Collection Letter Samples & Templates You Can Steal

writing-letter

As an accounts receivable or credit manager, you barely have time to run reports, make phone calls, and send the email messages necessary to follow up with customers and get invoices paid.  That’s where having a library of collection letter samples and templates can be a real time-saver. In this article, we provide effective and ready-to-use collection letter templates that you can “steal” to save some time and get those invoices paid as soon as possible.

As the developers of Collect-IT – popular accounts receivable management and collections software – the team here at Dynavistics constructed these letter samples and templates over decades of developing software and building collections workflow into our platform based on customer feedback.

So with no further ado …

The First Collection Letter Template (Past-Due Notice)

But before you write-up and send the first collection letter, it’s important to keep in mind that at this point the invoice is still barely past due. It could be that the customer simply forgot to pay (based on previous email reminders) or someone in their accounting department was out sick or on vacation.

Whatever the case, it’s important that the tone of your letter or email matches the situation in which the invoice has gone just a little bit past due.  For now, keep it somewhat light and focused primarily on reminding the customer that the invoice is due and include the following elements:

  • Clearly sate the number of days and the amount that’s past due
  • Note previous attempts to collect
  • Provide a copy of the invoice with the communication
  • Provide payment options and what you’d like the customer to do next
  • Provide your contact information

💡 Want to see a sample? Click to see a sample of the first collection letter

The Second Collection Letter (30 Days Past-Due)

If you’re thinking about how to write a second collection letter, chances are the invoice is still outstanding and your customer has not responded to the first collection letter (above) or the courtesy reminder emails you sent before the due date.

To this point, the communication has been somewhat light because the invoice was either not yet due or barely past due. However now that the invoice is 30 days overdue, the tone of the second collection letter should be a bit more assertive and direct, but should always remain professional.

With that in mind, here are elements to consider when developing a second collection letter template:

  • Details including invoice number, letter date, and amount
  • Clearly state that the invoice is past due along with original invoice date
  • Provide payment options and desired next steps
  • Your contact information and request to contact you

💡 Want to see a sample? Click to see a sample of the second collection letter

The Third Collection Letter (60 Days Past-Due)

If you’re now thinking about how to write the third collection letter, chances are the invoice is now about 60 days past-due and your odds of collecting payment is getting worse by the day. Things have gone beyond a point where someone in accounting was on vacation or the customer simply forgot to pay.

For many, the third collection letter is your last formal written communication before sending a final demand letter. The tone is even more assertive and direct than the second letter and should include the actions you plan to take if payment is not received such as placing the customer on credit hold and/or involving a collections agency or lawyer.

With that in mind, here are elements to consider when developing a third collection letter template:

  • Details including invoice number, date, and amount
  • Mention of previous attempts to collect
  • Clearly state that the invoice is past due
  • A warning and specific actions you plan to take if payment is not received within a specified number of days
  • Provide payment options and desired next steps
  • Your contact information and final request to contact you

💡 Want to see a sample? Click to see a sample of the third collection letter


Want More Tips, Templates and Guidance Like This?

Click below to download our Ultimate Guide to AR Collections where you'll find 27 pages of expert advice, best practices, industry benchmarks, and loads of letter templates and call scripts.

AR Collections eBook Graphic

You may also like

Collection Call Scripts & Examples ...
on May 5, 2020
business software

If you’ve got overdue invoices and wondering how to make a collection call or what to say when your ...

commentIcon 0 Comments
Staff Author
Collection Letter Samples & ...
on April 21, 2020
business software

As an accounts receivable or credit manager, you barely have time to run reports, make phone calls, ...

commentIcon 0 Comments
Staff Author
Why Involve Your Whole ...
on March 17, 2020
business software

When you think about accounts receivable collections and overdue invoices, most people assume it’s ...

commentIcon 0 Comments
Staff Author
10 Best Practices That Improve ...
on March 3, 2020
business software

Every business has customers with a history of paying late. But if you’ve been in business long ...

commentIcon 0 Comments
Staff Author
What a Great A/R Approach Looks ...
on February 18, 2020
business software

Just like anything else in business, your accounts receivable process should be planned out, ...

commentIcon 0 Comments
Staff Author
Why You Should Use Templates for ...
on February 11, 2020
business software

When it comes to managing accounts receivable, asking for money is never easy – especially in ...

commentIcon 0 Comments
Staff Author