Accounts Correspondence

A correspondence is a written form of

communication. Accounts
correspondence is a written statement
regarding an account, making payments,
or other financial transactions.

Some of them are invoices, delivery

challans, statement of accounts,
credit/debits notes, collection letters.
Collection Letter
A collection letter is a written notification
to inform a consumer of his due
payments.

It is an official message to a borrower.

A collection letter may include reminders,

inquiries, warnings or notification of
possible legal actions.
Although a collection letter is a firm
notice to a borrower, it must be written in
a polite way. One should not use slang,
offensive, and abusive words.
Characteristics of Collection Letter
 The reason or the objective of writing a
collection letter.
 Reference of the previous letters (if
any).
 Name of the creditor or the company
issuing loans.
 Name of the lender.
 Full debt amount.
 Additional costs or terms.
 Last deadline for the payment of the
debt.
 Inquiry about the delay.
 In the case of many reminders, one
should include a list of possible legal
actions in the letter.

Types of Collection Letter

A collection letter is broadly classified
into three categories. They are

1. General Reminders.
2. Inquiry letters.
3. Official collections letters.

Reminder Collection Letter

It is written with an assumption that
customer forgets to make the payment.
General assumptions like money
problems or medical issues are made.
Always use a friendly manner to write it.

Inquiry Collection Letter

As the name suggests, the main purpose
of this type of letter is to make an inquiry.
The writer wants to inquire about the
reasons for the delay of the payments.

Here, the writer asks for the keenness to

help the customer.
One can give the choice of partial
payments here. It helps to maintain a
good relationship with the customer.

Appeal collection Letter

A writer writes this letter when the
borrower is not responding to any of the
previous remainders.

Here, the writer uses an aggressive

approach without being rude. One needs
to maintain fairness.
Ultimatum Collection Letter
Here the writer mentions the action which
can be taken in case of failure of payment
of the loan. One uses the logical and fair
statements.
Various punishments like debarring from
further business, legal actions are stated
in this letter.
Sample Collection Letter
January 8, 2018

Franks Plumbing
123 Main Street
Anywhere, NH 05000

Account# or Invoice #:123

Balance due or Past Due Balance: $100.00

Dear Jim,
This is a reminder that your account
balance of $100.00 was overdue as of
November 28, 2008.
Please pay this amount today, I have
enclosed a stamped payment envelope for
your convenience.
Thank you for your payment.
Sincerely,
Frank Smith
Franks Plumbing

Collection Letter Tips

Your collection letter should:
 Tell the reason for your letter in the first
sentence
 Explain more about the first sentence in
your second sentence
 Suggest a solution
 Thank the recipient
Enclosing an envelope for payment is also
a good idea. If you can include postage on
the payment envelope, that is better. The
easier you make it for the customer to make
the payment, the better your chances are of
getting paid.