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A Notice of Cancelation for Nonpayment is a document used by a vendor of goods or a service provider to inform a customer or client that their goods or services are being canceled because payment has not been made. It is a simple document, which just contains the basic details about the cancelation, including a description of the goods or services and the amount of money that was due but not paid.
This Notice of Cancelation for Nonpayment is similar to a Notice of Funds Due for Client, but in that case, it is a very specific document that should only be used to collect money from a client when services have already been rendered, not, as in this case, where goods or services are being canceled. This document is also similar to a Monetary Demand Letter, but a Monetary Demand Letter can be used in almost any circumstance where money is due, unlike this case where it is specifically due for goods or services that are about to be canceled.
How to use this document
This document can be used in any situation where a customer or client's goods or services are getting canceled because they did not pay.
It's better to send a written notification of cancelation rather than a verbal notification, as having a written notice protects the sender and creates a record of the nonpayment.
In this notice, details about the particular goods or services being canceled will be entered, including a description and, if applicable, for goods, the date of the order. Additional information will be requested about the payment, such as how much was due and when.
When this form is complete, it should be printed and mailed or electronically sent to the customer or client.
There are no laws outlining what must be put into a Notice of Cancelation in the United States. It's best practice to include as much information as possible to give the customer all the facts on why their goods or services are being canceled.
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