4 Tips For Writing Demand Letters -姉summer

Branding You’ve sent reminder notices, copies of the original invoices and statements yet the bill still hasn’t been paid. This is a .mon scenario that most businesses will encounter in day to day trading. Not only is this situation frustrating, it is usually not related to core business activity and inefficiently allocates valuable resources. One effective tool for bad debt recovery is the use of a demand letter. Here are some useful tips for preparing a Demand Letter for the recovery of outstanding debt. Professional A well formatted letter typed on .pany letterhead looks professional and highlights the seriousness of the situation and formalises the debt recovery process. Maintain the professional manner with the way the letter is set out and written. Spell and grammar checks should be done before printing and proof reading is critical. You do not want the debtor to misunderstand your demand. Clarity Be clear in what you are requesting. Set out the date of the original invoice, reference number and amount. Remind them the account is now outside your trading terms and give them options of how this bill can be paid and a due date within seven days of the date of the letter or immediate payment on receipt of the letter. You could also explain in detail what constituted the original sale or service provided. List the products they have purchased or the hours spent if it is a service invoice. But keep the letter brief, concise and preferably on one page. Plain English is also crucial so the debtor understands exactly what the letter says. Cite Previous Correspondence Refer to all previous correspondence you have sent as well as phone calls that have been made. This should be part of your collection policy that all dealings with a customer are recorded. A photo copy of the original invoice and reference to the terms and conditions that they agreed to leaves no doubt they incurred the debt and are now in breach of your terms. Let them know their future credit may be in jeopardy if the debt isn’t cleared. Sometimes this will be enough for a customer that relies on you for goods or services without having to pay by cash. Debt Collection Agency Referral Advise of the actions you will take if the letter is ignored, that is, that you will refer the outstanding account to a debt collection agency or decide to proceed with legal proceedings. Some debtors may see this as a bluff so it is critical that you follow up on everything you have said in your letter. You could continue with letters of demand on a weekly basis but this can be time consuming and frustrating if nothing is being done. If there is no response after seven days then refer the debt to a professional collection agency. Debt collection agencies are experts in debt recovery and are trained to deal with overdue accounts. They are aware of all excuses and avoiding tactics and utilise their recovery tools to ensure you have the greatest likelihood of recovery. About the Author: Debt Collection . Article Published On: 相关的主题文章: