Vendor Balance Confirmation Letter Format

What is vendor balance confirmation letter?

It is a letter that a client (typically a company) provides to a supplier or vendor to report the balance that they owe to the vendor, usually upon the vendor’s request.

In the corporate world, corporations don’t pay for the services and products that they receive from the vendors on the spot, instead, they delay the payments for 30 days, 60 days, or even more. In such situations, the client owes the vendor money.

When is the letter needed?

A vendor may request for a balance letter in any of the following situations:
  • The vendor is not sure how much money they have with the client (unlikely).
  • The vendor needs to reconcile their books and want to double-check with the client.
  • The vendor wants to share their balance with a third party (perhaps a financial institution) and require an assertion from the client in the form of a letter.

How to write a vendor balance acknowledgment letter?

  • Mention the vendor’s official name as per their trade license.
  • Mention the exact amount that you owe to the vendor in numbers and words.
  • Mention the date of the balance, which could be different from the date of the letter. Clear out liabilities and responsibilities.

Sample letter template:

Bank Name

To [Vendor Name]:

We hereby confirm that you have an unpaid balance of [10,000 USD] (Ten Thousand USD Only) with [your company name] as of [5 June 2019].

This letter was provided upon your request with no liability what so ever.


Vendor Balance Confirmation Letter Format