What is a Debit Note?
Debit notes are documents that provide a debtor with information regarding an outstanding debt. A debit note is issued by the lender or creditor and serves as either notification of a debt that will be invoiced shortly or a reminder of a debt that was previously invoiced and is currently outstanding. While an invoice is also an official notification of a debt owed, it is not considered to be a debit note. The typical debit note is in the form of a letter or some type of document format that is implemented by the company to serve as a reminder. Collection letters that are sent out when an invoice is not paid within terms often use a simple “reminder” letter format that calls attention to the fact that the amount owed has not been paid. As time goes on and the balance remains unpaid, the verbiage of the debit note may shift from a friendly reminder to a demand for payment. Some companies choose to make use of a format for the debit note that is not a letter. Instead, the debit note may t
