Collection letter serves a reminder of the outstanding amount or due payment in a polite manner.
It could be written a hired collection agency, landlord or any creditor. This is usually addressed to a business partner/ associate/ customer/ client or other debtor in case of nonpayment. This is the best way to remind them and settle the outstanding amount in a pleasant manner. It is also the first step before filing a legal suit. If this letter fails to settle the payment you can use it as legal documentary support in the court.
This serves as a formal notice so it has to written with great consideration here we have presented some useful guidelines to satisfy your confusion regarding how to write a collection letter. Follow these tips and draft your letter according to your purpose.
- Follow the standard format of business letter writing. Compose it on the official letterhead. A generic form letter or written poorly on a plain piece of paper can never serve your purpose effectively.
- Always write it in pleasant manner. Use simple words to make the reader understand the exact purpose easily.
- Never use legal jargons with an intention to make it impressive as most of the people are not known to the legal terminology.
- Keep your tone humble, sincere and determined. Do not use hash words or direct warnings.
- Before start writing, make an outline of all the relevant information. Gather all the points in an organized manner.
- Mention all the important date, figures and the other statistical details in chronological order or as per the requirement of the settlement.
- Write a precise message within three short paragraphs. Mention all the required details in a formal and straightforward manner.
- Try to make it easy to understand. Do not write it with intention to insult the debtor as it will fade the chance of prompt payment settlement.
- Create a factual, concise and meaningful subject line to deliver the gist in single sentence.
- State the purpose of your writing clearly in the opening lines. Mention the important dates and outstanding amount in the initial paragraph.
- Give a reference of the business agreement, rent agreement or any other contract regarding the payment terms and condition in the middle paragraph.
- Encourage the reader to contact you for the further discussion as it makes the settlement fast and friendly.
- Write all the essential points in courteous manner as it will serve you as official backup document in case of legal proceedings.
- Proofread it to correct the spelling and grammar errors.
- Make two copies of it. One to send the debtor and other for your further reference.
