Consider offering a discount for early payment on products or services. In this type of letter, you can remind or notify a customer that if you receive payment within a certain period, you will give him or her a discount on the purchase. Be specific about the conditions for the discount.
Gather all the facts about your customer's account, and encourage your customer to pay the money owed. To avoid future misunderstandings, always be specific about how much the customer owes and about when the money was due.
Offer assistance to a customer having difficulty paying an overdue bill. In fact, it is often the only way to collect payment. Use a sincere tone, and gently persuade the customer to contact you to talk about the problem. When discussing new terms, be sure that any new arrangement is one which the customer can handle and which you can feel comfortable about.
Take a firmer stand in your next letter if after writing one or more collection letters you have received no response from the customer (even after suggesting an alternative payment plan or other options). Unlike earlier letters, this one should carry a demanding rather than a requesting tone. Although this letter is less friendly than other letters, it should still make it easy for the customer to respond.
In your final collection letter let the customer know exactly what the penalty will be unless he or she responds immediately with the payment. Don't make an empty threat, and don't send another letter asking for payment. You must be prepared to follow through with your claim.
If you must cancel or withdraw a customer's credit account, explain clearly your reasons for doing so. Be sure to use a courteous tone when writing this letter, as you may want to maintain this customer's business, even if you must ask for cash payments from now on.
One collection letter may not be enough. It may take a series of letters ranging from pleasant to threatening to get paid.
