Sample account receivable collection letter review: Every month business owners must take time to make the phone calls and write the letters to collect money that is past due.
Collection letters come in all forms, ranging from a polite request for payment to a blunt and quite aggressive 'Pay Or Else' demand.
When writing a collection letter consider whether it would be cost productive to offer some sort of incentive, possibly in the form of a discount for payoff, or for early payment on an ongoing basis.
"Collecting accounts receivables is a vital and necessary business practice that no one enjoys."
State up front in the letter the original terms of payment that you both agreed to in good faith. Providing the simple facts of the agreement is a nice way to keep the letter from becoming to personal.
Invite the customer to contact you whether he can or cannot make payment. Open communication is a key factor to resolving the delinquency. This may mean that you should be open to re-writing the terms of payment plan in order to allow the borrower to make payments in the future.
Offer assistance if the borrower admits to feeling overwhelmed or is fearful of his ability to make future payments. At all times use a respectful and sincere tone. Gentle persuasion is always a more effective communication tactic than screaming a demand for payment.
If more than one collection letter is necessary, your tone shall become more firm and your requests will be more of a demand - yet the manner in which you choose your words and the spirit in which you deliver them should always remain respectful and professional. Never make it personal. Remember you simply have a job to do - nothing more, nothing less.
In your final demand letter, state clearly what the penalties and fees will be if the customer does not meet the final timeline for payment.
Make it clear to the customer that if payment is not made then you will have no choice as to forward the case on to your legal representative who will take necessary actions on behalf of your organization. Our sample account receivable collection letter template will assist you in preparing a highly effective document.
Five Steps For Using The Sample Account Receivable Collection Letter Template:
"Collecting money from others is a job suited best for those with a compassionate heart."
Make sure that whatever you say you are going to do, that you are absolutely prepared to follow up. Empty threats for payment will work against you in the long run as word gets out quickly about these kinds of situations.
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"If a person gets his attitude toward money straight, it will help straighten out almost every other area of his life."- Billy Graham