How Do Create an Effective Collection Letter

How Do Create an Effective Collection Letter

When your customer isn’t paying you as promised the first thing you may consider doing is to send a dunning collection letter.  Your second concern, after the realization that your not getting paid as promised, is going to be how to make the letter effective with out losing the customer. You will want to walk a tight rope between getting the money and customer retention.

 Things not to do.

 1. Don’t  curse or use threatening language

2. Don’t give them more than 10 days to pay

3. Don’t make the letter long winded or rambling

4. When  writing a collection letter don’t use passive language.

 Things to do.

  1. Make sure everything you put in the letter is accurate and concise. If you are wrong about date, amounts or other facts you open the door for further delays while you customer picks the letter apart and putting you on the defensive

 2. If you haven’t heard from the customer or received payment by the 10 day deadline you should make a phone call demanding payment or write another letter.

 3. If you choose to send a second letter you will need to ramp up severity of each subsequent letter.

 4. If you have sent three letters and not gotten the delinquency resolve you then need to engage a collection agency to take over.