The Advance Payment Request Letter is a crucial business document used when a company needs to secure upfront funding before commencing work or delivering goods/services. Commonly used in Irish business practice, this document is particularly relevant for projects requiring significant initial capital, purchase of specialized materials, or mobilization of resources. The letter must comply with Irish commercial law and financial regulations, including the Sale of Goods and Supply of Services Act 1980 and relevant banking regulations. It typically includes detailed justification for the advance payment, specific amount requested, banking details, and any security arrangements such as bank guarantees. This document is essential for maintaining clear financial records and establishing formal payment arrangements between parties.
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1. Letterhead and Date: Company letterhead with full contact details and current date
2. Recipient Details: Full name, title, company name and address of the recipient
3. Subject Line: Clear indication that this is an advance payment request with reference numbers if applicable
4. Project/Contract Reference: Details of the specific project, contract, or purchase order this advance payment relates to
5. Payment Request Details: Specific amount requested, currency, and percentage of total contract value if applicable
6. Justification: Clear explanation of why the advance payment is necessary
7. Bank Details: Complete banking information for receiving the payment
8. Timeline: Expected date by which the advance payment is required
9. Closing and Signature: Professional closing, signature block with name and title of authorized signatory
1. Security/Guarantee Details: Include when offering bank guarantees or other forms of security against the advance payment
2. Payment Terms: Include when there are specific terms for how the advance payment will be adjusted against future invoices
3. Project Timeline: Include when the advance payment is linked to specific project milestones or delivery schedules
4. VAT/Tax Details: Include when there are specific tax implications or requirements related to the advance payment
5. Previous Communication Reference: Include when referring to prior discussions or agreements about the advance payment
1. Bank Guarantee Format: Template or copy of bank guarantee if being provided
2. Project Schedule: Detailed timeline of project deliverables and payment milestones
3. Contract Extract: Relevant sections from the main contract referring to advance payment terms
4. Cost Breakdown: Detailed breakdown of how the advance payment will be utilized
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