Late Fee Notice Template for Saudi Arabia

The Late Fee Notice is a crucial document used in Saudi Arabian business operations when payments become overdue and late fees need to be formally communicated to the debtor. It serves as an official notification that combines both the original outstanding amount and the applicable late fees, calculated in accordance with Sharia law principles and Saudi commercial regulations. This document is typically issued after payment deadlines have passed and previous payment reminders have been unsuccessful. The notice must carefully balance the creditor's right to compensation for delayed payment with Islamic financial principles that govern interest and penalties in Saudi Arabia. It includes specific references to relevant contractual clauses, applicable regulations, and precise calculations of the fees being charged, while providing clear payment instructions and deadlines.

1. Header Information: Company letterhead, date, reference number, and recipient's complete contact details

2. Subject Line: Clear identification as a Late Fee Notice with reference to the original invoice/contract number

3. Outstanding Payment Details: Specific details of the original amount due, original due date, and current outstanding balance

4. Late Fee Calculation: Detailed breakdown of late fees being charged, calculation method, and compliance statement with Sharia principles

5. Legal Basis: Reference to relevant contract clauses and Saudi regulations that permit the late fee charges

6. Payment Instructions: Clear instructions for making the payment, including acceptable payment methods and bank details

7. Payment Deadline: Specific deadline for payment of both original amount and late fees

8. Closing Statement: Professional closing with contact information for payment-related queries