When drafting an authorization letter for payment to a third party, ensure clarity and politeness. Clearly state your name, designation, company name, and the details of the authorized person. Specify the amount to be paid, the recipient's name, and the purpose of the payment. Attach any necessary documents and express gratitude for their assistance.

Table of Contents:

Sample Authorization Letter for Payment to Third Party

To,
__________ (Recipient Details)
__________ (Recipient Address/ City)

Subject: Authorization for payment

I, __________ (name), __________ (designation) of __________ (mention company name) write this letter to authorize __________ (name of the authorized person) for making payment to _________ (mention party’s name).

I hereby authorize _________ (Name) to make a payment of ______ (amount) to ________ (name) on __/__/_____ (date) in regard to _________ (mention purpose – payment for order made/ balance amount clearance).

Kindly consider this as a genuine letter of authority. As per the requirements, please find all required documents attached along with this letter.

Thanking you,
Regards,
________ (Signature),
________ (Name),
________ (Contact Number)

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FAQs

  • Q: Can I authorize someone else to make a payment on my behalf?
    • A: Yes, you can authorize someone you trust to make a payment on your behalf through a written authorization letter.
  • Q: Is it necessary to specify the purpose of the payment in the authorization letter?
    • A: Yes, specifying the purpose helps ensure clarity and avoids any misunderstandings regarding the transaction.
  • Q: Are there any specific documents required to be attached with the authorization letter for payment?
    • A: It depends on the recipient's requirements and the nature of the payment. Typically, attaching any relevant invoices or payment instructions can be helpful.
  • Q: How should I address the recipient of the authorization letter for payment?
    • A: You can address them as "Respected Sir/Madam" or "Dear Sir/Madam" to maintain a polite and professional tone.
  • Q: Can the authorized person make the payment electronically?
    • A: Yes, if the payment method allows electronic transactions, the authorized person can proceed accordingly.

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