Letter to collect 2024 (guide & free samples)

This post covers letter to collect.

Collecting something from someone should not be a hassle- make calls, send emails, past-due notices, etc.

However, a well-written collection letter/letter to collect can effectively help you obtain anything you want from anyone on time.

The issue is that writing a strong letter to collect is a huge responsibility, and writing g a dumb boring letter will not be fruitful. You really need a detailed guide for that.

The bad news is many business owners have no idea how to write an effective collection letter or have a sample to refer to.

That’s I’m writing this post to guide you through everything you need to know about letters to collect, specifically, I will cover

• what is a letter to collect
• why is it necessary
• when do you need it
• How do you write an effective letter to collect a debt, payment, etc?
• templates and varieties of samples of letters to collect
• etc.

Are you ready?

Let’s get started

What is a letter to collect?

A letter to collect is a brief statement of facts written by an individual or a company to request a specific action from the recipient, it may be to request payment of a debt, request payment of invoices, request collection of documents, etc.

For example

• you can send a letter to collect to the non-paying customer as soon as the invoice has gone past due.
•  A collection letter can also be used to notify a company that you are awaiting a refund for an unacceptable product.
• etc.

Why do you need a letter to collect?

A collection letter serves as a fair notification to the recipient that he needs to take some action.

Therefore a well-written letter to collect will help you

• Maintain a good relationship with the customers in case of businesses
• Get paid on time
• Comply with debt collection laws-15 U.S. Code § 1692g
• Serve as evidence in case the matter goes to court.
• Kickstart the payment negotiation and create a solution that favors both of you.

When do you need a letter to collect?

In business, the collection begins when you send the invoice, which should include a payment due date. When that deadline has passed, it’s time to consider sending a collection letter. Don’t put it off any longer.

It is preferable to send a reminder notice as soon as possible rather than later.

Keep in mind that this is money owed to you. The longer you wait to collect it, the greater the strain on your business.

If the first collection letter fails, several collection letters may be sent before legal action is taken.

How to write a letter  to collect

A collection letter is written in a business letter format. Begin your letter with your address and contact information, followed by a date and the recipient’s address, and state that you are writing to collect debt/payment. provide more details about your concern. Finish with “Sincerely,” followed by your name and signature.

REMEMBER! The primary goal of a collection letter is to collect money from debtors.

Thus, Do the following to write an effective collection letter.

• Use company header
• Include your name and contact information
• Include the date of the letter
• Include the recipient’s address
• Clearly state the invoice number, invoice date,  days past due and amount to be paid
• Mention the products or services for which the payment is due.
• Indicate the mode and time (deadline) of payment.
• Attach necessary documents for easy reference
• If it is not your first letter explain what will happens in case the recipient will fail to comply with your letter.
• Be straightforward
• Maintain a professional tone
• Be honest

other useful tips

• Send your letter certified mail with a return receipt requested so you know when and if the creditor receives it.
• Keep a copy.

NB: The most effective collection letters are brief, to the point, and easy to read. Try to avoid using long or confusing words and sentences. The more direct letter results in fewer misunderstandings.

Letter to collect template

Your Name
Company name
Company Address
City, State, Zip Code
phone
email

DATE

[Recipient’s Name]
[Recipient’s Street Address]
[Recipient’s City, State, and Zip Code]

RE: Payment Request, Invoice No. [Invoice Number] of [Invoice date]

Dear [Recipient’s Last Name]

According to our records, your account balance of [insert amount due] for [details of transaction] became past due on [the due date].

I’ve attached a copy of the invoice for your convenience.

Please pay the overdue balance as soon as possible. If you have any questions, please contact me at [phone number] or [e-mail address] as soon as possible.

Thank you for paying on time. We hope to continue doing business with you.

Sincerely,

[Your Signature]

[Your Name}]

Attached: Invoice [Invoice Number]

Letter to collect payment

COMPANY HEADER

DATE

Harris Kennedy
107, East estate
Downtown, CA 14234

RE: Payment Request, Invoice No.73456586 of July 20, 20…Amount Due $137.98

Dear Mr. Kennedy

This is to remind you that your invoice balance of $137.98 for the IT services provided on July 01, 20… was overdue as of July 28, 20…

Please pay the overdue balance today.

If you have any questions, please contact me at 555-153-7565 or sender@email.com.

Thank you for your prompt payment. We hope to do business with you in the future.

Sincerely

Joe Kim
Senior Accountant
ABC Technologies

Lawyer letter to collect a debt

James Raymond
ABC Attorneys
123 Clean Street
Eastcoast, TX, 65766

July 14, 20…

Daniel Parker
456 Last Street,
Eastcoast, TX, 65764

Dear Mr.Parker,

I’m writing to inform you that your $1,500 balance for invoice 65565 for legal representation on your insurance settlement claim, which was completed on May 20, 20.. was due on June 1, 2022, and is now 43 days late.

Please keep in mind that, according to our engagement letter, any balances not paid within 30 days of the invoice date will be subject to a 1% monthly interest charge.

As a result, your total current balance due is $1,525 ($1,500 plus $25 for one month of 1% interest). I’d appreciate it if you could respond to this letter and send your payment by July 31, 20…

If paying this outstanding balance or paying it in full at this time is difficult, please contact me to discuss an alternative payment arrangement.

Please be aware that if I do not receive a response or payment by July 31, 20., I may choose to pursue this overdue payment through other legal means.

Thanks for your understanding on this matter.

Sincerely

James Raymond,
Operation lead
ABC Attorneys

Enclosed: A copy of invoice # 65565 and a copy of your signed engagement letter.