Last post we covered various modes of a follow up for collections processes.

http://faoblog.com/processes-ar-collections-follow-3/

delinquency follow upA sample collection reminder letter:

 

Let me share a sample collection letter draft with you.

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To

Firm Name,

Address

Dear Sirs,

Sub: Payment due reminder

We would like to remind you that a sum of Rs. …………… has become overdue by nearly 30 days. This amount was for your purchases of  XX units of ABC product, which were invoiced to you vide instrument number ABC-XXXXX, dated MM-DD-YYYY.  This was received by your warehouse on MM-DD-YYYY vide material receipt no. DEF-XXXXX.

You are requested to clear this due immediately to avoid any penalty / interest on the amount due based on ther terms of the abovementioned invoice.

Yours faithfully,

For XYZ Company

 Sd/-

(Mr. MMM)

Collection department

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You can customize your letters based on the way your client wants and make it effective.

Reader Feedback:

 We would like to share a reader feedback on the post on pre-delinquency follow up.

http://faoblog.com/processes-ar-collections-follow-2/

Nathan Slauson in the Lean Six Sigma group of Linkedin said:

I agree with the pre-delinquency follow-up to validate that the client has accepted the billing. Many times issues that would delay pay can be identified before payment is past due. As a construction professional issues with a billing are not typically identified by Project Managers, but by the accounting department trying to collect a past due bill. It clearly is in the best interests of the company to have follow-up. Note: that the client also seems to like the extra concern about their project. Better customer service is also a positive for the company.

Thank you Nathan for your feedback.

 

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