Overview of a Grant of Request for Extension of Time
What is a Grant of Request for Extension of Time?
A Grant of Request for Extension of Time letter is made between a creditor and a debtor granting the debtor’s request to extend the payment time of an outstanding invoice.
Establishing a Grant of Request for Extension of Time for payments made by a company is important as it is used to clearly demonstrate that delays have occurred within the payment process and, further, it explicitly outlines the postponed date of payment.
These letters are also made between one company and another to extend a payment relating to a given supply of goods or services.
What is the purpose of writing a Grant of Request for Extension of Time letter?
A grant extension may be granted for a variety of reasons, it could be that an unexpected issue occurred that delayed the implementation of such services, or sudden unforeseen circumstances arising, etc. While limited in size and scope, the benefit of grant extensions is that neither party has to go through the entire application, negotiation, and transaction process again from the beginning.
How to Write a Grant of Request for Extension of Time letter?
These are the tips for writing a request for granting an extension of time.
Write your name and full address: You should include your name and full address on the top of the letter.
Use formal and polite language: While writing this letter you should use formal and polite language to describe your circumstances.
Provide next deadline: Normally this letter is written if you failed the deadline for making the payment. So, make sure you should include the next date of making the payment.
Describe your reason: you should properly describe your situation for not being able to make the payment in time. There might be various reasons like banking issues, unfavorable external environment, or internal environment issues.
Express gratitude in advance: You should be thankful in advance for asking for the grant of a request for an extension of time.
Apologize for the inconvenience: last but not the least, you should apologize for not being able to make the payment on time.
A Grant of Request for Extension of Time letter is written when one party fails to make the payment on deadline and asks for the deadline extension for making the payment. This letter will help both parties to understand the hardship one is facing for making the payment, and also helps in maintaining a good relationship by communicating their problems. It will also save time and money for both parties by minimizing the redundancy of starting a payment procedure again.
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