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Explanation of Credit Terms

Dear _____________________,

Recent payments of our invoices have been received long after the due date. Invoices appear to be paid in batches rather than individually when due.

Perhaps our terms are not clear, and I would like to take this opportunity to explain them.

Your credit terms are "Net 30 days," meaning that payment is due here 30 days after the date of our invoice. If you prefer to pay our invoices several at a time, we can change our terms to "15 prox," in which case payment is due here on the 15th day of the month following the date of our invoice. However if the total amount of these groups of invoices exceeds your credit terms, more frequent payments will be necessary.

If you have any questiosn about your terms, or wish to change them to "15 prox," please call me at 888-888-8888. I will be happy to discuss this with you.

Please remember that continued delays in paying our invoices will result in our suspending shipments to you. We presume this will not be necessary, and look forward to continued business with you.





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