No Dues Certificate Format For Vendor
[Your Company's Letterhead]
[Date: Current Date]
To whom it may concern,
Subject: No Dues Certificate for [Vendor Name]
This is to certify that [Vendor Name], having Vendor ID/Code: [Vendor ID/Code], has completed all their obligations and responsibilities as a vendor with [Your Company Name]. As of the date of this certificate, there are no outstanding dues, payments, or liabilities pending against them.
The vendor has fulfilled all contractual obligations and has met the terms and conditions as specified in the agreement between [Your Company Name] and [Vendor Name]. This includes the timely delivery of goods/services and adherence to quality standards.
Details of the vendor and the completed transactions:
Vendor Name: [Vendor Name]
Vendor ID/Code: [Vendor ID/Code]
Scope of Work: [Description of Goods/Services Provided]
Contract/Agreement Reference: [Contract/Agreement Reference Number]
Duration of Contract: [Start Date] to [End Date]
Total Invoice Amount: [Total Invoice Amount]
Payment(s) Received: [Payment Amount(s) Received] (List of Payment Dates and Amounts)
Outstanding Amount: None
This certificate is being issued upon the request of the concerned vendor and is based on our records as of the current date. We hereby acknowledge that the vendor has fulfilled all their obligations in accordance with our agreement.
For any further inquiries or clarifications, please feel free to contact our Accounts Department at [Accounts Department Contact Information].
Sincerely,
[Your Name]
[Your Title]
[Your Company Name]
[Your Contact Information]
[Company Seal/Logo - optional]
Formal No Dues Certificate Letter for Vendor
Subject: No Dues Certificate for Vendor
Dear [Vendor’s Name],
This is to formally certify that [Vendor’s Company Name], having worked with [Your Organization Name] under Vendor Code [Code/ID], has successfully completed all contractual obligations with our company.
We hereby confirm that as of [Date], there are no dues, pending payments, or financial obligations outstanding from either side. The account has been verified and settled in full.
This certificate is being issued upon the vendor’s request for their official records and future reference.
We wish you continued success in your future business endeavors.
Sincerely,
[Authorized Person’s Name]
[Designation]
[Company Stamp/Seal if applicable]
Quick No Dues Confirmation Email
Subject: Confirmation of No Dues
Dear [Vendor’s Name],
This is to confirm that there are no dues or pending payments with respect to your transactions with our company. Your account with us is fully cleared.
Please consider this email as an official confirmation for your records.
Regards,
[Your Name]
[Designation]
Provisional No Dues Certificate Letter
Subject: Provisional No Dues Certificate
Dear [Vendor’s Name],
This is to certify that [Vendor’s Company Name] has no pending dues with our organization as of [Date], subject to clearance of any future adjustments or reconciliations that may arise upon audit.
Please note that this certificate is being issued provisionally and will remain valid until [Date/Timeframe]. A final no dues certificate may be issued upon completion of year-end financial reconciliation.
We thank you for your cooperation and service.
Yours faithfully,
[Authorized Signatory]
[Company Name]
Official No Dues Certificate Letter for Vendor Exit
Subject: No Dues Certificate for Vendor Account Closure
Dear [Vendor’s Name],
This letter serves as an official No Dues Certificate for [Vendor’s Company Name], Vendor ID [Code]. As of [Date], all transactions, payments, and obligations have been reviewed and settled.
There are no pending dues or liabilities owed by your company to [Your Organization Name]. With this, we confirm the closure of your vendor account in our records.
We appreciate the professional relationship we have shared and wish you all the best in your future engagements.
Sincerely,
[Authorized Officer]
[Seal/Stamp]
Casual No Dues Confirmation Message
Subject: Account Cleared
Hi [Vendor’s First Name],
Just a quick note to let you know that your account is all clear with us—no dues or pending payments remain.
Thanks for your cooperation, and we look forward to working together again in the future!
Best,
[Your Name]
Serious No Dues Certificate Letter for Compliance
Subject: Compliance Confirmation – No Dues Certificate
Dear [Vendor’s Name],
We hereby certify that [Vendor’s Company Name] has no dues pending towards [Your Organization Name] as of [Date]. This certificate is being issued for compliance purposes as required by our internal audit and regulatory requirements.
All accounts and obligations have been reviewed and verified. Please retain this certificate as an official proof of clearance.
Sincerely,
[Authorized Compliance Officer]
[Designation]
[Organization Name]
Creative Vendor No Dues Appreciation Letter
Subject: No Dues Certificate & Thanks
Dear [Vendor’s Name],
We are pleased to certify that your account with [Our Organization] shows no pending dues as of [Date]. Your professionalism and timely collaboration made the entire process smooth and transparent.
This certificate not only confirms clearance of financial obligations but also acknowledges the value of our partnership.
Thank you once again, and we hope to work with you on many future projects.
Warm regards,
[Your Name]
[Designation]
Preliminary No Dues Confirmation Email
Subject: Preliminary No Dues Confirmation
Dear [Vendor’s Name],
This is to inform you that, as of our initial review dated [Date], no dues have been identified against your account with us.
Please note that this confirmation is preliminary and subject to the final audit cycle. A formal certificate will be shared once the audit is complete.
Thank you for your patience and cooperation.
Sincerely,
[Your Name]
[Designation]
What is a no dues certificate for vendor and why do you need it?
A no dues certificate for vendors is an official document issued by a company to confirm that the vendor has no pending payments, liabilities, or obligations with the organization.
It is necessary to formally close accounts, maintain financial transparency, and provide vendors with proof that all settlements have been cleared.
Such certificates are often required for audits, compliance, or when vendors seek future contracts with other businesses.
Who should issue a vendor no dues certificate?
- The accounts or finance department of the company.
- The procurement or vendor management team when closing vendor relationships.
- Authorized signatories such as CFOs, finance managers, or compliance officers.
- In smaller companies, the business owner may issue the certificate directly.
To whom should the no dues certificate be addressed?
- Directly to the vendor company or its authorized representative.
- If the vendor is an individual contractor, it should be addressed to them personally.
- In case of agencies, it should be issued to the registered firm name and signed representative.
- For legal or compliance purposes, copies may also be sent to auditors or regulators.
When is a vendor no dues certificate required?
- At the end of a contract or business relationship.
- When closing vendor accounts in the company’s system.
- For compliance during audits or inspections.
- Before switching to a new vendor to confirm old accounts are cleared.
- When requested by the vendor for their own record-keeping or banking purposes.
How to write and issue a vendor no dues certificate?
- Begin with the subject line clearly stating it is a No Dues Certificate.
- Identify the vendor by name, company name, and vendor code.
- State clearly that no financial obligations or payments are pending.
- Mention the date up to which the account is cleared.
- Add any conditions if the certificate is provisional.
- Close with an authorized signature, company seal, and designation.
- Send it formally by letter, email, or both depending on purpose.
Requirements and prerequisites before issuing a vendor no dues certificate
- Ensure all invoices are received and processed.
- Verify all payments made and acknowledged.
- Conduct reconciliation of accounts with the vendor.
- Obtain clearance from relevant departments like procurement and compliance.
- Prepare documentation to support the certificate in case of audit review.
Formatting guidelines for vendor no dues certificates
- Should be written in a formal and professional tone.
- Must include vendor details like name, ID, and date of clearance.
- Keep it concise—usually one page or less.
- Use company letterhead and include stamp or seal if applicable.
- For emails, keep the body simple and official.
What to do after sending a no dues certificate to a vendor
- File a copy in company records for audit purposes.
- Update vendor management system to reflect account closure.
- Inform internal teams (procurement, accounts, compliance) of clearance.
- Be prepared to reissue certified copies if requested by the vendor.
Common mistakes to avoid in vendor no dues certificates
- Forgetting to mention the vendor’s name or ID.
- Not specifying the effective date of clearance.
- Issuing the certificate without verifying payments.
- Using vague or casual wording in a formal certificate.
- Failing to keep a copy for internal records.
Pros and cons of issuing a no dues certificate for vendors
Pros:
- Ensures financial clarity and avoids disputes.
- Strengthens trust and transparency with vendors.
- Provides compliance-ready documentation for audits.
Cons:
- Requires thorough account reconciliation, which can take time.
- Once issued, errors are hard to correct.
- Vendors may misuse the certificate if issued prematurely.
Does a vendor no dues certificate require attestation or authorization?
In most cases, internal authorization is sufficient, such as a signature from the finance manager or an official company seal.
However, in certain industries—such as government contracts, banking, or regulated sectors—the certificate may need to be notarized or attested by external authorities for legal validity.
Always verify industry-specific requirements before issuing.
