How to Write a Collection Letter

Introduction

Writing effective collection letters is crucial for ensuring timely payments from clients. Here’s a guide to writing collection letters using Boulder Invoice, designed to help small businesses manage receivables efficiently.

Steps to Write a Collection Letter

1. Be Professional: Start with a professional and polite tone. Use Boulder Invoice’s templates to create formal letters.

2. State the Facts: Clearly state the amount due, the due date, and any late fees.

3. Include Payment Options: Provide various payment options to make it easy for clients to pay.

4. Request Action: Politely request immediate payment and offer assistance if needed.

5. Follow Up: Use Boulder Invoice to track outstanding invoices and send follow-up letters as necessary.

• View free template

  [Your Company’s Letterhead]

  [Date]

  [Debtor’s Name]
  [Debtor’s Address]
  [City, State, ZIP Code]

  Subject: Outstanding Payment Notice

  Dear [Debtor’s Name],

  I hope this letter finds you well. We are writing to inform you that according to our records, there is an outstanding balance on your account with [Your Company Name] in the amount of [Amount Due] that remains unpaid. The payment was due on [Due Date].

  Invoice Number: [Invoice Number]
  Invoice Date: [Invoice Date]
  Amount Due: [Amount Due]

  We understand that oversights happen, and we are confident that this matter can be resolved promptly. We kindly request that you remit payment within the next [X] days to avoid any late fees or further action.

  Please find the payment details below for your convenience:

  Payment Options:

  1. Online Payment: Visit our website at [Website URL] and follow the payment instructions.

  2. Bank Transfer: [Bank Name], Account Number: [Account Number], Sort Code: [Sort Code], Reference: [Your Reference]

  3. Cheque: Please make cheques payable to [Your Company Name] and send to [Your Company Address].

  If you have already made this payment or if there are any issues or discrepancies that you would like to discuss, please contact our accounts department at [Phone Number] or [Email Address] at your earliest convenience.

  We value your business and hope to continue serving you in the future. Your prompt attention to this matter will be greatly appreciated.

  Thank you for your cooperation.

  Sincerely,

  [Your Name]
  [Your Title]
  [Your Company Name]
  [Your Phone Number]
  [Your Email Address]

Conclusion

Effective collection letters help ensure timely payments and maintain positive client relationships. Boulder Invoice offers tools to help you create professional collection letters easily. Try Boulder Invoice today to streamline your receivables management.