Writing effective debt collection letters requires that you keep your two main objectives in mind:
1. To get the invoice paid
2. To maintain customer good will in the process
In many cases, your delinquent customer truly wants to pay you. While this isn’t true of every customer, it’s good to assume that this is the case especially in your first communication with a first-time late-paying customer. First timers usually respond well to a short, friendly reminder.
In the event that your first notice doesn’t conjure a payment, you’ll need to take the next step toward a more forceful communication. It’s effective to space your contacts about 10 days apart, escalating each piece of correspondence from friendly to firm. Our Collections Timeline can help you schedule your notices and phone calls in a manner that’s fair to both you and your customer.
If you reach the point of sending a Formal Demand Notice, it may be time to consider involving a 3rd party. If that is the action you state in your letter, it’s imperative that you follow through. When your customer’s learn that you take the actions you say you’re going to take, they are less likely to blow you off in the future.
Remaining professional throughout the collection process can help to maintain good will with your customers, even when communication gets uncomfortable. Make your expectations clear in each letter and be prepared to work with your customer toward a resolution for the best chance of collecting the money you’re owed.