What Is a Collection Letter?
There are two kinds of collection letters. One pertaining to an accumulated debt and other for collecting order and supply. The first of the collection letters are written notifications of a pending amount, meant to prod past-due customers to make a payment. These collection letters are sent usually one after another, using a stern tone and language that gets more direct with each successive letter until at least some payment is received. An effective letter of collection can achieve its purpose without destroying the customers goodwill that was painstakingly acquired over the years. The other collection letter is a seller or exporter’s order that accompanies a demand draft or time draft and instructs the collecting and remitting banks on interest charges, case of need, and protest. Our focus will be on the letter for accumulated debt.
How to Make an Effective Collection Letter on Microsoft Word?
When you’re writing a collection letter, you have to be forward with your intentions but without compromising your good relationship with your tenant. So instead of just handwriting “Payment due today” on a small piece of paper, you can type a letter for formality. Because making a collection letter is typically lengthy and people don’t enjoy the idea of writing to delinquent customer accounts, they often look for collection letter templates to help them out. However, if you’re curious about how to make your own letters then just follow the steps below.
1. Identify What Kind of Collection Letter You Have to Make
There are four types of collection letters you can send for accumulated debts. The first should be sent after you try to reach the tenant or customer through telephone and email. If you haven’t received the payment, contact them first, and if you have no answer, then you can send the first letter. The second letter should be sent after you make a telephone call to confirm if the first letter was received and the customer wants to arrange for the payment. You send the third collection letter after you attempt to again reach the customer but only if your customer hasn’t communicated with you. The final letter would only have to be sent if it is evident that your customer is unable to pay his debts or is unwilling to pay. Insert some assertiveness in the final letter but keep the professionalism intact.
2. Knowing What Information to Include
When you’re writing a collection letter, you have to keep your content short and to the point. Let your tenant know when they have to pay, specify your date. You’re also going to have to include the payment methods that you accept, such as: checks, credit card, debit card, or cash. So that they can reach you if they have any questions, attach your contact information. This includes your phone number, email address, and mailing address. The fonts you use has to be professional looking. You can opt for the standard fonts like Arial, Helvetica, or Times New Roman. The size can be around 11 to 12. Don’t make it look too small or too big.
3. Printing and Delivering
Before you send your letter, make sure you proofread the content. You can use tools like Grammarly to check for any grammatical or punctuation errors. Once you finish, fold your letter and slip it into a postage-paid envelope so they can easily drop a check into the mail.