Sample Letter to Change Payment Terms with Creditor (Extend Credit Period)

You have to write a very cordial letter or email to the creditor, explaining clearly how you desire to make the payments in the future.

If you are unable to pay the creditor on time or if you foresee a delay in the payment to your creditor, then you can discuss this matter with your creditor and request for an extension of the payment or change in payment schedule.

Following are the examples of how to write letters to your creditors seeking change in payment period terms. You can modify them as per your requirement.

TEMPLATE #1

Your Name

Address

Phone No.

Date: ........

Name of the Creditor

Address

Phone Number

RE: Credit account number .............

Dear (Name),

I appreciate your assistance in addressing my current difficulty with meeting my usual payment obligations, and for your cooperation in establishing the agreed-upon payment schedule for my account.

As per our conversation, I will make reduced payments of (Amount) by the ___th of every month for a period of ___ months. After this timeframe, I will resume making the usual payments as agreed earlier.

Thank you for your support and cooperation with this matter. If you need further clarification, please don't hesitate to contact me immediately.

Sincerely,

(Signature)

Your Name

TEMPLATE #2

Your Name

Address

Phone No.

Date: ........

Name of the Creditor

Address

Phone Number

RE: Credit account number .............

Dear (Name),

Thank you for taking the time to discuss my temporary issue with making regular payments and for agreeing to the proposed payment plan for my account during our conversation today.

As agreed, I will withhold payment until (Date). Subsequently, I will recommence making payments of the agreed-upon amount on or before ___th day of each month until my payments are current or my account is settled by (Date).

Your help and understanding in this situation are greatly appreciated. Should you have any questions pertaining to this matter, please feel free to reach me at the provided phone number.

Sincerely,

(Signature)

Your Name

TEMPLATE #3

Dear James,

I appreciate you making time for our phone call earlier today. As informed to you over the call and as outlined in our letter to you vide ref no. ______ dated _______, we are scheduled to receive our financing from our bankers or investors by [Date].

In light of this, we kindly request an extension for the payment due date of our account until [Date]. This will allow us to ensure that all the necessary paperwork is completed accurately. Our account number is ___________.

We deeply appreciate the support extended to us from time to time. It has been a true pleasure conducting business with your company. We eagerly anticipate many more years of mutually beneficial associations.

Sincerely,

Maximillion