Collection Letter for Collecting Debts — In order to appear polite and maintain good relations with those who owe you, collect the debt using a letter. When someone borrows money, of course he is obliged to pay off all these debts. Maybe we get a little annoyed when the debtor doesn’t pay off the debt on time. In order not to damage your good relationship with the debtor, you can collect it using a letter.
In addition, this letter is also very important when collecting debts in business matters. Debt bills make the collection process appear polite and professional. Unfortunately, there are still many people who are confused about making bills. In fact, bills are easy to make.
The most important thing is, the invoice that is made contains things that are needed as information to pay. That way, it is important for everyone to know how to make a bill to make it easier for them to work. In the following, an explanation of an example of a debt collection letter and how to make it.
How to Make a Collection Letter
Basically, a bill of debt is given with the aim that the customer immediately pays a debt or payment that has not been paid off. However, it should be noted that collecting debts politely, with the aim of maintaining good cooperation. When sending a collection letter, you must attach an invoice and this is very important.
Writing a debt collection or payment letter is not a difficult thing. Especially because every company usually already has its own invoice and invoice format. Thus, customers can find out in detail the types of goods ordered and their prices. However, below are some steps you need to pay attention to in making a collection letter.
- Make sure carefully if the customer / client has not paid their debt or obligations,
- record the date of order and the type of goods that have been ordered,
- record the name of the company / customer to just be sure,
- Prepare a copy of the invoice for payment that has not been paid,
- billing draft, stating the date of ordering the goods , the payment deadline that has been agreed upon, the amount of the bill, and the invoice number,
- Attach the invoice for payment that has not been paid in the letter, and the letter is ready to be sent to the customer.
Example of Collection Letter
The main content of this Invoice asks the buyer to pay off the debt immediately, besides that there are other things that must also be included, namely:
- That the buyer has not paid his debt
- Connected to the order, delivery of goods and invoices
- Remind that the due date has passed
- Amount of debt not yet paid
- End with the hope that the buyer can immediately pay it within the deadline.
Collection letter Example
Tips for Successful Debt Collecting
Loans paid are better than unpaid debt. Therefore regardless of whether you provide debt as aid or as an investment, of course you still expect your money back. Especially if the amount is relatively large, such as investment debt. The following are debt collection tips that you can follow:
- Good communication between the two parties is necessary to reach a mutually beneficial agreement.
- Create a debt repayment schedule, so that progress can be measured in debt settlement.
- Keep a neat record of the amount owed and the remaining balance and when payments will be implemented and can be stated in the collection letter.
Points that Must Be in a Purchase Debt Collection Letter
A debt collection letter is an official document that has legal force, so this letter must be written in accordance with the applicable legal writing rules. Apart from that, there are several points that must be included in this official letter.
- Company Header
A debt collection letter must include the official company header at the head of the letter. This indicates that the debt collection letter was issued by the company in question.
- Place and Date of the Letter Made
Include the place and date the letter was written.
- Number, Subject, and Attachment
An official letter needs to include the letter number, subject, and attachment (if any).
- The Intended Party
An official letter must also clearly state the intended party, namely the full name and full address to avoid being misdirected.
- Letter opener
Give the opening greeting and the opening sentence at the opening of the letter.
- Contents of the letter
The contents of the debt collection letter contain the purpose and purpose of the letter, including:
- A description of the due date that has been passed.
- A statement that the customer has not completed or paid installments and evidence of financial statements.
- The amount of arrears, installments, or debt that must be paid by the customer.
- If you wish, give additional time due in the hope that the bill will be paid off soon.
- Closing Letter
This section contains a thank you and a closing greeting.
At the end, include the sender’s name, signature, and official company seal. Also add the complete address and contact that can be contacted.
How to Do Intensive Billing
Customers who are often late in paying bills must be warned by providing intensive billing statements or a collection letter. If you face a customer who is often late in making payments, you must continue to follow up (by providing a bill) until you get the bill. Sending a bill can be done in several steps, namely as follows:
- The first billing letter contains a warning to the customer about an obligation that is past due.
- The second collection letter is somewhat firmer than the first.
- The third billing letter, enclosing billing statement 1 and 2 and its contents confirms and is accompanied by a stern warning when the buyer can pay the arrears, the creditor will collect through the bank bill.
- The fourth collection letter is the final warning with a louder tone, namely in the form of threats to the debtor to complain to the authorities.
Each bill that is sent has a different ‘level’. The longer the bill is paid, the more intense the written documents are given by the seller to the customer.
Benefits of Collection Letter
Personal visits, phone calls, and letters are three of the most common approaches used by small business owners to collect overdue bills. Given that many small business owners don’t have the time or opportunity for personal visits or phone calls, letters are often an option. The attached file contains three sample collection letters, each designed for a different purpose.
Each letter in sequence was made with stricter words than ever before – from friendly reminders to notifications that you would turn things over to a lawyer or collection agency. You can easily modify this letter to suit your situation or personal style.
Basically, a collection letter is a written document addressed to customers to pay debts to sellers or companies. The goal is to remind customers to immediately make payments before they are due and to avoid potential fraud.
Meanwhile, a property debt collection letter is a letter issued by a state or private company against late payment of property. This letter is given to customers when the home installment payment is overdue or if the payment is less than the specified minimum.