Effective Collection Letter- Alternatives before pursuing legal actions

Selriel By Selriel, 26th Nov 2015 | Follow this author | RSS Feed | Short URL http://nut.bz/38c4tk1j/
Posted in Wikinut>Writing>Letters

Improving cash inflows is challenging to all businesses. Many business dread in dealing with customers with overdue accounts.Sometimes this matter are unavoidable, and some techniques should be employ to clear this situation.

Legal course should be the last resolution for collection of overdue accounts. An effective collection letter contributes success to collection system.

Reminder Letter

Business relationship between creditor and debtor is important. It is neccessary to choose right words to maintain good connection.

(Date)

RE: Unpaid invoice # {Enter invoice reference}

Dear {Recipient’s name}

Thank you for your recent business. Our records indicate, however, we find that your account shows unpaid balance due totaling to (Amount). Please see below statement.

We are fully aware that a matter like this slips one’s mind. It has happened to us, too. But you must realize that, from our point of view, it is serious, we are sure that you understand this. According to our check-up, there is no error in our records, but, if you think there is an error, please let us know.

It will be highly appreciated if you will pay this balance promptly or inform us of any reason why you should not do so.

Sincerely,


{Your name}
{Your position}

Letter for Short Payment

(Date)

RE: Unpaid invoice # {Enter invoice reference}

Dear {Recipient’s name}

Thank you for your recent payment on (Invoice Reference) for (Amount), leaving an outstanding balance of (Balance) on this account as of today’s date.

If you have not already done so, we ask that you please take care of these charges now. If further actions required on our part to expedite payment, please contact (Name), our Collection Staff at (Tel. No.).


Sincerely,

{Your name}
{Your position}

Letter for long Past Due Account

(Date)

RE: Unpaid invoice # {Enter invoice reference}

Dear {Recipient’s name}

This letter will serve as a last piece of warning to you. As you are aware, (Debtor Name) is in default of its obligation to pay the amount of (Amount) from (kind of items owed) that were delivered to you. This amount is now more than 530 days overdue. Even though we have tried to contact you several times and sent you reminders, you haven’t shown any strong commitment to pay your obligations.

Please note that as per our terms and conditions noted on your Invoice, you will have to pay back the amount along with the accrued interest of 20%. Hence, now the total amount payable to us is (Amount plus computed interest).

Unless the payment is made within the next 15 working days, we will have no choice but to send you a legal notice.

Kindly govern yourself accordingly,


Sincerely,

{Your name}
{Your position}

Final Demand Letter

(Date)

RE: Unpaid invoice # {Enter invoice reference}

Dear {Recipient’s name}

We have repeatedly requested payment on your overdue account. For some reason, you have chosen to ignore our request for payment. Total amount now due is (Amount). It is our desire to avoid legal action, unfortunately we see no alternative.

Accordingly, we shall take this account to legal status within the next five days starting the receipt of this demand. Enforced action to collect this obligation will result to additional fees to you.

Should you wish to avoid litigation, you should contact the office immediately and arrange to pay your debt.

YOU HAVE FIVE DAYS IN WHICH TO RESPOND REGARDING YOUR POSITION.


Sincerely,

{Your name}
{Your position}



You may note some legal offense and penalty as consequences for not paying debt.

(Date)

RE: Unpaid invoice # {Enter invoice reference}

Dear {Recipient’s name}

Based on the our records it appears that your outstanding accountabilities has reached the amount of (Amount). This amount covers your long overdue account for the (Items) that you ordered and were respectively delivered to you.

However, despite repeated demands, you persistently refused and continue to refuse to settle your outstanding accountabilities with us. To further aggravate the situation, the (Bank Name) checks you issued for payments of the outstanding accountabilities were dishonored by its drawee bank, to wit, when the checks you issued presented for payment within (90) days from the dates appearing thereon, they were returned to us for the reason “ DRAWN AGAINST INSUFFICIENT FUND”. As a result of such, your total outstanding obligations remain unpaid to date.


In view of the foregoing, FINAL DEMAND is hereby made upon you to pay the amount of (Amount), with legal interest, within THREE (3) DAYS from the receipt of this notice. Otherwise failure to comply herewith shall constrain us to initiate the necessary legal actions against you for the protection of its interest, including but not limited to civil action for collection and criminal cases for violation of Bouncing Checks Law (Batas Pambansa Blg. 22) and / or Estafa. According to Section 1 of BP Blg 22: “the penalty of imprisonment of not less than 30 days but not more than one year OR a fine of not less than but not more than double the amount of the check, which fine shall not exceed P200,000.00, OR both such fine and imprisonment at the discretion of the court.”

In this regard, (Company Name) shall likewise collect from you the cost of filing and docket fees, litigation expenses and other incidental and consequential expenses.

We trust that you give this matter your preferential attention to avoid costly and embarrassing litigation.



Sincerely,

{Your name}
{Your position}

Tags

Collect Faster, Collection, Collection Letter, Letter, Receivable

Meet the author

author avatar Selriel
An accountant who is fond of writing poems.
I love being a writer, it gives us the opportunity to tell stories, to create a character, to design a situation and be God of our own writing.

Share this page

moderator Steve Kinsman moderated this page.
If you have any complaints about this content, please let us know

Comments

Add a comment
Username
Can't login?
Password