A Letter of Agreement for Payment between two parties is signed whenever there is a loan involved. All the terms & conditions of a loan are outlined in an agreement along with other important information such as the amount of payment, and the interest rates. It’s necessary to sign this document whether you are lending or borrowing money.
What is a Payment Agreement?
Payment Agreement letter is a formal legal document which is prepared to outlines the terms & conditions of a loan between two parties. This agreement covers the details of the payment terms between the concerned parties.
This letter basically includes payment amount, payment schedule, parties involved, and more. Both the parties i.e. lender and borrower sign the document to officially give their consent to the terms & conditions mentioned.
At any time that money is loaned, making such a document is an essential first step.
Is it important to make a Payment Agreement?
- It’s necessary to make a letter of payment agreement in order to legalize the deal between two parties.
- It’s always a smart move to prepare all the legal documents when money matters are involved in order to stay away from the legal hassles.
- Making this document is essential, especially when your agreement falls apart.
- Having an information document in a proper legal way is important from the sides of both lender and borrower.
- Having an organized payment agreement in one place will help you prevent legal problems and any confusion.
Sample 1 – Debt Payment Agreement Example
Dear {Name}
I’m writing this letter in response to a letter which I’ve received from your company {company name} stating that a balance of the debt is {mention amount}. Currently, I am not in a financial situation to clear the debts, I would request you to please extend the last date for payment. Please give me some extra time so that I can clear all the debts.
It would be a great help, if you accept my agreement letter and send me a confirmation letter as a proof of the acceptance of this letter. I’ve always been on time when it comes to clearing debt. This month, I am in a bad financial situation, that’s why, I am writing this letter to request for an extension.
I would contact you at the soonest to clear the remaining debts.
Thank you.
With regard,
{Your Name}
Sample 2 – Letter of Agreement for Payment Email Format
To: name@email.com
From: name@email.com
SUBJECT: Debt Payment Agreement Letter
Dear {Name},
I have received an email from your company regarding the remaining debts of $1000 which are due for payment on {mention date}. I am writing this email to request you to kindly extend the date further as my current financial situation is not allowing me to complete the payment.
I would be grateful if you accept my agreement letter and send me a confirmation letter as proof of the acceptance of this letter. I’ve already sent half amount of the due payment. I will pay the remaining half as soon as my financial situation stabilizes.
I would contact you at the soonest.
Thank you.
Yours Sincerely,
{Your Name}
Conclusion
Always sign a letter of payment agreement whenever money matters are involved. Take reference from the samples shared here to know how to create an error-free letter.
Keep checking calendarletters.com for more useful calendar and letter templates.
