Alteration of billing period (declined)

It is sometimes necessary to decline requests for alteration of billing periods:

The business may have a single policy for billing for cashflow reasons. The single policy approach can be much more efficient administratively.
Administrative costs can make alterations uneconomic. In some cases the amounts payable on accounts make the costs of alterations prohibitive.
Billing periods are terms of trade. It may not be appropriate to operate a complex billing period structure in some businesses.

Customer relations considerations

When declining a request for alteration, it's advisable to emphasize that you're working on a policy basis for business reasons. The client will have asked for the alteration for their own purposes, and you need to be seen as applying a business principle, rather than just refusing.

The example below isn't entirely negative. The letter offers an alternative, so the client isn't left stranded with no options.

Example:

Addressee

Your reference
Our reference
Contacts

Dear….

Alteration of billing period

I refer to your phone call / letter / email requesting an alteration of billing period from monthly payments to quarterly.

I regret to inform you that this request has been declined.

As a matter of business policy, this company operates its billing system on consistent terms of trade for administrative and economic reasons.

Note: We appreciate that your request was based on your own business requirements.

Under the circumstances, it may be preferable for you to consider an alternative purchase schedule, to better accommodate your needs.

We will be happy to consider any revised arrangement for purchase based on the current billing periods.

Under some circumstances, we may be able to offer you a line of credit for purchases, if that is a preferable option.

Please contact me if you'd like to discuss these other options.

Yours sincerely

Sign
Title
Date

Disclaimer

Please note:

This text is intended for advisory and guideline purposes only.

Any business letter can become a legal document, so check your content properly before issuing.

Any executable or statutorily defined document should be checked for compliance with legal requirements, and you should seek legal advice regarding its contents.