The rules have changed, it used to be a 7-day collection letter, you now have to allow at least 14 days notice, if a customer has not paid their account within the credit terms as agreed. Before sending a payment reminder, ensure that you have taken all the steps available in credit control to try and collect the money. It includes telephone calls, sending out customer statements and letters. You should only ever send out one final chase reminder that stipulates the course of action to take if payment is not received within a deadline set out in the letter.
Sending a 14 day letter should always be a last resort. It is worth considering if this is the right course of action, especially if you wish to continue business with this customer.
You also have to be prepared to take legal action if the balance remains unpaid after 14 days. It is a simple process, but it will still take time for the customer to pay you. Debt Collection Agency.
There are debt collection agencies that can send a debt collection letter for you and take legal action. When they collect the money, you will have to pay them a percentage of the amount recovered. It can take all the stress out of chasing clients for money, but you will have less money in the end.
Download our free debt collection letter. By downloading this letter you agree to our licence agreement. Further information on small claims can be found on the money claim online website.
To give yourself a fighting chance make sure you have good, sign off procedures for work completed, or supplies provided. When a client has paid you late, and is not responding to polite requests, you should feel confident to use strong language and the threat of legal action, even if it is not in your experience to do so.
You have a business of your own to run and the very business of chasing debt is taking energy away from that. The letter should be firm, factual, and without recourse to emotion or unnecessary detail.
Just report the important information, how long overdue the debt is, and make it clear what you intend to do if this request is not listened to. Any system of debt collection, including those used by HMRC, works on the basis of strategic escalation.
The idea is to exert increase amounts of pressure, while remaining fair and professional. If a business or private individual owes you money that remains unpaid after several reminders, this letter is an effective method of issuing a final payment demand before you take legal action.
I am writing to you because the payment for invoice no. I have not heard from you regarding the invoice and you have not queried your account, so I can assume the balance is not disputed. Please find a copy of the invoice enclosed. Unless payment is made by [Enter date], I will be left with no option other than to take legal action to recover the money you owe. To prevent legal action, please contact me within 14 days of receiving this letter to discuss paying the amount you owe.
At this point you have no choice but to escalate the situation further if you want to be paid. If you are getting nowhere fast then you may need to escalate matters. Free Sample Late Payment Letter Template If a business or private individual owes you money that remains unpaid after several reminders, this letter is an effective method of issuing a final payment demand before you take legal action.
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Letter from debt collectors. Home Debt Help Letter from debt collectors. Letter from debt collectors This section explains what you should do if you have received a letter from a debt collection agency. I look forward to hearing from you. Need Debt Advice?
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