Sample Collection Letters

Collection Letter Templates

Personal visits, telephone calls and letters are the three most common collection approaches that small business owners use to collect past due accounts. Since many small business owners simply don't have the time or opportunity for personal visits or telephone calls, a letter is often the method of choice.

The attached file below contains three sample collection letters, each designed with a different purpose. Each succeeding letter is slightly more strongly worded than the previous one — ranging from a friendly reminder to notification that you are turning over the matter to a lawyer or collection agency. You can easily modify any of these letters to fit your situation or your personal style.

  • All the letters can be quickly customized to fit your needs.
  • You can choose to send one, or all three, of the letters to a particular customer or client, depending on the circumstances and the client's payment history with your business.
  • All three letters follow the basic rule of a "good" collection letter: each is brief and succinct. Long rambling letters that insult the customer for not paying and that recite all the hardships nonpayment has caused are much more likely to be ignored or to be thrown away unread.

Sample Collection Letters

[Debtor’s name]
[Street address]
[City, state ZIP]

[Month day, year]

Re: [Account balance]
      [Account number]

Dear [debtor]:

Here’s a reminder that your account of $________ was overdue as of _____________, ____.  Please pay this account promptly.  If you have already put the check in the mail, we apologize for the inconvenience and thank you for your payment.                                                      

                                                    Sincerely,

[Debtor’s name]
[Street address]
[City, state ZIP]

[Month day, year]

Re: [account balance]
       [account number]

Dear [debtor]:

This is the second reminder that you owe us $­­­­­­­­­­­­­_________.  Please pay this account promptly.  We would like to continue doing business with you, but we need your cooperation and payment to do so. 

Thank you for your prompt attention to this matter.

                                          Sincerely,

[Debtor’s name]
[Street address]
[City, state ZIP]

[Month day, year]

 Re: [account balance]
         [account number]

Dear [debtor]:

This is your final reminder that your account of $__________ is past due.  It has been past due since ___________,____.  If payment is not received by ______,____, we will have no alternative but to turn your account over to a [lawyer or collection agency] for collection.

Thank you for your prompt attention to this matter.                                   

                                            Sincerely,

All content provided herein is for educational purposes only. It is provided “as is” and neither the author, publisher nor Triad Digital Media, LLC d/b/a Triad Retail Media warrant the accuracy of the information provided, nor do they assume any responsibility for errors, omissions or contrary interpretation of the subject matter herein.

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