Enc. invoice copies
 4.3 Business expression
1st request 2nd request 3rd request
(1) Mention the overdue (1) Mention the previous (1) Review the situation from
account with Invoice No. and request and the outstanding the time the account should
Enclose a copy of invoice amount  have been paid. 
- We are writing concerning the - We wrote to you on 3 March -We have written you two
outstanding October account for concerning our January letters on 22 September and 19
£3,171.63, a copy of which is statement which is still October, and have sent copies
enclosed and should have been outstanding. Enclosed you will of the outstanding invoices with
cleared last month. find a copy of the statement and them, but have not received
- With reference to your Invoice our letter.  either a reply or remittance. 
No. 8145376, for £1, 710 (see - This is the second letter I have - I have written to you twice on
attached copy) which we sent you with regard to your 8 May and 4 June concerning
expected to be cleared 3 weeks March account which has not your balance of £93,1.85 which
ago. been cleared. has been outstanding since
(2) Ask for payment or - My first letter dated 21 April, April but as yet has not received
explanation of late payment asked why the account has not a reply.
- We think you may have been paid, and you will see - I am writing to you about your
overloaded invoice No. 5A from the enclosed that...  June account which I had hoped
1910 for 351.95 (see copy) (2) State that you have not you would have cleared by now
which was due last month received payment if this was on 5 July and 12 August, I sent
- Please let us know why the promised in the reply, or that letters with copies of invoices
balance has not been paid.  no reply has been received.  and statements its, asking you
- Would you please either let us - Since 1 wrote I have not to clear the balance or at least
have your cheque, or an received either a reply or offer an explanation of why you
explanation of why the invoice remittance from you.  have not sent a remittance. 
is still outstanding? - I would like to know why you (2) Explain that you have
- Please could you let its have have neither rep ied nor sent a been patient.
your cheque to clear the cheque to clear the outstanding - When we arranged terms we
amount? balance. offered you payment against
(3) Apologize if payment has - In your reply to my letter of monthly statements, yet it has
been made. 21 April, you promised that the been three months since you
- If, however, you have already account would be cleared by the wrote promising the account
sent a remittance, then please end of May, yet I have not would be cleared. We now
disregard this letter.  received your remittance or an assume that you have no
- Please disregard this letter, if explanation. intention of clearing the
the necessary action has already (3) Insist that you receive balance.
been taken. payment or an answer within - We had expected this matter
- Please ignore this letter, if you a certain time.  to have been settled at least 2
have already made the payment. - We must now insist that you months ago, but you have
clear this account within the shown no indication of
next 7 days, or at least offer an cooperation.
explanation for not paying it.  (3) Request for payment
- As we have traded for some - We feel that you have been
time, we have not pressed for given sufficient time to clear
payment. this balance and now insist on
 - I would like your remittance payment within the next ten
by return of post, or failing that, days.
your reason for not clearing this - We must now press you to
account. clear this outstanding account.
- However, we must now insist Please send your remittance
that either you settle the immediately. 
account or offer a reasonable (4) Threaten a legal action (if
explanation for not doing so. it is necessary) 
- We were disappointed that
you did not bother to reply to
either of our letters as, asking
you try clear your account, and
you have left us no alternative
but to take legal action. 
- We are giving you a further
seven days to send your
remittance after which the
matter will be dealt with by our
solicitors.
- Unless payment is
forthcoming, we will have to
take steps to onforce our claims.
- We will take other steps if no
payment has been made within
the given time. 
- We will use  other methods to
enforce payment.