Tips for Writing Effective Collection Letter

A formal notice of reminder can easily settle your nonpayment issue in a pleasant manner without any legal hassle. Collection letter is the best way to remind the debtor effectively. This is a very old and tradition tool of collection.

This letter conveys your exact intention in an organized manner. This serves you with a dual benefit. First of all it reminds the debtor in a serious mode and second if it fails to settle your issue you can use it as legal document in court proceedings. Here we have provided some useful tips to make your letter effective and successful.

Format and Language:

• Write it on business letterhead to give an authentic touch to the letter.
• Compose it in the standard format of business letter writing.
• Do not use flowery language or complex words. Avoid using legal terminology to make it extraordinary. A simple and understandable language is the first requirement of the letter.
• Keep the tone of the letter polite, serious and free from bullying expressions.
• Make an outline of the points you want to include in it.
• Gather all the facts, figures, statistical details and the relevant dates in chronological order.

Precise Note:

• Write a short and factual note. There is no need of telling a long story.
• Write a direct message within three paragraphs. If there is something unavoidable you can increase the number of paragraphs.
• Make a very meaningful and straight to the point letter.
  

Subject Line:

• Make a brief and meaningful subject line.
• Include some facts, important date, outstanding amount, reference number or anything very important regarding the payment.

Opening Paragraph:

• State the purpose of writing straightforward in the initial line. Mention all the relevant facts in the opening paragraph to set the notion of the letter. Do not explain the entire matter in the opening paragraph.
  

Middle Paragraph:

• Write down the background of the issue with reference of the terms of payment signed by both parties in the next paragraph.
• Try to suggest some flexible payment structure or easy mode of payment as your primary goal is settlement of the outstanding amount.
• Give a hind about your next step in case of nonpayment after this letter.
• Warn him in a serious tone but never use a single sentence of informal language.

Last Paragraph:

• Last paragraph is the most complex part of this piece of writing as it holds several different notions.
• You have to remind the debtor about the time frame.
• Mention clearly that in case of nonpayment within the given timeframe, your next step will be legal action.
• Show your complete confidence in debtor.
• Conclude the last paragraph with a thank you note.
• Request him to contact you immediately for further process.
  

Proofreading:

• Study the letter with great care before sending it. Correct the grammar or spelling mistakes if there is any. An error free letter is the basic requirement of any business letter writing.

Make Copies:

• Make two copies of the letter. One to send to the debtor and other to keep for the further process.

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