9 Secrets to Writing Great Collection Letters

4 Oct

You know what you want to say. You may even know how you want to say it. But pulling your thoughts together to create an effective collection letter can leave you feeling like you’re writing the next great American novel!

The good news is, an effective collections letter doesn’t have to be a long dissertation. In fact, the most effective ones are short and to the point. There’s no need to explain about why you want to be paid or how it affects you and your business when they don’t pay on time.

Our Profit Maximizer program, a powerful web based record-keeping and management software, provides a series of effective Collection Letters already written and ready for you to use. All you do is open the template, insert your information and send.

If you want to write your own collections letters, the following 9 secrets will help you craft the words to get the wheels turning so you can get paid!

  1. Limit letter to one short page
  2. Use short sentences and brief paragraphs
  3. Label the envelope personal or confidential
  4. Sign the letter personally
  5. Avoid adjectives that could be misunderstood as insulting
  6. Don’t apologize (if there’s a problem with your services or goods, the client bears the responsibility to contact you about that way before incurring a past due invoice)
  7. Make important processing details clear; payment amount, contact info, reference numbers, addresses, phone numbers, fax numbers and contact person’s name
  8. Be positive – You value their business and perhaps the past due invoice is an oversight
  9. Communicate fairly – Communicate firmly – Communicate urgency

It’s in your client’s best interest to take action. By doing so, they avoid bad credit or having a hold put on the account, both are points you might consider including in your 60 day collection letter. But hold off on any threats or ultimatums to bring in a 3rd party collections agency until you’re far enough down the line that such action is warranted and even then, don’t threaten any action you aren’t prepared to keep.

Remember, your primary goal is to get paid. If you can work with someone to resolve a debt and thereby create good will, that’s even better!

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