Overview of a Grant of Request for Extension of Time

What is a Grant of Request for Extension of Time?

Grant of Request for Extension of Time letters are made between one company and another to extend a payment relating to a given supply of goods or services. 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. Moreover, by writing a letter of approval in response to a request for extension of time, an acknowledgment is made by the company of the counterparty’s proactive approach to the situation. 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 beginni

Key points included

  • Ensure that the original request for an extension of time entails a specific request for when the payment will be made and reasons for the delay of payment. 
  • Clearly state the nature of the financial hardship and ensure there is no false information.
  • Clearly include the reference number of the delayed invoice for efficient correspondence. 
  • Refer to the party’s position of loyalty towards your company’s services so as to reinforce a relationship of trust between both parties and thus the reason for assistance being granted.

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