Соболева

1. MORDOVIAN N.P. OGAREV STATE UNIVERSITY

ENGLISH LANGUAGE DEPARTMENT
FOR SPECIAL PURPOSES
PRESENTATION
Letter Regarding Payment Terms Agreement
Written by: Soboleva Daria
Checked by: Aleksander V.P.
SARANSK 2026

2. Purpose and Objectives of the Letter

MAIN PURPOSE:
TO R E AC H A M U T UA L LY B E N E F I C I A L AG R E E ME N T O N T H E T I M I N G , FO R M ,
A N D A M O U N T O F PAY M E N T FO R T H E S U P P LY O F G O O D S / S E RV I C E S .
SPECIFIC BUSINESS TASKS:
1 . P O ST P O N E PAY M E N T DAT E – E . G . , F RO M 3 0 TO 6 0 DAY S W I T H O U T P E N A LT I E S .
2 . C H A N G E PAY M E N T FO R M – F RO M 10 0 % P R E PAY M E N T TO 3 0 % P R E PAY M E N T +
7 0 % P O ST- PAY M E N T.
3 . L I N K PAY M E N T TO W O R K STAG E S – PAY M E N T A F T E R S I G N I N G A N AC C E P TA N C E
C E R T I F I C AT E .
4 . I N T RO D U C E A C U R R E N C Y C L AU S E – " PAY M E N T AT T H E C E N T R A L B A N K E X C H A N G E R AT E
O N T H E PAY M E N T DAT E + 1 % " .
5 . AG R E E O N I N STA L L M E N T P L A N – PAY M E N T S C H E D U L E OV E R 3 – 6 M O N T H S .
6 . S E T T L E OV E R D U E D E B T – D E B T R E ST R U C T U R I N G W I T H O U T C O U R T.

3. When You NEED to Write Such a Letter

Situation
Signs
Risk Without Letter
Prepayment
Clint asks for goods “on
consignment”
Non-payment, frozen cash
Exchange rate changes
Invoice in USD/EUR,
payment planned in local
currency
Currency losses
Shipment delay
You delay delivery but
demand payment
Contract terminarion
Financial difficulties
Receivables 90+ days
overdue
Legal costs
New client
No credit history
Require advance or letter of
credit
Important: The letter creates written evidence for arbitration
19.05.2026

4. Letter Structure – Step by Step

1. Header
To: General Director of Alpha LLC, Petrov P.P.
From: Commercial Director of Beta LLC, Sidorov S.S.
Ref. No. 45/P dated May 19, 2026
2. Subject line (be specific!)
"Regarding agreement on new payment terms under Supply Contract No. 123 dated February 1, 2026"
3. Salutation
"Dear Mr. Petrov,"
4. Reference/Background
"In accordance with clause 4.2 of Contract No. 123..."
5. Proposal (most important block – see next slides)
6. Justification (why it benefits the recipient)
7. Response deadline
"Please confirm by May 25, 2026"
8. Signature, seal (if any), attachments
"Attachment: Draft supplementary agreement dated May 19, 2026, 1 page"
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5. Proposal Wording Options (Table with Examples)

Type of Terms
Phrase in the Letter (Example)
Comment
Payment deferral
"We request a 45-calendar-day
Justify by seasonality
deferral from the shipment date"
Advance + post-payment
"30% prepayment, remaining
70% within 10 days after signing
delivery note"
Reduces your risk
Letter of credit
"Payment via an irrevocable
confirmed letter of credit at
Sberbank, valid for 60 days"
Secure but expensive
Promissory note
"Payment by a promissory note
of Sberbank is acceptable"
Rare but possible
Barter/counter-delivery
"We offset your metal supply
against our equipment"
Reconciliation act required
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6. How to Justify Your Position (5 Persuasive Arguments)

Argument 1: Market practice
-"In our segment, the standard deferral is 30 days. You are asking for 90. We
propose 45 as a compromise."
Argument 2: Discount for prompt payment
-"With 100% prepayment, we offer a 3% discount. With deferral – full price."
Argument 3: Force majeure or objective circumstances
-"Due to the Central Bank rate increase to 21%, our credit resources have
become more expensive. Therefore, we ask to reduce deferral from 60 to 30 days."
Argument 4: Mutual benefit
-"You will receive the goods 2 weeks earlier if you switch to 50% prepayment."
Argument 5: Threat of suspending shipments (use cautiously – only for tough
negotiations)
-"Until the new payment schedule is agreed, shipments will be suspended."
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7. Typical Mistakes (What NOT to Do)

1. Emotional language
-"You are letting us down", "How can you do this" → Replace with facts.
2. Vague wording
-"Pay sometime soon" → Specific date: by May 31, 2026.
3. No alternatives
-Only one rigid condition → Add 2–3 options.
4. Incorrect bank details
-Wrong account number, BIC → 5–7 day payment delay.
5. Ignoring business etiquette
-"Hey", first name only, emojis → Unacceptable.
6. No response deadline
-The letter may be "forgotten" for a month. Always write: "Awaiting your
response by..."
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8. Sample Letter (Situation: Request to switch from post-payment to advance payment)

To: General Director of Romashka LLC
From: Financial Director of Lyutik LLC
Subject: Change of payment terms under Contract No. 456 dated March 1, 2026 (switch to
advance payment)
Dear Mr. Alexandrov,
Due to rising raw material costs and changes in logistics chains, we are forced to revise the
payment terms under our contract.
We propose the following procedure effective June 1, 2026:
50% advance payment within 3 days after invoice issuance
Final 50% payment within 10 days after signing the delivery note
For your convenience, we will keep prices fixed until the end of the quarter, despite inflation.
Please sign the supplementary agreement in two copies and return one to us by May 25, 2026.
Sincerely,
Financial Director of Lyutik LLC
Signature, Full Name
19.05.2026

9. Handling Objections in Reply Letters

Client objection: "We cannot pay an advance – we have cash flow gaps."
YOUR RESPONSE (CAN BE INCLUDED IN A
FOLLOW-UP LETTER):
YOUR RESPONSE:
"We understand your situation. Here is an
alternative: 20% advance + 15-day deferral
on the balance. Or split into 3 equal
payments every 10 days."
"Given the current refinancing rate, we
cannot finance your working capital.
Maximum 45 days with a 0.1% penalty for
each day of delay beyond this period."
"Objection: "A 90-day deferral is our standard term for all suppliers."
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10. Legal Force of Such a Letter – Key Points

The letter is considered an official document if:
It has an outgoing number and date
Signed by an authorized person (by power of attorney or charter)
Sent by registered mail with inventory or via EDI (Kontur, SBIS, Astral)
What can be proven in court using this letter:
Fact of sending a proposal to amend the contract (Articles 450, 452 of the Civil
Code)
Compliance with pre-trial procedure (Article 452, Clause 2 of the Civil Code –
mandatory for contract amendments)
Debt acknowledgment if the counterparty writes "agree, but later"
The date when the delay began
Risk: Silence does not equal consent. Without a response, the terms are not
considered changed.
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11. Checklist Before Sending (Check 10 Items)

1. Correct details of both parties (Tax ID, Registration Code, Bank Account, BIC)
2. Reference to the contract and its specific clause
3. Specific date or event for payment ("by May 31", "within 3 days after shipment")
4. 2–3 alternative options offered
5. Response deadline stated
6. Draft supplementary agreement attached (if changing the contract)
7. No emotional or threatening phrases
8. Letter signed by the same person named in the contract as the representative
9. Copy saved in CRM or "Outgoing" folder
10. Sent via a method with confirmation (email with read receipt or registered
mail)
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12. Thank you for attention

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