Collections Letter Sample. A collections letter is used in reminding customers about their overdue payments. Writing a collections letter is challenging in the part of most managers. In writing the letter, they need to maintain balance between being polite in reminding the customers about their pending payment and being authoritative in encouraging the customer to settle their account.
Tips for Writing Collections Letter
Take a positive stance. Assume that the customers are willing to pay their overdue bills. Do not directly create malice in the part of the customers for paying late. Hence, establish a positive tone in writing a collection letter. Doing such is likely to encourage the customers to pay their long overdue bill.
Write your letter in a direct and professional manner. Remind the customer that they have an overdue payment that they need to settle. State as well in the letter the specific date that you want the bill to be settled.
End the letter by thanking the customers for responding promptly to your concerns. You can also tell the customers to disregard the bill notice if they had already settled their account.
If the initial letters sent do not work and the customers are still not responding to the notice, another collection letter can be sent. In this new letter, you can write statements that your firm will take legal actions or cut off the services provided to them if they failed to settle their account on or before the required date.
However, this is the very last option that a manager could do. This must be done only if the customers are already behind for several months in paying their bills.
Having a good business letter format or letter template to guide you can be very helpful. Download a free collections letter sample, then edit to suit your needs. It’s a great way to get you started in the right direction.