PAST DUE: Definition, Rent Notice, Invoices (+ Free tips)

past due definition rent notice invoices
image source:goggle

Past due is, therefore, a collective term that is worn to describe a payment that is overdue or has passed the due date of his payment. similarly, this Past due on its own has subsequently different meanings, but points towards one word. In the same manner, also, we can look at past due rent notice, which explains the notice given to the occupier of a property by the owner or an agent. We will check also on the definition of past due which simply explain the meaning of past due. likewise, past due invoices, which is refer to a note or a bill that has not assume to be paid.

Definition Of Past Due

Definition of past due can be consequently interpreted in so many ways. Therefore the definition of past due can be as follows;

  1. Past Due is a delayed bill not paid by the assigned date.
  2. Is being unpaid when due. 
  3. Is coming or arriving after the due scheduled or expected time.
  4. Past Due is expected or required but not yet having come about.

Definition of past due also can be a payment that has not made by its exact time at the end of its exact date. For instance, when A borrower who promises to pay back a certain debt in a given time and did not fulfill his promise of payment in the due time usually faces some penalties and can be subject to late fees. Furthermore, due failure to repay on time usually has negative implications for a borrower’s prestige status and may cause loan terms to be permanently adjusted. Definition of past due can also be seen as;

  1. Is a payment that can not be made by the cutoff time on the exact date.
  2. Is any type of contractual payment agreement that can have provisions for missed payments.
  3. Past Due credit is one area where past due penalties are prominent and damaging.

Past due significance can also occur on any type of payment, that has not been paid by the agreed time on its specified scheduled date. Consequently, Past due payments are usually penalized based on the provisions of a contractual agreement.

Past Due Rent Notice

However, the past due rent Notice is a document issued by the landlord or an agent of the landlord to notify the tenant that the rent is due and request for another payment of the rent. Inside the notice letter, it outlines the rent due, the due date, and any late fees incurred by the tenant. A past-due Rent notice is often the first step in a landlord’s attempt to evict a tenant who habitually fails to pay their rent on time.

In addition, the landlord may either send this letter in person or through his/her authorized agent specifically, who is in full approval by the landlord.

Also, this past due rent document can be utilized by a landlord or their agent to remind a tenant about the late rent payment. This notice includes the following information: the name and address of the landlord/agent, name and address of the tenant, the location of the property, the contact details of the landlord/agent, the rent due, and any late charges the tenant has incurred for failing to make timely payment.

Therefore, after completing the document, it should be printed, signed by the landlord/agent, and delivered to the tenant. Thus, the landlord must keep one copy of the document for record purposes.

past due, definition, rent notice, invoices

  Past Due Invoices

By definition, a past due invoice is a bill that has not been transferred even after its due date. When payment is late as of these terms, the invoice is to be reckoned as a past due invoice. To recap, let’s quickly go through the main points we have gone through:

  1. A past due invoices is, therefore, a label placed on unpaid invoices that have passed their due date.
  2. The steps you should take to handle a past due invoice involve:
    • Double-checking the invoice details for any disagreeing
    • Sending the first past due to invoice reminder as an email, around 2 to 3 days after the due date. Keep the language friendly and attach a copy of the original invoice.
    • Then, if in the next 24 hours you don’t receive a response, give the client a call to find out why payment is late.
    • After two weeks of no response, issue a second reminder email, thus with a more urgent and straightforward language.
    • Consider mediation as a settlement approach.
    • Take legal action, either through arbitration, the small claims court, or the superior court. Consult your lawyer for any of these three resolution methods.
  3. As precautionary measures to prevent late payments you can:
    • Send a payment reminder in advance
    • Establish late payment fees
    • Allow different payment methods
  4. Use accounting software to automate invoicing, and never miss a payment.
past due, definition, rent notice, invoices

There are many steps available for collecting overdue invoices, as noted below.

#1. Modify Past Due Payment Terms

Require the payment of all or a portion of the amount outstanding before delivery is made, reduce the payment terms to fewer days, and/or state that you will charge late fees. Some combination of these items should accelerate the collection of bills.

#2. Apply a Credit Study

Should you have granted credit to a customer to begin with? Any medium-to-large request for trade credit should call for the completion of a credit application, the examination of the customer’s financial statements, and the review of a third-party credit report.

#3. Cancel Shipping Errors

Does the company have a history of issuing incorrect or damaged products? If so, the collection’s effort will be much harder. Correcting these in-house problems will eliminate many collection issues.

#4. Discharge Invoicing Past Due Errors

Have a second person proofread complex or large invoices. Otherwise, customers are likely to hold up their due, even if the error does not involve the price stated on the invoice.

#5. Issue a Persistent Past Due Notice

This is a reminder letter (or fax or email) that states the amount due for payment, the invoice number, and the invoice date. It is conscious to be a low-key reminder.

#6. Call the Customer

If a dunning letter elicits no response, then it is time for a person-to-person call to find out why the payment does not give rise to. You can then switch to a variety of tactics, depending upon what you learn.

#7. Inform the Sales Staff

Your sales department may be able to work back channels at the customer to obtain payment.

# 8. Increase the Customer Contact

If you cannot get someone in the customer’s accounting department to authorize payment, you may have better luck if your CFO or controller contacts their counterpart.

#9. Set Up a Payment Schedule

If the customer simply cannot pay at this time, then set up a payment due for a series of future payments, preferably backed by a personal guarantee by the owner of the customer.

#10. Accept the Return of Goods

If the customer still has whatever you have sold to it, then arrange to have it returned.

#11. Issue an Attorney Letter

This is essentially a “nasty gram” given by your attorney, and on the attorney’s official letterhead, warning of further consequences if there is no payment at once.

#12. Require a Credit Hold

Do not allow the shipping department to send any more shipments to the customer, and make sure that the customer knows about this credit hold.

#13. Sue in Small Claims Court

It is quite inexpensive to sue a customer in small claims court if the unpaid amount is not large. It may be sufficient to simply fill out the small claims court complaint form and send a copy to the customer, rather than filing it with the court.

#14. Sue the Customer

This is a last-ditch effort and will be both long and expensive. It also makes little difference if you win in court if the customer has no money. Consequently, pre-screen customers to see if they have sufficient assets before authorizing a legal battle.

#15. Arrange an Involuntary Bankruptcy Petition

If a customer is not paying a number of its suppliers, you can band together with several others to file a petition to throw the customer into bankruptcy. This will initiate lengthy bankruptcy procedures, but it may allow you to get back a small amount of the original account receivable.

Past Due or Passed Due

Conclusion

When a borrower who is overdue on his payments receives his next account statement, the balance thus owed will be the current balance; plus his overdue balance, in addition to any late charges and interest fees. 

To bring the account up to good standing, the borrower must make the required minimum payments including any late fees or they may be further penalized. A lender equally may also increase the interest rate on the account as a penalty, which increases the amount owed. Lenders can often decrease or increase interest rates depending on payment history.

There can be many options for resolving all kinds of unpaid debts, which include bankruptcy, settlement, etc. Ultimately, it’s best to take bold steps to ensure your debt is met on time; most importantly to avoid unnecessary penalties and costly strategies. 

Is it passed due or past due?

In general, past due works well, whereas passed due does not. Passed due Using the term “past due” indicates that the due date for a bill payment has passed. Exactly. The bill was due at some point in the past, but it was never paid.

Is past due Meaning?

Past due is, therefore, a collective term that is worn to describe a payment that is overdue or has passed the due date of his payment

What is a past due balance?

The past due balance method is a method for calculating loan interest. The borrower is given a grace period prior to being charged interest on the outstanding balance of the loan under the past due to balance method.

Related Article

  1. Invoice Financing: Definition, Types, Pros & Cons
  2. 2 WEEK NOTICE LETTER: How to Write Resignation Letters (+Free Samples)
  3. ESTATE AT WILL: Definition, Types, Examples & All You Need To Know
  4. IRS INTEREST RATES: THE CALCULATION & IRS INTEREST RATES UPDATED!!!
0 Shares:
Leave a Reply

Your email address will not be published.

You May Also Like