Authorization Letter to Collect Money on My Behalf

In our daily life, especially during busy times, we might not always be able to meet our commitments. In such a situation, it's very good if you have a colleague, friend or family member that you can trust to help you out.

How do you write an authorization letter to allow someone to collect?

A common example can be when you need to collect a payment, and you give approval for somebody to collect cash payment for you.

In such a case, you should provide an authorization letter (or Power of Attorney) with the information of yourself, and the person that will collect the payment on your behalf. Besides this letter, you provide Identification information, such as a passport or ID card, of yourself and the individual that is authorized to collect the cash amount for your benefit. The archive must contain applicable data, incorporating your relationship with the individual, names, and addresses of the two players and marks. The letter should likewise incorporate the date of approval and the span. 

• beneficiary/your official name and demonstrate other relevant details, like organization name, assignment,  address, contact details;
• the individual's formal passport name, and address;
  
• relationship between you and the person that collects the payment;
• the specific payment amount that will be collected;
• the specific currency of the amount;
• expected date and time of collection of the amount;
• duration: the letter must also include the date of authorization and the duration.
• letterhead: head of your approval letter in company layout if necessary;
  
• reason: Indicate why you can't gather the cash yourself.
  
• "thank you for your collaboration." 
  
• signatures.

When authorizing another individual to collect money on your behalf, you should follow the following precautions:

• Different conditions that may warrant you to approve someone else to collect the cash and not to be stopped.
• It's always good to announce the payment collection by phone, just before the collection takes place.
• In the event that you have an organization stamp, additionally remember it for the letter.
• Only authorize someone you fully trust.
• Ensure the duration of the authorization is clearly written in the letter.
• Only authorize the collection of checks that bear your name or your company’s name.
• Ensure the authorization document contains your contacts for verification.
• The authorization letter should bear your company letterhead.
• The authorization letter should have a valid company stamp.
• provide the option to contact the beneficiary at any time.

Download this Authorization Letter to Collect Money on your behalf sample letter and you will see the collection will go smoothly. Good luck!