If you efforts to collect past due invoices using the Past Due Reminder have failed, consider using this Collection Letter. This letter is a final notice and the last direct communication with the client.
If your prior collection efforts fail, you should follow this schedule:
Collection agencies can charge from 25 to 40 percent of the money collected. An Attorney can bring a lawsuit (a collection agency cannot) and hourly fees may be more economical. If the amount due is under a few thousand dollars, small claims court may be a cheap and viable option. Your local court offices will provide information about filing a claim.
Again, be firm, yet fair when collecting payment. It may be wise to be flexible and accept a revised payment schedule, payment plan or other payment scheme.
[YOUR NAME]
[YOUR ADDRESS]
[YOUR TELEPHONE]
[YOUR FAX]
[YOUR EMAIL]
[DATE]
[CLIENT NAME]
[CLIENT TITLE]
[CLIENT COMPANY NAME]
[CLIENT COMPANY ADDRESS]
Re: [PROJECT REFERENCE -- JOB # or CLIENT # --]
-- INSTRUCTION: Use a Project Reference that identifies the project or client. If the client is past due on a single project, reference the project title and job number. If the client is past due on multiple projects reference the clients name and their client number. --
This account is seriously past due. I have repeatedly requested payment. I have not received payment nor have I been provided an explanation.
Payment is due immediately. If payment is not received within [DAYS] days of this notice, I will send this account to collection. This process may result in additional legal and court costs and may damage your credit rating.
It is not too late to contact me.
| Designer Signature | Print Designer Name |
Samus Samuelson
512 Main St.
Brea, CA 99999
Tel: 555-123-7890
Fax: 555-123-7891
email@example.com
August 25, 2012
Beaufort Brimley
Owner
Fancy Meats Co.
123 Fake St.
Orange, CA 99999
Re: Meat Packing Business Website, Job No. 00009
This account is seriously past due. I have repeatedly requested payment. I have not received payment nor have I been provided an explanation.
Payment is due immediately. If payment is not received within ten (10) days of this notice, I will send this account to collection. This process may result in additional legal and court costs and may damage your credit rating.
It is not too late to contact me.
| Designer Signature | Print Designer Name |