How to Write a Business Collections Letter
A well-written business collections letter should help you receive payment for a delinquent debt -- and maintain the client as a customer. That's often a delicate balancing act, with some customers turned off by collection letters that seem harsh or threatening. The customer may decide not to respond at all, or may pay the debt and move on to another vendor for goods or services. Collection letters are necessary for all delinquent accounts, with the company's best customers approached very carefully.
Other People Are Reading
Instructions
-
-
1
Review the customer's payment history. A collections letter to a longtime customer with a solid payment history should feature a gentler tone than a letter to a new customer who has never made a payment and is past due.
-
2
Write the letter while keeping it short and to the point. Three or four paragraphs is enough to convey your thoughts. Use the first sentence to explain the reason for your letter, and suggest a solution in the second sentence.
-
-
3
For a longstanding customer use the first sentence to remind the customer that the account is past due and that you are concerned because the customer has never paid late. The second sentence could suggest a 30-day extension to pay with receipt of a post-dated check.
-
4
For a new customer use the first sentence to state the delinquency, with the second sentence demanding full payment within seven business days or some other date. Use variations of this approach for other customers depending on their value and the delinquency.
-
5
Close the letter by thanking the recipient and encouraging him to call with questions.
-
1
