A collection letter is a letter written by business owners to their customers who owe them money, if you do not know how to write one, you should not worry because using a simple guide will help you come up with the perfect letter that will not scare away your customers but rather retain them.
Here are some sample collection letters to help you
What to include in a collection letter
- The amount as well as the due date for payment
- Mention the consequences of failing to pay the debt
- The reason for writing the letter
- In the letter, give extra time for the debtor to arrange money for the payment
- Suggest a fair solution
- Thank your recipient
Things to keep in mind on writing a collection letter
- Your writing should be very professional.
- The letter should be formal.
- Avoid using harsh words.
- Remember to go through the letter and ensure that there are spellings or grammar errors.
- Your letter should not harass the customer.
- You should first try to call the customer before you can write the letter.
Collection Letter Format
Dear Mr. /Mrs. /Ms. (Last Name of the person),
Start by politely reminding the debtor that his or her account is past due, mention the amount of money they owe you and the number of days that have passed since the due date. Let him know if you have emailed him his account statement and also provide a summary of the same in this letter just in case, he fails to receive the email. Your summary should include the invoice number, the invoice date, amount that he or she owes you, the due date and the days past due.
Request him to let you know the status of his payment, provide an address which he should contact you through or send the payment, provide the exact date that you want the payment to be done.
Lastly, you will need to provide your telephone number so that he can contact you in case there are some errors or he wants to use a different payment plan, close your letter by appreciating his prompt response.
Sample Collection Letter
3rd January 2022.
145, Hudson lane
Dear Mrs. Stevens,
You are kindly reminded that your account is already past due, our records show that you have a balance of $456.40 which is now 10 days past the due date; we have therefore emailed you a comprehensive copy of your account statement. Below is just a summary of your account in case you fail to receive our email;
Invoice number: 15421
Invoice Date: 08/25/21
Due Date: 12/25/21
Days past due: 10
We therefore kindly request that you to let us be acquainted with the status of this payment, kindly talk to us, and if you have not sent your payment, send your payment of $456.40 to the address below, this should be done by 10th of February 2022.
ATTN: Accounting Dept.
111 Main Street
In case you would like to opt for another payment plan or you notice an error somewhere, kindly contact me through this number 444-333-6789X879. Thank you for your fast response to my request; hope to continue having a great business relationship with you.