Companies’ dealing with money and debt issues is an essential part of their business operations, and companies may sometimes face challenges in recovering money owed to them from other parties, whether due to late payment or non-compliance with financial obligations. In such cases, it becomes The letter of financial claim is a strong form of expression of rights and endeavors to recover the amounts owed.
This article aims to review the financial claim letter for companies in dealing with financial problems and debt collection. We will shed light on the components and types of the letter and how to formulate it effectively to ensure the successful achievement of the financial claim objectives. We will also discuss the procedures followed after sending the letter and how to negotiate and communicate with the debtor party properly. Effective to achieve the best results.
Managing financial resources effectively is a crucial part of the success of any company, and a financial claim letter enhances the company’s ability to maintain its financial stability and ensure its continuity in business.
What is a financial claim letter?
The financial claim letter is known as a letter requesting payment of dues, and it is also known as a debt payment letter. It is a complaint, whether written or printed, submitted by the first party (i.e. the creditor) to the second party (i.e. the debtor). Through this complaint, the creditor guarantees that his rights will not be infringed. By the debtor, the letter also includes a warning about the necessity of paying the financial dues owed by the debtor before filing a lawsuit to recover the dues that must be paid after the ruling.
Types of financial demand letters
There are many types of financial claim letters:
- A financial letter for overdue debts.
- Financial letter against the tenant.
- Contractor financial letter.
- A sample letter of financial claim to government agencies.
- A letter of claim that is specific to a company.
Types of financial claim letters for a company
Financial claims letters for companies vary depending on the basis of the claim, and we mention the types of these claims as follows:
- A letter of claim for financial expenses due to identify companies resulting from the supply of materials to this company.
- A special letter demanding payment of debts resulting from a debt or loan granted to the company.
- A letter of financial claim arising from work carried out by one of the company’s contractors.
- A letter of financial claim related to overdue debts owed by a company as a result of a contractual obligation, whether it is a supply contract, financing contract, loan, or employment contract.
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The main data in the format of a financial claim letter
The format of the claim letter must be written in a sound legal manner that includes the data necessary to complete the letter. These data are as follows:
- Personal data regarding the creditor: name, place of residence, personal phone number.
- The debtor’s private data in detail, including the debtor’s precise address.
- The subject of the speech, and it must be written very carefully and concisely.
- Text of the letter: It must contain the reason for the debtor’s delay in paying the financial dues owed to him.
- Requests: The period within which financial dues are expected to be paid is set.
- Penalty: It is necessary to clarify the penalty that will be imposed on the debtor in the event of non-payment of the debt.
The main data is in the form of a letter of financial claim to the company from another company
The data required in the company’s letter of claim to another company for financial dues is limited to the following:
- The main data of the creditor company, which includes the company name, its register, company address, and phone number.
- Corporate wording should be taken into consideration while drafting the letter.
- The legal text in a letter of claim from companies is more important than a letter addressed to individuals.
- The penalty resulting from non-payment of financial dues must be mentioned.
- The date must be written at the end of the letter, the letter must be signed by the person with directing powers in accordance with the company’s regulations, and the company’s seal must be placed on the letter.
- It is preferable, if letters are exchanged between companies, to be written on the computer and printed clearly and legibly, and handwriting is not recommended.
Financial claim letter templates
Here are some examples of a financial claim letter:
Sample financial claim letter for a company
May the peace, blessings, and mercy of God be upon you
Mr. General Manager of ………………….
After peace and greetings…
We know, Your Eminence, that your company, known as ……………….
And its location…………………………………………………………..
It holds commercial registration number………………..tax registration number……………….
There are late financial dues amounting to …………..Saudi riyals.
It is supposed to be paid to Mr.……………………………….
On the day of…………corresponding to……/……../………….
But, unfortunately, these debts have not been paid, even though we have communicated with you more than once. We inform you that if these debts are not paid within a week of receiving this letter, we will be forced to resort to the judiciary to decide the matter. We hope for your kind treatment.
You have our sincere appreciation
the name………………….
the signature…………………
A sample letter of financial claim for the value of goods
His Eminence Sheikh… President of the Court… In Riyadh.
Date: //1443
the address:………………
phone number: …………
Claimant: Name of creditor……. ID card number ………. Place of residence or work… Represented by the attorney-at-law…………according to the power of attorney…………
Defendant: Debtor’s name………. ID card number…………Place of residence……
Type of claim: Financial claim for the value of goods.
Facts of the case.
The client is a merchant and works in trade, and in the second month of the year 1443, the defendant requested that he deal with the plaintiff and give him products whose price is estimated at ………….. Saudi riyals so that he can supply them by supplying them to some party…………... It was agreed between them that the defendant would take the goods and deliver them to the party responsible for supplying the goods, provided that he would receive their wages, which was estimated as an additional profit for him in the amount of ………… Saudi riyals, and the price of the goods agreed upon for the client would be paid to him.
In view of the permanent business relationship between the two parties, commercial transactions were based on trust and honesty and required speed. The client did not issue any debt instrument or any commercial papers, and this agreement was concluded with the knowledge and presence of so-and-so ……………… and so-and-so ……………………. ….
The defendant began delaying payment of the debt and evading payment even though he received the goods and received their price. Despite the plaintiff’s request more than once, he evaded it by not paying
Therefore, we ask Your Eminence truly and fairly for the following:
- This lawsuit should be registered and considered a simple lawsuit.
- Determine the earliest date for the session.
- Forcing the defendant to pay the financial dues.
- Forcing the defendant to pay expenses, fees, and fees.
You have our utmost respect and appreciation.
Agent Attorney…………..Signature…………………………
Sample letter demanding payment of debt
the name: …………
Company Name: …………..
Street address: ………….
Country…………..Zip Code…………
Corresponding date //
The recipient’s name: ……………
Street address: …………
Country………………. Street postal code……………………
Dear………………..Recipient’s name:
Please pay your bill of …………. SR.
Which your signed credit agreement stipulates that you agree to pay this bill in a specified number of installments, installment number…………. Your payment is late by a number of days. Please transfer a payment of ……………….. Saudi Riyals by the date and if you have any questions regarding this invoice please contact us on phone number ……………………
Failure to send the full amount by the date of ……….. may result in your account being transferred to a collections agent, so this issue should be given your urgent attention to be resolved.
Greetings from the company…….
the name…………..
Job title…….
Sample letter of claim for financial entitlements
First, the creditor’s name is written in three letters
His representative, the lawyer (full name)
The name of the debtor in three letters.
Subject: A letter of claim for financial dues estimated at an amount of……… (the value of the debt is written) Saudi riyals.
Notice text:
I make it clear to you that Notifier……. He reviewed and appointed me as a representative to claim the amount of (……..) Saudi riyals. This is based on his accrued profits from trading and trading foreign currencies and precious metals in his account that you have. It will be paid to you for the amount previously mentioned. Therefore, I ask Your Excellency to pay these financial dues within ten days of receiving this letter.
If you fail to pay on the specified date, I will be forced to seek the assistance of the competent judicial authorities. In order to file a lawsuit obligating you to pay the financial dues you owe to the creditor, in addition to demanding the payment of all legal fees.
With all respect and appreciation.
The creditor’s agent, the lawyer…
Sample letter of financial claim from a government agency
In the name of God, the most gracious, the most merciful
His Eminence the Mayor………………..
Citizen Introduction…………………….
Subject: Financial claim.
In accordance with the public interest, part of the land that I own has been expropriated for the government, to build a main road, and expropriation decision No. …… dated ……………….. has been issued, which includes the expropriation of part of my land. Your competent departments have been instructed to calculate the value of that part in order to pay me the originals.
It has been calculated by the competent departments, and the amount has been determined… Saudi riyals. To date, the amount has not been paid.
For this reason, I am submitting this request, hoping to pay the amount within a maximum of ten days from the date of this letter.
In the event of non-payment, I will take the prescribed legal and regulatory measures against you.
Released on ……./…………..
Name of the letter submitter………………..
the signature …………..
Submitting a financial claim letter to a government agency by contractors and suppliers
The Saudi regime created an electronic platform it’s called Etimad platform. This platform allowed contractors and suppliers who are from the private sector to submit letters of financial claim to the government entity that resulted from contracts arising between them and these entities, therefore, by following the following steps:
- The concerned person, contractor or supplier, logs in to the platform.
- Then choose Manage Payments from the list of options.
- The contract for the financial claim is then determined.
- Complete the rest of the data and fill out the form.
- Then submit the financial claim.
Tips to consider in a financial letter
- The legal rules must be carefully observed in the letter, and the letter must be aware of all the basics, including the legal period.
- Both parties must sign the financial claim letter for the letter to be reliable proof before the judiciary
- A warning prepared during a financial claim so that the letter serves as an official document.
- State the cause of action in detail, and state the date and amount you want to claim from your debtor.
- It is preferable to use formal language in all requests, taking into account politeness and firmness in the request.
- You must state all evidence that supports your claim.
- You should go to a specialized law firm to ensure that you obtain your rights with ease.
What is The court responsible for financial claims?
Courts of first instance are competent to consider lawsuits for financial claims, and each court has jurisdiction over a specific type of lawsuit. The Sharia procedures system in Saudi Arabia has given general courts the jurisdiction of courts of first instance, and these courts have jurisdiction over all financial lawsuits, regardless of the value of the financial entitlements.
Procedures for filing a financial claim in Saudi Arabia
The next step after the letter of claim is to file a financial claim, but there are some procedures that are necessary to file the claim, which are:
- Preparing the claim statement and taking into account the legal foundations and principles to ensure the return of rights to their owners.
- State the facts of the case in detail and add evidence and evidence to support the claim.
- Submitting the lawsuit to the court with specific jurisdiction, and paying all legal fees and fees.
- Pay attention to obtaining the case registration and the basis number so that you can follow up on the case.
- The date of the first session is set to consider the submitted claim.
- Sessions can take up to five sessions.
Conditions for filing a financial claim in Saudi Arabia
There are several conditions that must be taken into account before writing the claim form:
- The person who has the right to file a lawsuit is the plaintiff (creditor), who has a right against the defendant.
- The plaintiff’s right must be clear and firm, as the Saudi court does not depend at all on future matters.
- The legitimacy of the right being claimed. The court does not accept a claim resulting from illegal rights such as usury.
- That the plaintiff suffers harm due to the debtor’s delay in payment.
- The right must be current and payable.
- The right must not be contrary to public order and public interest.
Hiring a financial claims lawyer in Saudi Arabia (Riyadh)
If you have a dispute related to businesses or companies and want to resort to commercial litigation, do not hesitate to contact the commercial system experts at Al Othman Law Firm, because they have legal experts that extend their experience For more than 15 years in commercial systems, the experience of their staff of consultants exceeds 22 years in Saudi commercial systems, and Al Othman Company includes the best commercial lawyers in Saudi Arabia and Riyadh.
Al Othman Lawyers and Consultants are happy to serve you, so do not hesitate to contact them and consult them. Al Othman Law Office is considered one of the best offices in the Kingdom.
Call the commercial law experts at the Al Othman office on +966-535-008-888
Frequently Asked Questions
Can a financial claim be filed without proof?
Yes, it is possible to file a financial claim lawsuit without proof, as there are many transactions that take place based on the strong social bond between the two parties, so the court began filing a financial claim lawsuit without proof before the competent court in order to achieve justice in the Kingdom and take into account the rights of all parties.
When does the financial claim fall?
If the right holder does not submit a letter of claim within a specific period of five years from the time the right arises, his right to a financial claim will lapse by statute of limitations.
What is a claim?
The claim is the means that the plaintiff relies on to recover his financial right from the debtor. The right holder files the claim to the competent court to obtain his right and force the debtor to pay the debt.
Conclusion
Thus, we have reached the end of the article in which we talked about a sample financial claim letter for companies, and we mentioned everything related to the topic in detail, and we hope that we have been faithful to all the information related to the topic.
In conclusion, we note the necessity of seeking the assistance of an expert lawyer in financial claims cases to obtain sufficient support and sound advice in the steps that you will take. One of the best law firms that you can rely on with complete confidence is the Al Othman Law Firm, as it is considered one of the best law firms in Jeddah and Riyadh and has qualified advisors and experts. High experience and efficiency, so do not hesitate to contact them.
Call the commercial law experts at the Al Othman office on +966-535-008-888
