Document background
The Advance Payment Request Letter is a crucial business document used in Danish commercial transactions when a company needs to secure funding before beginning work or delivering goods. It is particularly relevant in industries requiring significant upfront costs or long-term project commitments. The document must comply with Danish contract law, including the Danish Contracts Act (Aftaleloven) and the Danish Sale of Goods Act (Købeloven), while also considering VAT implications and banking regulations. This letter typically details the advance payment amount, usually expressed as a percentage of the total contract value, along with complete banking information, project references, and any associated guarantees. It serves as a formal record of the request and helps establish clear payment expectations between parties while ensuring compliance with Danish legal requirements for business documentation.
