Reaching out to your customer once their due date has passed is like pulling teeth. Nobody enjoys doing it but it needs to be be done. However, the motivation of getting what you are owed should be enough to encourage you to reach out. Sadly, sometimes these communications don't help at all with receiving the past due payment. How you contact your customer about their delinquent accounts must be a thought-out process. There is no right or wrong answer when it comes to collections, however there are plenty of tools out there that can help you get paid faster. Don't be afraid to get some help. To begin, utilize a sample collection letter to help you effectively craft the communication your sending to your late paying customers.
How to Use a Sample Collection Letter to Make Sure You Get Paid
1) Free is Key - Don't ever bother paying for a sample collection letter. There are plenty of free versions available that will be just what you need to craft your letter.
2)Take the Legal Advice - The great thing about immediately referencing a sample collection letter is that it is a cheat sheet for legal terms you can include in your letters. For example, you can let your customers know that if they don't pay, you will report it to the I.R.S. as "Bad Debt Loss" with form 1099-A.
3) Listen to the Language - A sample collection letter can be written for very different types of payment situations. Try to evaluate this before using. You wouldn't want to use a form that was meant for a severe payment situation to send to a loyal customer who has missed their first payment. It's important to create collection letters around a situation. Slowly increase the severity of the language in relation to the situation. It will really help at those moments you find yourself needing to send multiple letters to one customer.
4) Make it Your Own - The point of using a sample collection letter isn't to use the letter word for word but to make it your own. Consider it the base of your communication but revise the letter to fit your relationship with that customer specifically. Include references to your business and use a language that is natural for you. Also, include your logo on the letter. Many customers just give a quick glance at collection letters; make sure they know it's from you. Finding a quality sample collection letter is no easy task. Check out these examples of collection letters created for any situation: it's a great place to start crafting the most effective collection communication.