Collection Letter

Collection letter is a serious letter and to be written in a specific format. It is generally written in order to collect a debt. Drafting a collection letter which is effective can be challenging. Good collection letters will get you paid and retain the customers a well. A collection letter reflects your business. Keep it strictly professional. Do not use abusive language and never threaten. You can be a bit sarcastic if needed. Write a collection letter presuming that the customer will pay. Do not give the customer any chance to refuse. Attach an envelope with the letter with postage. Make things easy for the customer and be sure that he will revert. Use a business letter format and mention the deadline. We wish you luck and hope that these tips will help you.

A collection letter is written to those who have failed to make some payments. A customer, vendor or some client is generally the addressee of a collection letter. Writing collection letter is not a pleasant experience but there is no need of labeling it as a difficult task.

Here are some tips which will help you in drafting a collection letter.

  1. Write the facts straight. Write every detail about the client and the account for which the letter is being written. Mention the correct amount which the other party has to pay.
  2. Write a brief, one page letter that serves as a courteous reminder. State the basic facts about the debt for which the letter is being written. Set a deadline in your letter to avoid any delay in payments.
  3. If you do not receive a response by the date specified, you can send a second letter. In your second letter mention the details about your first one. Set a date as a deadline again.
  4. In order to collect the payment you have to increase the harshness of each the letter. Be very formal and show no mercy in your third letter. You can mention that the matter can be taken to the collecting agency or something like that.
  5. Be very careful about the language you use. It should not have a tone of threatening and at the same time it should pressurize the addressee.
  6. Let the addressee believe that whatever may be the reason, you will not stop reminding about the collection. You should sound patient through your language.
  7. A collection letter is a very formal letter which is supposed to be serious in tone. It should follow all the rules of a technique of a formal letter which are:
    • You have to choose a paper which is 81/2 by 11 inch in measurement. The envelope should be a matching one too. The paper should be either white or cream or beige in color. Avoid stationary which is of bright colors or have distracting graphic elements.
    • Include your return address in the top right place of the letter. Add the recipient's address on the left of the side just underneath where you have mentioned the return address.
    • Skip two lines and begin the letter with a suitable greeting. Include the name of the name of the recipient if possible. If the name cannot be included, address the letter to Sir or Madam. In case of a woman being a recipient, use Ms. It is a formal and neutral way of addressing women.
    • Skip the two lines and write the introduction. The initial paragraph of the formal letter should state the purpose of the letter. Be specific. There should not be any need to guess the meaning of your letter. The language used should be very clear.

A collection letter should be very formal and effective. It should be free of any loopholes and should not sound kindhearted. It should be authoritative.

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