A collection letter is usually written by creditors to their debtors who owe them money, asking them to pay that money. These letters arise due to the facility credit sales involved in the business. It is very common for Collection Letter to provide goods or services on credit in order to expand the business. Every business maintains its credit policy under which the sellers mention the time period after which the money is to be paid. The letter is written to remind the debtors about their payments or to ask the buyers to pay the amount in case of delay of payment.
Collection Letter Sample
There are various features in a collection letter that distinguish it from other business letter .some of the features are:
- There are usually two parties involved in a collection letter the buyer and the seller
- The prime objective of every collection letter is to realize the dues from customers
- Collection letter are often written in a series.
- Some of the collection letters also include legal threats, warning the customers of the repercussions that they will face in case of nonpayment of dues
- The collection letters are sent through registered post.
Collection Letter Sample Overdue Accounts
- The tone of a collection letter should be straightforward and formal
- The letter should clearly communicate to the amount due and the number of days exceeded from the date of payment.
- You can also grant some extra time to the buyer in the letter, giving him time to arrange funds.
- Clearly mention the consequences that the buyer will have to face for its inability to pay the dues.
- Always proof read the letter before sending it to avoid any kind of spelling and grammar mistakes.
Sample Of Collection Letter- Unpaid Balance
If you are facing any difficulty in writing your own collection letter you can take help from the sample that are provided on this site.
Format of a collection letter
Your company’s Name
City, State, Pin Code
Receiver’s Company or Address
City, State, Pin Code
Content of the letter
Sample Of Collection Letter For Medical Office
All the other details in this letter will be according to the format mentioned above; this sample is regarding the situation when there is nonpayment of dues.
Sample Of Collection Letter For Over payment
With reference to the agreement signed by you against the goods of amount Rs55000, which you took on credit on 15th December 2017 with invoice number 12276, would like to inform you that your payment is due on 15th January. you have already exceeded the date by 10 days and request you to clear your dues latest by 20th January as possible otherwise legal action will be taken against you .I hope that you will abide by the provisions of the agreement and will make the payment as soon as possible.
Sample Of Collection Letter For Business
In case you are not able to make the payment to our place we can Collection Letter pick it from your place, feel free to contact us.
Mr. Sham Singh