Debt Collection Letter

There are always different situations involved in a business and to collect your due amount from purchasers is one of the most difficult ones. If a company fails to make the required payment on the due date, a Debt Collection Letter is sent to them as a notification to clear the dues.

The first paragraph of the Debt Collection Letter should include the details of the overdue amount. For example, the date to which the payment should have been made and the required amount.

In the second paragraph, notify the customer that the remaining goods, if any, will not be delivered or sent until the final payment is made. In the concluding text, mention a revised plan to the customer in case he is facing any financial difficulty.


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    Sample Debt Collection Letter

    Stanley Warden
    Finance Manager
    Life Group of Companies
    March 20, 2012

    To Whom It May Concern

    This is in reference to the unpaid amount on the purchase of Cooling Equipment from our company. An amount of $6,500 was due on March 18, 2012, and it has not been paid despite our previous reminder. We would certainly appreciate if t he amount is paid as soon as possible.

    I have to inform you with regret that the remaining order of machinery cannot be delivered to your company until the debt amount is cleared. If you have already made a payment, immediately contact us so that the matter can be resolved.

    If you are unable to pay the due amount, kindly inform us so that an alternative arrangement can be sorted out for you. In this way, our company will be able to supply the remaining machinery to you in time.

    Yours sincerely,

    Martin Jackson
    Manager Accounts
    HMV Machinery

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    Template of Debt Collection Letter

    [Creditor’s Name]
    [Creditor’s Title]
    [Company’s Name]

    To Whom It May Concern

    It has come to our notice that you have been unable to pay amount of ................... to our company which was supposed to be credited to our accounts on .................. Despite our previous reminders, there has still been no payment in this regard.

    If your Accounts department has already made the payment, kindly let us know immediately so that the necessary steps are taken. If your company is going through any financial difficulty, let us know so that we can revise a payment plan for you.

    We are hoping for a quick response.

    Yours sincerely,

    [Sender’s Name]
    [Sender’s Title]
    [Company’s Name]

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