If you own a business and you extend credit you will need collection or dunning letters. You can purchase books that have sample letters, ask a fellow business owner if you can copy their letters or create your own.
If you decide to create your own keep this in mind:
Your letter should:
1. Tell the reason for your letter in the first sentence.
2. Explain more about the first sentence in your second sentence.
3. Suggest a solution.
4. Thank the recipient.
The most effective letters are short, to the point and easy to read. Try to avoid long or confusing words and sentences. The more direct, the fewer misunderstandings.
Have someone read your letter and see if they totally understand it. If they do, then chances are your customer will, too. Your letter is a reflection of your business; keep it professional. Remember that your letter is to persuade someone to send you money. Your wording and tone are critical, especially if this is a customer you want to continue to do business with.
Always assume the debtor will pay. Enclosing an envelope for payment is always a good idea. You can also include an envelope with postage. The easier you make it for the customer to make payment, the better your chances are of receiving that payment.
Collection letters should do two things: retain customer good will and help you get paid. You know a letter works well when you do a mailing and your phone rings off the hook when everyone receives their letters. If you send out a letter and there is no response, you need to re-work your letter.
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