How to Write a Business Collections Letter

Business Collection Letters are sent with the purpose of informing other businesses regarding an outstanding payment. The letter serves the purpose of reminding your customers that the amount is still due and also providing them with options on how to make the payment easier.

In the first paragraph, mention the outstanding amount and also the date on which it was due. It should also clearly mention why the amount was due on the customer’s side. The second paragraph and the concluding text should mention any options that your business is willing to give them in case of financial difficulty.

Instructions

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    Sample Business Collection Letter


    Mark Webber
    Finance Manager
    State Corporation Limited
    April 23, 2012

    To Whom It May Concern

    This is in reference to the outstanding payment of $7,200 which was due on April 15. Your company purchased machinery worth the amount from us last month and four instalments were agreed for the payment.

    The first of the four instalments was due on the 15th of this month. Despite our previous reminder, a payment has not been made. We expect the amount to be paid as soon as possible.

    In case your company has made a payment, contact our finance department as soon as possible. If there is a situation where your company is unable to make the payments, inform us so that an alternate arrangement is made for you. We can help you with increasing the number of instalments to make the payment process easier.

    Yours sincerely,
    Henry Walter
    Manager Accounts
    Global Machinery

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    Template of Business Collections Letter


    [Recipient’s Name]
    [Recipient’s Title]
    [Company’s Name]
    [Date]

    To Whom It May Concern

    We are writing this letter in reference to the overdue amount of ................... on your side. The amount was supposed to be paid on .................... as agreed between the two parties after a purchase of .......................... was made on .............................. Our company has been sending you reminders regarding the outstanding payment but there has still been no progress on the issue.

    In case your Account department has made the required payment and it has not reached us, kindly inform us regarding the issue. However, if your company is going through any financial difficulty, kindly let us know so that an appropriate plan is made or the payment plan is revised.

    We are hopeful that you will respond to this letter.

    Yours sincerely,
    [Sender’s Name]
    [Sender’s Title]
    [Company’s Name]

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