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7 Tips for Writing a Bad Debt Collection Letter

Study the given tips and a sample Bad Debt Collection Letter to write and effective letter.

  • Compose it on the business letterhead. This is a formal and a final notice regarding the settlement hence it holds a great value. A generic form letter on plain piece of paper can never deliver the importance and the credibility.
  • Write it in the standard business letter writing format.
  • Create a short and very meaningful subject line. Subject line sets the entire notion of the letter so write it including the most sensitive fact in a simple language.
  • Present your intention of writing in the opening lines. Come straight to the point without giving any background information. Include all the essential information in simple and serious manner.
  • In the next paragraph explain the situation in detail. Keep the tone serious and firm. Here you can also add some sentences about the past experience or the background of the issue.
  • State that this is the final reminder. Clearly warn the reader that the next step in case of nonpayment will be the legal proceedings. Set a time frame of the payment and request the reader to settle the outstanding amount within the given time period.
  • Conclude it with a positive note with a formal closing notation.

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