- This letter is like the third letter in collection series. The only difference is here you offer to help the customer clear the payment. In a gentle tone persuade the reader to discuss and resolve the problem.
- Mention that there were letters written already for which there is no response.
- Mention that failing to pay in time would take the credit standing to a state of jeopardy.
- Ask the customer to reply immediately.
- Tell the customer that you are ready to discuss any difficulty the customer is facing to make the payment.
[State, ZIP Code]
[State, ZIP Code]
[Subject: Normally bold, summarizes the intention of the letter] -Optional-
Dear [Recipients Name],
This notice, regarding the accrued balance on your account, is the fourth one that you will receive. The fact that a past due account that remains unpaid for a long time can tarnish the credibility of the owner might not be strange to you. Your credit record will remain unblemished if you make the payment of $105 for the month of January without any further delays. Any other payment arrangements can be made if you can contact us and let us know that you have a problem making the payment.
[Senders Title] -Optional-
[Enclosures: number] - Optional -
cc: [Name of copy recipient] - Optional -
Collection letter to provide alternate payment arrangement.
Further things to consider when writing collection letters to debtors
Collection letters are written notifications or official messages sent by a creditor, business owner, or company to customers to inform them of a past due balance. Collection letters usually notify the customers of money owed including instructions of how to make a late payment. They may also include warnings for potential penalties due to late payments or non-payments and notifications for possible legal actions in the event the recipient fails to settle his/her account. Collection letters have been used in instances such as reminding students of overdue tuition fee, requesting customers to pay their credit card bills, demanding payment for a sent parcel, and much more.
Collection letters are usually written in a series. The first letter is just a simple reminder and the tone changes to a more direct and demanding one with successive letters. Constantly remind the customer that your payment is due or past due and request him/her to pay you immediately. Use a polite tone to avoid hurting your relationship with the customer. Include the amount of debt the customer must pay and indicate the next deadline. Mention the consequences of late payment and close the letter on a positive note.
Letters to Debtors
Letters to debtors are letters you write to people or institutions that owe you money. Mostly, these are collection letters to inform the recipients of the defaulted payments or demand letters to warn them about eventual legal actions. These letters are usually sent after unsuccessfully trying to get your payment, and it is time to take a more serious action. If you are running a business and you have clients who haven't paid for merchandise or services, your business could suffer financial uncertainty and difficulties. But then, you want to maintain goodwill and not damage the business' s reputation in the community.
When writing letters to debtors, especially those asking for payment, you need to be professional. Start with a friendly letter and if the failure to pay continues, get progressively more serious. Provide important details about the debt - state how much is owed and when the payment should be made. For subsequent letters, use a firm tone but be considerate and professional so as not to ruin the possibility of future deals with the recipient. Recount any conversations that have happened since the first letter. End with a note of anticipation to having the situation resolved.