Letter rejecting client proposal for payment but offering acceptable terms

What’s a letter rejecting a client’s proposal for payment but offering acceptable terms and when should you use it?

You should use this letter if your client has made a proposal to you to settle a debt but that proposal is unacceptable to you.

This template allows you to either insist on payment being made on the initial terms (failing which you will take the necessary actions to enforce payment) or, alternatively, to offer the client one-off payment terms that are agreeable to you.

Your counter-proposal may allow for payment of the debt in instalments or perhaps even a reduced lump sum payment.

Importantly, if you do include a one-off counter-proposal, this template also makes it clear that there is no legal obligation on you to do so and that just because you have agreed to a different payment structure on this occasion, you are not contractually bound to offer similar terms into the future.

What else might you need?

Despite best practices there will always be occasions when customers fail to pay you on time.

However, if you find yourself in this situation you should be aware of your entitlement to charge interest.

You’ll find our guide to charging interest on late payments helpful.

Our guides on late payers and on  chasing late payments  are also full of great insights.

But perhaps the most important thing you need to do is ensure you have your payment terms clearly set out in writing to your client and that your client is made aware of these terms before ordering from you.

These should be contained within your terms and conditions of business and displayed on your website or alternatively on any proposals.