Step-By-Step Guide To Write A Collection Letter

The types of collection letters are:

• Notification

• Reminder

• Inquiry

• Urgency

• Final Notice

• Insufficient Funds

• Thanks For Payment

• Missing Payment/Apology

For example:Notification is the letter is to notify the recipient that the bill is overdue.

This reminder letter is to inform the reader that the invoice is overdue, and the payment still has not been obtained. Be careful to concentrate on

observable behaviors and to avoid assumptions. Saying, "We have

not received payment," is a observable behavior.

"Haven't sent payment," is an assumption. Remain positive.

The inquiry letter asks why the bill is not being paid off. It supposes

The invoice is overdue. It is great to follow this correspondence using a a personal telephone call asking concerning the payment delay. An alternative strategy can be organized to match the receiver's present budget limitations. If a different arrangement is made, send a copy of this new payment plan to the receiver. Continue following up letters with telephone calls to keep communication. Maintain all log of calls.

How to write a good collection letter?

Explanation of each portion of the letter. The first letter describes every part of this correspondence after letters identify just changes to the standard format. The objective of the collection letter is to get the client to pay an overdue invoice.

Step 1: Check that the spelling of the receiver's name. Utilize a

gender-specific courtesy name only as long as you're certain the receiver's gender.

Step 2: The first section of the letter should explain the scenario and concern. (date bought, the total owed and due date ).

Step 3: The following part of the letter must indicate the deadline

for paying the invoice and any penalties which may

result. You may also want to indicate your company's penalties or other payment policies.

Step 4: The third part of the letter must indicate the consequences of the overdue invoice. Originally, these can be

penalties, however, since the bill grows more delinquent, it may involve a collection agency.

Step 5: The Last part of the letter must promote the

receiver to send the whole payment or contact you to manage a payment schedule.

End the letter with a positive mindset that this scenario will be solved satisfactorily.

A checklist is always helpful to use along with the collection letter.

• Did you confirm the title of the receiver?

• Was the tone of this letter firm but understanding?

• Did you say the total amount owed?

• Did you state when the invoice has been due?

• Did you propose an alternate payment program?

• Did you state the new deadline?

• Did you trace phone contacts?

• Did you indicate that the effects of not paying the invoice?