Management Information

How To Write Commercial Collections Letters


It is sometimes valuable to bring the sales manager into this step of the collection process. Information concerning the delinquency can often be obtained from the sales department.Tips for Commercial Collection Letters:When writing commercial collection letters, these points should be considered:

Include all basic information.

The commercial collections letter should state how and when you expect payment. It should suggest why the account should be paid in full. It should motivate the debtor to actually do this-now.

Use an effective style of writing.

Most commercial collections letters are written to appeal to the writer and not necessarily to the delinquent customer. Appeal to the debtor.

Use the "you" approach.

Too many commercial collection letters emphasize "we." Avoid such phrases as "we insist," "we remind" and "we want." It is much better to put the customer into the letter, saying such things as "you will appreciate" and "it is to your advantage." Remember that the debtor is not interested in your best interest, but in their own.

Don't say, "We will not write again."

This assures the debtor of their success in evading payment, and a phrase such as "to keep your good credit rating" may be impractical in a situation that has reached a certain stage of commercial collection.

Use motivating factors.

If a customer has not paid, there is a reason for it. Although a letter cannot discover the reason, it can give the customer a way in which they will benefit. For example, by paying now, they may continue to enjoy "open account" terms, or your credit rating won't be damaged.

Appeal to pride, honesty and security.

As a last resort, appeal to anxiety. These are factors that can be used to bring prompt payments.

Address the letter to an individual.

Direct it to the person who is authorized to initiate payments. Keep the letter short. Be as brief as possible, and cover only the most important points.

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