Guide for writing a collections letter

Step-by-Step Guide to Write a Collection Letter

* Jean Taylor posted numerous articles on a distribution site for members of the media to use and I chose this one. It required extensive edits however. Thanks Jean for making this available. Jean invites our readers to check out her FREE guide at: https://101businessletter.com

Today she shares how to get a client to pay an overdue invoice in this detailed guide below:

The types of overdue invoice letters are:

• Notification

• Reminder

• Inquiry

• Urgency

• Final Notice

• Insufficient Funds

• Thanks For Payment

• Missing Payment/Apology

The objective of the collection letter is to get the client to pay an overdue invoice.

Be careful to concentrate on observable behaviours and to avoid assumptions. End each letter with a positive mindset that this scenario will be solved satisfactorily.

For instance: 

Saying "We have not received payment," is a observable behaviour.

"Haven't sent payment" is a negative assumption. Remain positive.

A reminder letter is to inform the reader that the invoice is overdue, and the payment still has not been obtained. 

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

The invoice "is overdue" creates urgency. 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 any subsequent letters with telephone calls and maintain all log of calls.

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

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 letter must indicate the deadline for paying the invoice. 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 prompt the receiver to send the whole payment or contact you to manage a payment schedule.

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?

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