How to Write a Collection Letter That Gets You Paid

 In Collection

If you find it hard sending a collection letter in your business, do not be afraid, you are not alone. A lot of business owners have no idea on how to write a business letter, some have no sample for reference.  There are certain things a collection letter should have one of which is why I am writing this article and that is to get you paid. The other is to keep you near with your clients and be a part of their goodwill. For your collection letter to be effective and give you the desired result then it must be short, easy to read and straight to the point. Avoid the use of long confusing words, they generate unnecessary misunderstandings.

Your collection letter should:

  1. Include the original debt date and the invoice number it is associated with
  2. The total amount owed, the current payment due date, overdue payments and late penalties to go with that account.
  3. The original date due for the payment.
  4. A phone number where your debtor can call to make inquiries about his debt.
  5. Options for payment.

In writing your letter:

  1. Make it clear the purpose for sending the letter, which is to collect their debts and for them to make immediate payments.
  2. Cross check all information in the letter and be straight to the point about the payment being overdue and it being time for the debt to be cleared because in some cases the customers didn’t take note of due Date and it has skipped his memory.
  3. The letter should be brief and clear, if you find it appropriate, you can add a date when action would be taken to avoid prolonged collet ion activity and fees.
  4. Be very exact about what failure to make the payment would warrant and state clearly the inconvenience non-payment would create and how their creditworthiness and rate would be affected.
  5. Suggest a solution to the current debt problem and discuss directly the easiest payment option in case he is finding it hard on which option to use to make a payment.
  6. Show appreciation for his time and effort in collaborating with your business and company policy even though he has done the exact opposite.

Your collection letter reflects your business, make it professional at all cost and personally sign each letter. Be critical with your wording and tone especially if this debtor is someone you want to still do business with. Lastly, as a sign to show how serious the notice is, enclose with your collection letter an envelope for payment and try your possible best to make the collection of debt easier for your customer.

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