In this type of a collection letter, you can mention the action that you will take if customer fails to revert back or pay your money. In such a letter you should add logical and fair statements.
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]]>If the debtor fails to make the payment on time, then the creditors remind them by writing a collection letter to them for the same.
Use our free Collection Letter to help you get started. Simply download the .doc or pdf file and customize it. If you need additional help or more examples check out some of the sample letters below.
To,
______________
Date (Date on which letter is written)
From,
_______________
Sub:_______________________________________________
Dear Mr. ________________(Name of the person),
With reference to your loan for amount ___________ (Amount) taken from our Bank is due for its first installment. The last date to make the payment is _____________ (Date).
As per to the signed contract by both the parties, if the payment is not made in time, we are supposed to take a legal action against you.
We would appreciate if you could advice us on the mode of payment. We hope to have a long term association with you.
Yours sincerely’
(___________)
To,
Mr. Abraham George
123, Hudson lane
Atlanta
Date (Date on which letter is written)
From,
Joseph Mathew
Manager
ABC Finance Pvt. Ltd.
Sub: Collection letter for payment reminder
Dear Mr. George,
With reference to the agreement signed by you against the loan of amount $50000, I would like to inform you that your payment for the first installment is due on 15th December.
I would appreciate if you could do the needful on time. I believe that you must be aware of the consequences if you failed to make the payment on time. I wish that you will abide by the terms of the agreement and will settle the loan on time.
In case you wish the payment to be collected from your place, do give us a call and our representative will do the needful.
Hope to have a sound business relationship with you,
Yours sincerely’
Joseph Mathew
Businesses would not run if everybody had money for everything that s/he desired to have. It is only because of money being available with someone that there are people who fulfill their dreams.
A Creditor may be a person or an institution or a bank that offers the facility of giving money as loan to be paid back with interest. A Debtor on the contrary is a person or an organization that takes the money for its business or any other requirement.
Dear Ms/Mr ___________
This is with reference to the loan that you have taken from our institution vide docket number _____________ dated ____________.
We would like to inform you that your first installment is due on _________ (date) as per the loan agreement. This is a payment collection reminder for the same.
Please let us know how and by when will the payment be made to us. Alternatively we can also send our representative to collect the payment from you at a time convenient to you.
Just to reiterate that if the payments are not received before the due dates, we will have to take legal action.
We hope to have a pleasurable business relationship with you.
Best regards,
(Name of signing authority)
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]]>The post Collection Letter appeared first on Wikitechy Letters.
]]>The collection of the account receivables is the main concern of the businessman. In business operations, realizing payments from debtors is a difficult task and to accomplish it, you need to know the right way to write a collection letter.
Mainly such problem of debtors arises due to the credit sales. Selling goods on credit is the traditional business policy to enhance the sales volume. Under this policy for the payments of due, there is a definite period given to the customers. The unexpected delay in payments compels the seller to write a collection letter in order to give a reminder.
There are series of a collection letter. Now you must be wondering, what does these series of letter means? The series of the letter means that such a letter starts with a simple reminder and ends with a warning letter, indicating strict legal actions that will be taken against the debtors.
In order to allow your business to grow and succeed, it is important for you to learn the right ways to draft or compose a collection letter. It is important to focus on two objectives while writing a collection letter:
Do you know that the collection letters are different from the other business letters? Yes, it is the known fact and here are few features of the collection letter:
Two parties are involved
In this type of the letter, there are two parties involved among which one is the buyer to buy products on credit and another is the seller who sells product on credit. For payment of dues, such a letter is written by the seller to a buyer.
Written in a series
Collection letters are written in a series and it starts with the reminder letter. Later on, this continues with the inquiry letter, appeal letter, urgency letter and ends with the warning letter.
Main principle
While writing such a letter you need to understand the main principle of the letter that is to retain the customer with the company, while receiving your debts.
Refer to the previous letter
When you write such a series of the letter, then in every letter don’t forget to add the reference of the earlier letter.
While writing a collection letter you should make use of the friendly language but be straightforward when it comes to defining motive of the letter.
Legal action
If it is the last letter of your collection series, then you can threat the customer for taking any kind of legal action.
Send such a letter through registered post
It is always advisable for a seller to send such a letter through the registered post, in order to avoid unwanted delays.
However careful you may be, but sometimes you may end up making mistakes when it comes to selecting the credit customers. For unpaid bills, it becomes important for you to take some kind of action by means of writing the collection letter. How to get back the payment? How to retain the customer? These are the two main purpose of writing a collection letter which should be fulfilled by writing a letter in such a way that it is influential rather than being forceful.
Main purposes of writing the collection letter are:
These are the three main purposes of writing such a letter. The collection is the sensitive process and so here are the few practices which you must avoid:
Don’t write the collection letter in such a way that the debtor finds it easy to give an emotional excuse. Emotional drama can reduce the chances of recovery. It is important to maintain right attitude for the successful collections like:
Here are few examples of the way to begin such a letter:
Every letter in a collection series should contain information like:
The reminder collection letter is written in a friendly manner. This letter is written with the assumptions that customer has forgotten to make the payments or is facing some financial or medical difficulties. You can receive the payments after sending a couple of reminder collection letters.
Inquiry Collection Letter
Try to find out whether the customer is facing any extraordinary circumstances before writing an unforgiving letter. If you are sensitive to certain problems while collecting debts, then it can make it easy for you to maintain the good relationship with the customer. In the inquiry collection letter, you can show your willingness to help the customer. In such a letter, you can give the option of making partial payments.
Appeal Collection Letter
If your customer is not responding to any of the collection letters, then you can write the appeal collection letter. In this letter, you can show your aggressive approach. Maintain fairness and personal pride while making an aggressive approach.
Ultimatum Collection Letter
In this type of a collection letter, you can mention the action that you will take if customer fails to revert back or pay your money. In such a letter you should add logical and fair statements.
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