Not all customers pay on time. In fact a few need a nudge in the right
direction, and quite a few just wait for these letters before they pay as a matter of
course.
Chasing your customers for payment must be handled carefully and correctly, this is very
important. You do not want to seem too demanding and on the other hand, you want
your money as you have already supplied the goods or service. What good is a
customer that does not pay!
Non-payment could possibly mean that you have a bad debt, which in turn reduces profit, and will
affect your cash flow, and depending on the size of the account, your business may be
adversely affected.
Remember also that this could be a repeat customer so getting the right tempo
is crucial. Hopefully they will pay on the first letter, as non-payment was just
an oversight. You will however be equipped for all types of customers. This is a great addition for your credit control department.
The three debt collection letters in order are:
- The first letter is a gentle polite reminder that a payment is due.
- The second is a bit more insisting but polite.
- The third is quite insisting and formal. Informing them nothing more
will be supplied, and that unless the outstanding invoices is paid within 7 days court action
will follow (do not send this unless you mean it).
Note:
If the worst case happens, and they still do not pay and the matter does go to court, then the court will like to see that every effort was made for the customer to be reminded of the debt and you tried to communicate with them.
Do not delay if you want the debt paid. Send the first letter today!
Documents included:
- First debt collection letter - Template
- Second debt collection letter - Template
- Third debt collection letter - Template
You get the above files in both 
.pdf and 
.doc Word format and you can download immediately after payment.
