Debt Collection Letters

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Debt Collection Letters

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Not all customers pay on time. In fact, many need a nudge in the right direction. These letters are what they are waiting for before you get paid.

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 who does not pay?

Non-payment could possibly mean you have a bad debt. This in turn will reduce your profit, affect your cash flow and depending on the size of the account, your business may suffer.

Remember also 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 a payment is due.
  2. The second is a bit more insisting yet polite.
  3. The third is quite insisting and formal. Informing them nothing more will be supplied, and unless the outstanding invoices is paid within 7 days court action will follow (do not send this unless you mean it).

Note:

When the worst case happens, and they still do not pay and the matter does go to court, then the court will like to see every effort was made for the customer to be reminded of the debt and you tried to communicate with them.

Do not delay. The longer you leave it the longer it will take to be 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 format document.pdf and word for windows document.doc Word format.
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Use this professional template used by many other business professionals. All these documents are from professionals in this field. You can amend this debt collection letters to suit your precise commercial requirements by adjusting the wording to suit your purposes. This debt collection letters is a template created by Legal Professionals.


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