Getting customers to pay on time is like pulling teeth. When people say they have a process to make collections as easy as ABC, their explanation is about as clear as mud. It seems like their is no REAL solution and the later they pay, the more that they don’t, you find yourself getting mad as hornet… Figures of speech aside, doesn’t it seem like people are talking in abstracts when they’re trying to tell you how to get paid faster? The truth is, though, it’s plain and simple. There is no secret sauce that will get you paid on time. The solution is about running the most precise, well-managed and thoughtful collections process you can. The steps aren’t challenging: they’re particular. Every communication you have with a customer (and how much communication with the customer) matters. That’s why here at Funding Gates, we’ve premiered a series of tools to help you get on top of your receivables management. These resources are aimed to perfect each step of the collections process to get your customers paying on time and allowing you to avoid the collection agency. So, where do you begin? As mentioned, communication is key in debt collection. Therefore, when making contact with a customer about payment reminder, it’s important that your collection letter is top-notch. Check out the collection letter template list below to help you frame this crucial communication and decide which letter is best for you given each unique customer situation.
Collection Letter Template: Figures of Speech to Get You Paid on Time
1) Friendly Collection Letter Template – For those customers who are always loyal and who you know for almost certain that their late payment is simply a mishap, make sure your collection letter has a friendly tone, being cautious nothing appears too accusatory. Show you are understanding and be precise. Simple is best in this approach. For a reference, check out our friendly collection letter template.
2) Formal Collection Letter Template – For other customers, a more formal approach is necessary but you aren’t quite ready to get too harsh. This might be for a customer who always pays but is also always a bit late. It also works well for customers you are still getting to know. Check out our formal collection letter template here.
3) Harsh Collection Letter Template – For those customers who just don’t seem to be responding to your payment letters and you aren’t quite sure what is going on, you’ve got to change your approach and really let them know you mean business. You must make it clear that you are going to take action in regards to their late payment. What do we mean? For an example, check out our harsh collection letter template.
4) Severe Collection Letter Template – Lastly, there are those customers who just seem impossible. You’ve tried and tried to contact them but hear nothing back. Let this final reminder let them know it is necessary to pay, otherwise you will take immediate (and multiple) actions. This letter lets customers truly see the consequences of their late paying actions. Check out our severe collection letter template here.
Make sure to check out all our demand letters to help you start taking control of your account receivables management today.