A properly written collection letter example must be focused on two goals. The first is to get the money due. It’s also crucial, however, to keep goodwill with customers. If keeping the business of the debtor is an advantage to your business making sure you write the letters you send in a manner to maintain that relationship has to be a component of your plan.
Although even the best composed collection letter example isn’t a silver bullet Keep these two goals in mind and using the 6 “secrets” will help you keep your focus on this classic collection tool.
Collection Letter
Collection Letter Example
Tips For Writing Effective Collection Letter Example
Below are some essential guidelines for writing an effective collection letter example template:
1. Get ready before you write.
Make sure you verify all facts prior to beginning. Examine the account. Make sure you know the details of the amount of money spent, what was owed, payment terms when it was due, and what collection attempts have been attempted and what was the response of (or was) the debtor react.
2. Be precise, concise and straight to the point.
Keep the collection letter example on one page. Use short sentences and shorter paragraphs. The language should be clear concise, simple and simple to comprehend. Avoid formal business language which can be like a distant and condescending voice, creating an unnecessarily antagonistic style to your letter.
3. Respect the debtor.
Be aware that even though your primary aim is to make a payments, you may be looking to retain the client’s trust. It’s all about respect. The golden rule is to talk to the debtor the way you would wish to be treated as if you were the receiver from the note.
Avoid using adjectives generally, and especially ones that can be read as insulting or derogatory.
When you can, personally take the time to sign the collection letter example. This shows respect for the client, and also the importance you attach to the payment.
Be aware of your customer’s privacy. Label your envelope “confidential” or “personal” (especially in the case of an individual customer).
4. Pay as easily as is possible.
Give details that will make it possible for your customer to reply to your email quickly and quickly. Include payment information as well as contact information , such as account numbers, reference numbers as well as phone number, fax number, along with the contact information of the contact person. Also, make sure you inform the debtor of the date by which payment is due and the exact amount that needs to be paid.
5. Expect to receive payment.
Be assertive but fair when making sure you convey the importance of the payment. Be careful not to suggest an action you’re not prepared for. Consider any threat for example, an action in court, before putting it in a collection letter example.
Inform the debtor about the advantages of a prompt payment like maintaining a high credit score and avoiding having their account placed in a “credit hold”, etc.
Avoid using expressions that suggest that the customer may be unhappy with the service or product they received. Be unapologetic. Remember that you have the right to be paid.
6. Proofread Your Collection Letter Example
After you’ve completed the collection letter example, read it aloud. This will let you know any issues and also assist you in identifying any mistakes in grammar or spelling. Also, make sure to you should run a spellcheck also.
If you can get someone other than you go through the letter before you forward it to. This can serve as an additional verification of the clarity the tone, focus, and even the content.
Type of Collection Letter Example
The most commonly used forms of collection letter example include Reminders and Final Demands.
Reminder Letters
The majority of reminder letters are sent to people who are been late. The tone and tone of the letter must be polite and suggest that the client has forgot to pay the bill.
Provide a proof of the amount that is past due, or a copy of the original invoice. In our experience, most invoices are paid late due to the fact that the client never received or filed their original invoice.
Also, make the payment process as simple as is possible. Make sure to include all the necessary information about your payment and, if it is possible add an envelope to return the payment to make it easier for the customer.
Use Reminder Letters to Gradually Increase the Pressure to Pay
The squeaky wheel gets the grease” is the rule in the world of collections. The more frequently you interact with your client the more likely he’ll put your invoice on highest of his pile of bills.
Create a sequence of collection letters to keep your business at the top of your list with your clients. For example, you could send a reminder letter to your customers prior to when the payment due date. The letter could be a proof that you’ve delivered the item. Include the amount to be due and the due date. Your client will appreciate this helpful reminder.
After a few days of when the payment had been to be made (and it was never received) You can send a second Reminder Note, but this one with the note that the payment was scheduled and was due. Send reminders regularly each week each 10 days or once a week. The tone and the content of each letter in order to gradual “turn up the pressure” to collect the money.
A letter series must consist of at least three or two letters. If the client hasn’t made payment to you in the time that you have received the “reminders”, it’s time to mail them a Final Demand.
Final Demand Letter
If you’ve concluded that the client just won’t pay, you’re now ready to send a ultimatum letter — the Final Demand. The letter should clearly define what you’ll do in the event that payment isn’t received.
Be precise and specific about the amount you want to due, the time frame for payment, and the course of action to be taken in the event that payment isn’t received in accordance with the requirements you have stated. Do not set the date to pay too late into the near future.
It is best to allow enough time so that the debtor to get the letter, make arrangements for payment, and then send the money to you. Typically, the time for final demand is no longer than 10 days.
It is crucial to comply with the ultimatum, in the event that the Final Demand letter not be able to prompt paying the past due amount.
Be aware that many U.S. collection agencies offer an absolutely free final demand service that will mail a final demand collection letter example to you free of charge. If the client fails to pay within the last demand time-frame (usually 10-days) the account will be rolled over by the agency to conventional third-party collection.
If the customer pays within the deadline and the collection agency does not charge an amount. Article Source: http://EzineArticles.com/1829179
Anything Worthwhile is Worth Doing Well
It’s true that it takes some time to create effective letters for collection. But if you’re going to write an email, so why not benefit from these tricks to improve your chances of getting the answer you’re seeking.
