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5 Collection Letter Templates – AcriMoney

As a small business owner, you know the importance of billing and collection letters. Not only do they help you keep track of your sales and accounts receivable, but they can also be an effective tool for collecting money owed to you. If he’s looking for fresh ideas to help him write effective collection letters, check out the five collection letter examples in this article. Each one is designed to help you get paid on time, every time. Let’s dive in!

What is a collection letter?

A collection letter is a letter sent by a creditor or collection agency to a debtor, usually after the debtor has missed a payment on a loan or other debt obligation. The purpose of the letter is to remind the debtor of the outstanding debt and to encourage payment.

How to write debt collection letters

Collection agencies and creditors often use standard collection letter templates. While these templates can be helpful, it’s important to understand that every debt situation is unique. As such, you will need to tailor your collection letters to fit the specific circumstances of the debt.

Here are the steps to help you write effective collection letters:

Step 1: Get to the point

When writing a collection letter, it’s important to get to the point. Be clear about what you want and why you are writing. There’s no need to beat around the bush or sugarcoat your message.

Step 2 – Use a polite and professional tone

While it’s important to be direct, you should also use a polite and professional tone. After all, you are trying to collect a debt, not make an enemy.

Step 3: Keep it short and sweet

Your collection letter should be short and sweet. It is not necessary to write a novel. Just state the facts and get to the point.

Step 4: Facilitate payment

Be sure to include clear instructions on how the debtor can make a payment. Include your contact information and any other relevant details.

Step 5: Follow up

If you don’t get paid after you submit your collection letter, don’t be afraid to follow up. It may take a phone call, personal visit, or follow-up letter to get things rolling.

sample collection letter

Let’s say you’re a small business owner and you’ve just sent out your invoices for the month. A few days go by and you don’t receive payment from one of your clients. You give them a call, but there is no answer. What will you do next? Send a collection letter, of course!

Here is the first collection letter template you can use:

My love __________,

I am writing to remind you that your outstanding balance payment of $______ is past due. I strongly recommend that you make the payment as soon as possible to avoid additional charges or penalties.

If you have any questions, please feel free to contact me at ___________.

Thank you for your attention to this matter.


Your name

Most Effective Collection Letter Examples

Using a collection letter template like the one above is a good start, but you’ll need to do more to get results. Let’s take a look at the second sample collection letter that you can use to get paid money owed to you.

Second Collection Letter Template

The first letter can be effective, but you may need to take a more direct approach to get results. This second collection letter template is designed to do just that.

My love __________,

We regret to inform you that you have not made a payment on your outstanding balance of __________ dollars. Please take immediate action to rectify this situation. Continuing to neglect debt payments can result in many legal penalties, including wage garnishment, legal action, and asset seizure.

If you have any questions, please do not hesitate to contact our office.


Your name

Third Collection Letter Template

Let’s take a look at the third collection letter template that can be used as a last resort. This letter should be used when you have been unsuccessful in receiving payments and are looking to make a payment arrangement with your client.

My love __________,

We are sorry to inform you that your account with us remains unpaid. Your current balance is $____________ outstanding.

To date, we have not received payment or heard from you regarding payment arrangements. Please take immediate action to rectify this situation.

If you have any questions, please do not hesitate to contact our offices.

Thank you for your attention to this matter.


Your name

Fourth Collection Letter Template

This collection letter template reflects that the customer hasn’t made any payments for a while, if at all, and the business hasn’t been able to contact them by phone or mail.

My love __________,

We are sorry to inform you that we have not received any payment from you for a while and we have not been able to contact you by phone or mail.

We understand that these are difficult times for everyone, but we must insist on payment of the outstanding balance immediately.

Please contact us as soon as possible to make a payment or to discuss payment arrangements.

Thanks for your understanding.


Your name

Fifth collection card template

This is a collection letter template that mentions that the customer hasn’t made any payments, the business hasn’t been able to contact them by phone or mail, it’s final notice, and legal action can be taken.

My love __________,

Unfortunately, we have not received any payment from you in several months, and our attempts to contact you by phone or mail have been unsuccessful.

We understand that times can be difficult, but we must insist that we receive the outstanding balance of $__,___ immediately.

This is your final notice and we will be forced to take legal action if payment is not received within 7 days.

Thank you for your understanding and attention to this matter.


Your name

Tips for Collection Letters

A debt collection letter can be an effective way to collect money owed to you. But there are a few things to keep in mind to make sure your cards are as effective as possible. Here are six tips for creating a collection letter:

use a template

While you don’t need to use a template, it can be helpful to have a general format to follow. This will ensure that your letters are consistent and professional. A template is also a great tool to get your creativity flowing if you’re having trouble writing your letter on your own.

Include all relevant information

Be sure to include all relevant information in your collection letters, such as the amount due, the date owed, and your contact information. This will give the person you are sending the letter to all the information they need to make a payment.

be clear

As we mentioned before, it’s important to be clear about what you want and why you’re writing. There is no need to beat around the bush. Get to the point and make it clear that you expect to get paid.

Be polite and understanding

Nobody likes to be in debt. Therefore, it is important to be courteous, understanding, and empathetic to your client’s situation. Especially in times like now, when many people are struggling financially due to inflation, high gas prices, and other economic factors.

Be flexible

Remember, each debt situation is unique. So be flexible in your approach and tailor your collection letters to fit specific circumstances. No two letters are exactly the same.

follow the law

Last but not least, be sure to follow all state and federal laws when submitting collection letters. This includes the Fair Debt Collection Practices Act (FDCPA), which regulates the actions of debt collectors.

What do you say in a collection letter?

When a debt is not paid, the creditor can take legal action to recover the money owed. In a collection letter, the creditor usually threatens to take such action if the debt is not paid. This letter may be a scare tactic to entice the debtor to pay, or it may be the first step in taking legal action.

What is a collection letter template?

A collection letter template is a sample letter used by debt collectors to demand payment of a debt. The letter usually includes the amount of the debt, the due date to pay it, and the collector’s contact information. When using a template, be sure to do your due diligence and understand your state’s laws regarding debt collection.

How do you customize a collection letter template?

You can customize a collection letter template by adding your company information and customizing the letter to fit a customer’s individual situation. For example, if the customer has been a good payer in the past but hasn’t made a payment recently, you can include a friendly reminder that the payment is due soon.

Image: Envato Elements

More in: Examples of commercial messages, Operational messages

Aaron Paul
Aaron Paul
Aaron Paul has worked as a finance journalist, editor. He has achieved a Bachelor’s and Masters in broadcast journalism. With his successful working career, he has achieved numerous awards in journalism


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