How to write a letter of cancellation to a vendor whose services are no longer needed

If you are a business owner who wants to cancel services with one of your vendors, you should write a letter to him explaining your intentions. You may no longer need the services he provides, or maybe you found a vendor with better prices. Whatever the reason, you should notify him to let him know that from a certain date forward, you will no longer need the services he provides.

Review the contract. Sometimes vendors require a contract, while other times they do not. Look to see if you have a contract with the vendor, and if so, when it expires. If you do have a contract, wait until 30 days prior to the contract end date before writing him this letter. If you do not have a contract, give him at least 30 days notice to be courteous.

Address the letter. Using letterhead, create a letter to the vendor. Place the vendor's name and address at the top of the letter and address it by writing "Dear" followed by the vendor's name.

State the purpose of the letter. In the first paragraph of the letter, clearly state that you will no longer need the services his company provides.

Include the end date. State the exact date in which all services should cease between you and his firm. If there is a contract, state that in the letter and use the end date as the date the contract ends.

Thank the vendor. Include a heartfelt thank-you that explains that you are grateful for the business relationship you have developed with him over the past years. Express your desire to part ways on good terms.

Indicate your reason. If you no longer need the product or services the vendor provides, explain that in the letter. If you have chosen a new vendor, explain why you are switching vendors.

Include your contact information. Let him know that if he has any questions, he should call. Include your phone number with direct extension, if applicable. Sign the letter "Sincerely" followed by your name.