Invoice Collection Letter Tips, Samples, and Templates

Also known as a demand letter, dunning letter, or past due letter, a collection letter is an integral part of your invoice collection process. The collection letter usually comes into play after the customer is already past due and after you have made a few attempts to contact the customer via phone. Sending these letters makes a huge difference in being able to collect on the invoice as soon as possible, so making them effective is crucial. When it comes to writing an invoice collection letter, its success or failure hinges on both letter messaging and delivery timing.
Continue reading

How to Write a Notice of Legal Action

 Collection LetterAt this point you’ve worked very hard to collect the invoice from your customer directly; you have made numerous phone calls, sent emails, left messages,  and sent three previous collection letters. At this point it’s time to let someone else take over, such as a collection agency or the courts. You’ve already warned your customer that this could happen in the third collection letter and while it is not mandatory that you send a notice to let the customer know you have followed through on that warning, it can smooth the transition for all parties involved and may even inspire them to contact you.
Continue reading

How to Write the Third Collection Letter

collection letterIf you have gotten to the point where you are now sending your third collection letter, there is definitely something wrong and the likelihood of collecting the invoice on your own is getting slimmer every day. While you have done your best to work with the customer, it’s time to send them their final collection letter and let them know you’re serious. You must let the customer know that, without payment, you will have to involve a lawyer or a collections agency. Just like every other invoice collection letter you have sent, there is a right way and a wrong way to write this one.
Continue reading

How to Write the Second Collection Letter

invoice collection letterIn the first part of this series we talked about the first collection letter, the purpose of which was a friendly reminder letting the customer know they are late on their invoice. If, after sending this first collection letter, you still do not receive payment or have yet to even hear from your customer, it’s time to send another letter. While the first letter was more a friendly reminder to your customer, this letter will increase your tone slightly, to let them know you mean business and it’s time to pay. The key here is to be assertive but remain helpful and professional, not overally aggressive, which is a tough balancing act.
Continue reading

How to Write the First Collection Letter

collection letterWhen it comes to managing accounts receivable, communication with your customers is of critical importance and a collection letter is a major part of this communication strategy. The first collection letter should be sent to your customer as soon as the invoice in question has gone past due. As time goes on and invoices continue to go unpaid, your collection letters will change – you don’t want to send the same message to a customer who is 10 days past due as you would to someone who is 90 days past due – so it’s important to set the tone and timing of your collection letter carefully. In this blog series we’ll walk through the various stages of the collection process and provide a sample collection letter for each step.
Continue reading