Debt Collection Letter

Debt Collection Letter

Telephone calls can sometimes prove more effective than sending out a debt collection letter. If after chasing your client for the money you are still given the run around it is worth considering putting it in writing.

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. Follow it up with a phone call to the client.

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 customer 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. Sending a 7 day letter should always be a last resort.

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 Instructions

  • Download the debt collection letter using the link at the end of this page
  • Open the letter in Word or word processing program that you use
  • Enable editing of the document
  • Enter the company name and address at the top.
  • At the bottom enter your name, title and company name.
  • Save this as a template to use for further letters
  • The date is automatically updated
  • Enter Customer details
  • Complete the reference details, include as much information as possible
  • Enter the amount that you are claiming
  • Save the letter as a separate file
  • Print, sign and send with a statement to the customer

Debt Collections 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. It can take all the stress out of chasing clients for money, but you will have less money in the end.

Download our free debt collection letter. By downloading this letter you agree to our licence agreement.

Further information on small claims can be found on the Money Claim Online website.

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