Collection (Dunning) Letters and Notices

 

Collection Letters| © Credit Guru.com

Dunning Letters Collection Correspondence

 

Collection Letter, also called Dunning Letter, is a good collection tool for an accounts receivable person.

A Collection Letter has two main objectives:

  1. Get paid
  2. Retain customer goodwill

 For the letters to be effective, consider the following:

01. Style

• Keep the letter to one page

• Be brief, with short sentences, paragraphs and simple words

• Customize the letter

02. Opening and Closing

• Use Dear Customer (Mr./Ms./Mrs. (last name))

• Sign the letter personally

• Keep a non-threatening tone.

03. Body

• Date(s) of Invoice(s)

• Total amount due

• Request for Full Payment immediately or by a certain date

• Reference your numbers

• Request for sending the payment by courier or EFT.

• Convey urgency

04. Tone

Be:

• Firm 

• Urgent  and

• Unapologetic

 

No business correspondent requires a greater degree of diplomacy, or a greater knowledge of human nature and psychology, than does the credit professional.