Category Archives: How To Write Commercial Debt Collection Letters

How to write effective commercial debt collection letters and notices

Guide to Collection Letters

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What you need to know about writing good collection letters

LetterAt C2C Resources, we like to provide information not only to our existing 25,000+ customers but also to would-be customers, to help them improve their in-house collection processes.

For us, we see the long-term value and trust that’s built by helping businesses build strategies that work, thus minimizing the need to use a commercial collection agency like ourselves.

Our strategy is simple: trust builds long lasting, mutually beneficial business relationships. We’ll show you how to collect in-house with strategies that provide results – you’ll come to us for handling cases that need the touch of professional collectors.

One tool we provide at no cost is our Guide To Collection Letters eBook. It’s a free download, no strings attached. It’s our gift to you in the hopes that, if you need a third-party commercial collection agency, you’ll think of C2C Resources first.

Download your copy right now to get started writing collection letters that get results!

Sample Debt Collection Letter: Increasing The Urgency

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Businessman-Balance-C2C-ResourcesAt C2C Resources, we understand that for our clients, the process of collecting a debt can feel like a balancing act.

Communication with a delinquent customer can be like delicate balancing act. You need just the right amount of friendly and the right amount of squeeze. And somewhere in the middle, there may be a need for the right amount of compromise.

At C2C Resources, we advise that the best place to start to collect a debt is by making an assumption.

Yes. You read that right. Make the assumption that a past due invoice is a simple oversight. Start with a quick and friendly reminder phone call or send a friendly reminder letter and move on to your next task.

But if you’ve sent a nice reminder (or two), made a friendly call (or two) that got you nowhere, then it’s time to fire up the heat by adding a significant consequence.

The following sample debt collection letter does just that. Here, we’ve stripped out the ‘friendly’ and added a credit hold, which for most customers, is just the right amount of heat to put that invoice at the top of the heap.

Dear _____________,

We value your business.

Because we value your business, we are concerned that your past due balance of [$$] has not been paid.

Regretfully, we must place your credit privileges with us on hold until payment is received on the outstanding balance.

We do not make these decisions lightly, however, it is important that we are fair to our business and that we require our customers honor their commitment to our credit terms.

Please give me a call if there is a problem in sending your check for the past due balance today.

Thank you for your attention to this matter.

Sincerely,

[Your name]

At C2C Resources, we’re intentional about advising our clients to begin the quest for payment by assuming the best, and increasing the heat with each communication until payment is received.

Debt Collection Letters: Writing a Firm Notice That Gets Attention

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Your debt collection letter: Is it getting noticed or tossed?

Office Trash, C2C ResourcesThe process of collecting a debt can be nothing short of maddening.

You send reminders, you call, you hear excuses until finally, you find yourself writing an angry Final Demand Collection Letter.

If you’ve gone through this process even once, you know how easy it can be to lose your cool. And justifiably so!

But the fact is, unprofessional, angry verbiage or empty threats will most likely get your letter tossed in the trash.

You need your collection letters to pack the right punch. You need them to avoid the circular file and solicit payment all while keeping your customer relationship intact.

Start with carefully crafted letters that are professional, factual and fair.

Write a basic template for a letter when you’re not frustrated. Then, when you use the template, make sure the facts and figures you insert are spot-on. This approach will keep your emotions out of the verbiage.

Of course, always start with a friendly reminder collection letter. But if the friendly attempt goes ignored, you have to change your tone.

Here’s an example of an escalated letter:

Dear [Customer],

We do value your business, but are concerned that your past due balance of [$$] has not been paid.

Our credit policy requires that we place your credit privileges at [your company name] on hold until payment is received on the outstanding balance.

We do not make these decisions lightly, but it is important that we are fair to our business and that we require our customers honor their commitment to our credit terms.

Please give me a call if there is a problem in sending your check for the past due balance today.

Thank you for your attention to this matter.

Sincerely,

[Your name]

It helps tremendously to follow a strict debt collection timeline for collection calls and letters, escalating the tone as you progress. This keeps your communication fair and methodical.

Our recommendation is waiting ten days between each communication for up to ninety days. After that, it’s time to send a Final Demand Letter.

By spacing out your communication in a fair and reasonable manner, you’re more likely to retain good customers who have simply fallen behind.

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Example of a Friendly Debt Collection Letter

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Sometimes, making assumptions can get you into trouble. But there are those instances when making an assumption is a good thing to do. When it comes to debt collection notices, it’s smart for your initial contact to be built on the assumption that your customer’s late payment is simply an unintended oversight.

Crafting that first friendly collection letter built around this premise is as simple as stating the facts in a friendly tone. The following as an example:

Dear [Customer name],

Thank you for your recent business. We look forward to a continued business relationship.

I just wanted to send you a quick reminder regarding invoice number [000000] for [$0,000.00] which is now past due. If payment has not already been sent, please send your payment today in order to keep your account current.

Should you have any questions or problems regarding this invoice, please give me a call.

Thank you for your attention to this matter.

Sincerely,

[your name]

Past due invoices are serious and you certainly don’t want that fact to get lost in any fluff. Therefore, it’s in your best interest to keep the letter short, the tone friendly and the expectations clear.

Assume the best when sending your first notice. For most customers, a friendly reminder is enough to prompt the desired action.

The Basics of Debt Collection Letters

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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.