There are several steps that you need to follow when typing a collection letter template. Also, it’s significant to involve a suitable language to provide your clients with a formal notice that they owe a debt.
Types of collection letter templates:
There are usually four types of collection letter templates that are sent to customers. However, the nature of the first two letters is lighter. On the other hand, the last two letters are typically assertive. You may also like Salary Increase Letter Template.
- First collection letter:
This letter template should send when you have tried emailing or calling the customer already. Typically, you have to send this letter at least 14 days after the due date of the invoice. You can make it more official by printing it on your company’s letterhead that includes your business mailing address and logo.
- Second collection letter:
You should again reach the customer through email or phone before sending this letter. In addition, ask the customer that he got the letter or not and if he would already prepare to make the payment. Hence, if your attempts become unsuccessful then send a second debt collection letter. The main purpose of this letter is to indicate to your customer that you have tried to reach your customer through the first collection letter.
- Third collection letter: After sending the second letter and you don’t receive any response from your customer then give your customer a call. However, if your customer hasn’t tried to communicate with you for weeks then send him the third collection letter template. Furthermore, it’s important documentation in case you want to take legal action against the customer.
- Fourth collection letter:
After sending the above three letters and your customer still doesn’t try to reach you then send this fourth collection letter. Moreover, you can use more assertive language in this letter still remaining professional. You should also check the Immigration Reference Letter Template.
Features of collection letter template:
Collection letter samples are very helpful in different businesses and organizations. Likewise business letters, collection letters also contain some unique features such as;
- Objective: The main objective of this letter is to tell the customer that they have owed a debt. It also describes that the customers are expected to pay before the deadline.
- A reference to the last letter: When typing the second, third, and fourth letter you must include the reference to the last letter that you have sent to the customer.
- Legal action warning: Hence, when the customers ignore the first three letters then add a legal action warning in the fourth letter. However, if a customer still doesn’t reply or make a payment you have to take legal action against him.
- Involved parties: Generally, the parties involved in this letter are the buyer and the seller. You would type the letter and send it to the former for the collection of payment.
- Commanding principle: This includes the collection of dues by keeping the customer with the company.
- Language: Most importantly, you should use straightforward, effective, friendly, and professional language in the letter.
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In conclusion, the collection letter template is such a useful tool that helps you to ask for payments from the debtors. Moreover, it can also be used for the purpose of collecting refunded money on defective or damaged products.