Successful Collection Letters for Overdue Receivables | Business Town

Successful Collection Letters for Overdue Receivables

While I think that generally the best single way to get an overdue account to pay is to phone them, it can be even more effective to combine phones calls with either email or snail mail reminders as well. Furthermore, if you have lots of accounts that are overdue for small amounts, it will be more efficient to first try collecting with reminder notices.

The following reminders, which are ones that I would use, are ones that you could send by email or regular mail. An initial reminder notice I might send only by email. Later notices, unless the amount is really small, I would send by regular mail as well—it just seems extra formal and indicates that you are seriously focused on their situation. As you will notice, each of the three sample reminder notices adopts an increasingly aggressive and impatient tone.

Especially if you haven’t run a business before, collecting overdue bills might seem like a very bothersome chore. But it is one of the many steps that you need to do to start and run a successful business.

Reminder Notice #1

Ms. Alice Beecher
Beecher’s Gift Emporium
110 South Main Street
Milford, MA 01757

Dear Ms. Beecher,

Thank you for your recent order. Our records indicate that payment for our invoice number 786755, your purchase order number 12345678, for $29.95, has now become due and we have no record of your payment. If you have not done so already, kindly send payment now.

Thank you again for choosing to do business with us.

Sincerely,
Claire Fielding

Reminder Notice #2

Ms. Alice Beecher
Beecher’s Gift Emporium
110 South Main Street
Milford, MA 01757

Dear Ms. Beecher,

Our invoice number 786755 for $29.95, your purchase order number 12345678, is now seriously overdue.

We have sent you an invoice for this order, account statements reflecting an overdue balance, and a previous overdue notice.

We ask you to immediately send us payment for this invoice.

Thank you for your anticipated cooperation in this matter.

Sincerely,
Claire Fielding

Reminder Notice #3

Ms. Alice Beecher
Beecher’s Gift Emporium
110 South Main Street
Milford, MA 01757

Dear Ms. Beecher,

We hereby demand that you pay out invoice 786755 for $29.95, your purchase order 12345678.

We have already contacted you on multiple occasions in attempts to collect this overdue bill. And yet we have still received no payment.

We demand that you pay this invoice immediately, or we will have no choice but to take further action to collect this long overdue debt.

Sincerely,
Claire Fielding

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About Bob Adams

Bob Adams is a Harvard MBA serial entrepreneur. He has started over a dozen businesses including one that he launched with $1500 and sold for $40 million. He has written 17 books and created 52 online courses for entrepreneurs. Bob also founded BusinessTown, the go-to learning platform for starting and running a business.

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