Another 30 day overdue sample letter for collection follow up:

We shared a sample collections letter for 30 days overdue.

http://faoblog.com/processes-ar-collections-follow-4/

Reader’s feedback:

A reader Prince Jaiswal from Linkedin group Finance & Accounts (F&A) Professionals remarked:

“Good One bt the letter immediately conveys the message of penalty/legal actions… I think, this should be the last step, otherwise it destroys future business relations….. other hand, it is also true that if large dues are there in books, there is no question of doing future business…. however, still good relations can do wonders.

Thank you Prince for your feedback. He is right in saying that relationships go a long way. I have seen outsourced collection processes fail when the service provider deploys mechanical processes, especially where the customers of the client are high profile entities.

One more point, in our sample, we mentioned penalty / interest as per invoice terms, and not legal action. It is important to bring out the sale contract terms, but in a polite manner.

A softer sample collection reminder:

A softer sample letter could be:

———————————————————————-

Date:

 Firm Name,

Address

 Re: Invoice number: XXXXX   Balance Due: YYYYY

Dear Sir,

 We know maintaining a good credit record is important to you. Therefore we’d like to alert you to the fact that payment of your invoice no. XXXXXX, due on mm/dd/yyyy, has not yet been received. As a result, your account is showing a past due balance of YYYYYY.

We assume payment was inadvertently overlooked. It happens. So, if you haven’t already put a check in the mail, please remit payment to:

Your Client Name

Address

If you have any questions, please contact us at [Phone Number] to discuss your account.

Sincerely,

———————————————————————-

It may be noted that these are just samples, you may need to draft appropriate communications as required by the businesses.

 

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