A Business Collection Letter
That Gets Results!

You hate having to collect unpaid money owed to your business. After all, you did not go into business to have to chase down delinquent customers.

The reality is some people just won't pay on time. When that happens, and it will, you will have to send a business collection letter.

Don't take it personal if your customers aren't paying you on time. Inquire why the bill is late. They may have forgotten.

Here's where a gentle reminder, via a business collection letter, comes in. We've included a sample collection letter below.

The goal here is to be both courteous, but stern, in your communications. All without running afoul of federal guidelines, called FDCPA laws, as well as state statutes.

FDCPA stands for Fair Debt Collection Protection Act, which governs and regulates how collection agencies and businesses can go about collecting debt. Read more about it here.

Among other things, you can't harass, mislead or lie to your customers.

Here are some points your
business collection letter should contain:

-Be Positive: Give them a friendly reminder immediately following the bill's due date.

-Assign the Right People: Have one person take on the task of contacting delinquent customers. It's not a good idea to give this duty to your sales people.

-Increase the Intensity: While your first letter can be a friendly reminder of a past due bill, the second one needs to be a bit more stern. A sample collection letter below shows this.

-Hire a collection agency: After repeated phone calls, and two statements, its time to introduce a third party.

This is important for a couple of reasons:

1. The psychological impact of an outside third party resolves many delinquent accounts, since someone else besides yourself, is communicating with your customers.

2. Statistically, it can be proven that the earlier you introduce a collections agency, the more likely you'll recover your money. As the account ages, the likelihood for payment decreases significantly.

Discover some of the tools and strategies used by commercial collection agencies and why these resources make them so successful at collecting business debt.

SAMPLE COLLECTION LETTER:

name
street
city, state, zip

Dear ____ (name):

We are interested in our customers and are always trying to find new ways to improve our service.

For these reasons, we are inquiring if there is a reason for your delay in paying your long overdue account. If we can help, by making your payments smaller or extending our terms or by recommending a loan company, please let us know.

We would appreciate a word from you, as well as your check.

Sincerely,

(name)
(title)

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