Step-by-step guide to writing a collection letter

The types of collection letters are:

• Notification

• Reminder

• Query

• Urgency

• Final notice

• Insufficient funds

• Thanks for the payment

• Missing payment / apology

For example: The notification is the letter to notify the recipient that the invoice is past due.

This reminder letter is to inform the reader that the invoice is past due and that payment has not yet been obtained. Be careful to focus on

observable behaviors and avoid assumptions. Saying: “We have

payment not received “, is an observable behavior.

“I have not sent the payment” is an assumption. It remains positive.

The inquiry letter asks why the bill is not paid. Assumes

The bill is due. It’s great to follow up on this correspondence with a personal phone call asking about late payment. An alternative strategy can be arranged to accommodate the recipient’s current budget constraints. If a different arrangement is made, send a copy of this new payment plan to the recipient. Continue to follow up on letters with phone calls to maintain communication. Keep all call log.

How to write a good collection letter?

Explanation of each part of the letter. The first letter describes each part of this correspondence after the letters identify only the changes in the standard format. The purpose of the collection letter is to get the customer to pay an overdue invoice.

Step 1: Check the spelling of the recipient’s name. Use a

gender-specific courtesy name only as long as you are sure of the recipient’s gender.

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

Step 3: The next part of the letter should state the due date.

for the payment of the invoice and the penalties that may

Outcome. You can also indicate your company’s fines or other payment policies.

Step 4: The third part of the letter should indicate the consequences of the overdue invoice. Originally these may be

Penalties, however, as the bill becomes more delinquent, it may involve a collection agency.

Step 5: The last part of the letter should promote

recipient to send the full payment or contact you to manage a payment schedule.

End the letter with a positive mindset that this scenario will be resolved successfully.

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

• Did you confirm the title of the recipient?

• Was the tone of this letter firm but understanding?

• Did you state the total amount owed?

• Did you indicate when the invoice is due?

• Did you offer an alternative payment program?

• Did you indicate the new deadline?

• Did you track phone contacts?

• Did you indicate the effects of not paying the bill?

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