Get Paid With This Business Collection Letter Sample

Ann Marie Smith

Feb 1, 2021

When writing a collection letter, there are three key components:

  1. Tone
  2. Content
  3. Consequences

Each will vary depending on the amount owed, how long the debt is past due, and your prior working relationship.

Tone

You always want to be professional and polite, but you want to remind your client that you expect to get paid. There may be extenuating circumstances for why they have not paid. If so, you want to give them an opportunity to discuss the situation with you and come to an agreement. Getting partial payment or setting up a payment plan is usually preferable to having to send someone to collections. Once that happens, they will rarely do business with you again.

Content

State the nature of the collection letter and the steps to remedy the situation. Keep your letter short and to the point. It does not have to be complicated.

Consequences

In each attempt to collect, you need to let the business know the consequences of not taking action. For example, in the early stages, you might want to let them know that interest will accrue moving forward. In subsequent attempts, let them know you can no longer extend credit and will refer their account to a collection agency.

Collection Letter Sample

When bills go past due, you want to send a sequence of collection letters. Here is a  collection letter template sequence that work. 

Collection Letter Template: First Attempt

[ NAME ]

[ COMPANY ]

[ ADDRESS ]

[ CITY, STATE, ZIP ]

REMINDER: Past Due Payment – Invoice # XX

Dear [ NAME ]:

This is a reminder that payment on your account in the amount of [ AMOUNT ] was due by [ DATE ]. 

Please remit your payment promptly per the terms of your agreement dated [ DATE ] to the address below or through our website at [ WEBSITE ADDRESS ].

If you have already paid, please disregard this letter.

Sincerely, 

[ NAME ]

[ COMPANY ]

[ ADDRESS ]

[ CITY, STATE, ZIP ]

[ PHONE NUMBER ]

NOTE: You should always include a copy of the invoice or statement. A common response to collections attempts is that the invoice was never received or misplaced. 

Collection Letter Template: Second Attempt

[ NAME ]

[ COMPANY ]

[ ADDRESS ]

[ CITY, STATE, ZIP ]

SECOND REMINDER: Past Due Payment – Invoice # XX

Dear [ NAME ]:

This is a second reminder that payment on your account in the amount of [ AMOUNT ] was due by [ DATE ]. 

Please remit your payment promptly per the terms of your agreement dated [ DATE ] to the address below, by calling me at [ PHONE NUMBER ], or through our website at [ WEBSITE ADDRESS ]. 

If there are questions about the attached invoice/statement or concerns that are causing you to delay payment, please contact me immediately so that we can discuss them.

If you have already paid, please disregard this letter.

Sincerely, 

[ NAME ]

[ COMPANY ]

[ ADDRESS ]

[ CITY, STATE, ZIP ]

[ PHONE NUMBER ]

Collection Letter Template: Third Attempt

[ NAME ]

[ COMPANY ]

[ ADDRESS ]

[ CITY, STATE, ZIP ]

DELINQUENT ACCOUNT NOTICE: Past Due Payment – Invoice # XX

Dear [ NAME ]:

This is our third attempt to collect payment on your account in the amount of [ AMOUNT ], which was due by [ DATE ]. 

If you have not already paid, please contact me immediately by phone. If we do not hear from you by [ DATE ], we will have no choice but to refer your account to collections.

At this point, we are no longer able to extend you credit or provide additional services until you fulfill your obligation for the services we have already provided. 

Sincerely, 

[ NAME ]

[ COMPANY ]

[ ADDRESS ]

[ CITY, STATE, ZIP ]

[ PHONE NUMBER ]

You may also want to start adding on late fees, depending on the contractual agreement. 

Collection Letter Template: Final Notice

[ NAME ]

[ COMPANY ]

[ ADDRESS ]

[ CITY, STATE, ZIP ]

FINAL NOTICE: Delinquent Payment – Invoice # XX

Dear [ NAME ]:

Your account is now seriously delinquent. Payment on your account in the amount of [ AMOUNT ] was due by [ DATE ]. We have not received payment nor have you contacted us.

This letter will serve as your final notice. If payment has not been received by [ DATE ], we will turn your account over to a debt collection agency and report your nonpayment to the appropriate credit reporting agencies.

To prevent this from happening, you can make your payment at the address below, by calling me at [ PHONE NUMBER ], or through our website at [ WEBSITE ADDRESS ].

Sincerely, 

[ NAME ]

[ COMPANY ]

[ ADDRESS ]

[ CITY, STATE, ZIP ]

[ PHONE NUMBER ] 

Conclusion

When someone owes you money, use one of these collection letter sample and do not wait to send it off. You want to document it early and keep a copy for yourself. This may help your standing if the company goes into default. You want a record of the debt and your attempts to collect it.

You may also want to pull a business credit report to check on the financial health of businesses that owe your money or to check out new customers before extending credit. This can give you insight into their ability to pay and whether they are staying current with other vendors. You can easily search, select, and get instant access to business credit reports at accredit.com.

View samples of business credit reports and order now.