Not all customers pay on time. In fact quite 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:

1. The first letter is a gentle polite reminder that a payment is due.
2. The second is a bit more insisting but polite.
3. 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, chase that payment, the longer you leave it the more you are at risk.

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.