You can send a debt collection letter to a B2B client (another business) or an individual consumer. What is a debt collection letter?Ī debt collection letter is a formal debt reminder that you send (or hire a collection agency to send) to a nonpaying client. Learn more about debt collection letters and the debt collection process below.Įditor’s note: Looking for the right collection agency for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs. After you send enough letters, you can transfer the client’s debt to collections, though you may want to exhaust all other options before doing so. If your typical communication channels aren’t succeeding in retrieving your clients’ unpaid debt, you may need to take more formal action.ĭebt collection letters should be the first step in your action plan. It’s one thing if a client pays your most recent invoice a week or two after it’s due it’s another if you’ve gone months without payment, especially if the invoice is large. This article is for business owners and freelancers who are looking to formally pursue debts from nonpaying clients.A debt collection letter should include the total debt owed, the initial due date, and any necessary warnings of impending legal action.You can use a debt collection letter to set up a repayment plan or warn of impending legal proceedings.

A debt collection letter reminds a debtor that they owe you money.

If there are circumstances beyond your control which are preventing payment, this is your FINAL OPPORTUNITY to let us know. Once paid, please supply a receipt to this office as a matter of urgency. Should you wish to avoid this, please make payment into our account within the next 7 days, the details of which are: If listed today, it will remain on your credit file until (today’s date- 5 years in the future) and severely impact your ability to obtain credit during this five year period. Invoice number (invoice number), is now more than 60 days overdue, meaning a credit default can be listed against you.

This amount was due for payment on the (due date of the invoice).ĭespite numerous requests, payment has not been received and the debt has today reached a critical stage which requires your URGENT ATTENTION. We write regarding the above-mentioned which remains outstanding in the amount of ($ amount owing). Original due date of invoice: (Due date of oldest/only invoice) Re: (Outstanding Invoice (s) (invoice numbers)

Default notice letter template