Telephone calls can sometimes prove more effective than sending out a debt collection letter. Sending out a letter or an email can provide a clear record of your attempts to recover your debt.
The first course of action would be to send out a customer statement at the end of each month.
It may sometimes prove challenging to telephone all of the customers that owe you payments if you have many companies or people to chase. Standard formatted debt collection letters can be an effective method in any credit control procedure.
A 7 day collection letter may be required if a customer has not paid their account within the credit terms as agreed. Before sending a payment reminder, ensure that you have taken all the steps available in credit control to try and collect the money. It includes telephone calls, sending out statements and letters.
You should only ever send out one final chase reminder that stipulates the course of action to take if payment is not received within a deadline set out in the letter.
It is worth considering if this is the right course of action, especially if you wish to continue business with this customer. You also have to be prepared to take the legal action if the balance remains unpaid after 7 days. If you need to start legal action, go to Money Claim Online if the amount is below £100,000. It is a simple process, but it will still take time for the customer to pay you.
Debt Collection Letter
There are debt collection companies which can send a debt collection letter for you and take legal action. When they collect the money, you will have to pay them a percentage of the amount recovered.
Further information on small claims can be found on the Money Claim Online website.
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