Guarantor, Letter trying to Collect From

Date:
Name & Address of party written to
Dear Sir or Madam:
e are t!e !older of your Guaranty of t!e de"ts and o"ligations of #############
$Name of %erson& w!ose de"ts are "eing Guaranteed $'De"tor'& to us in t!e amount of
(#####################, a copy of w!ic! is enclosed)
*!e De"tor !as defaulted in payment to us) +n accordance wit! t!e terms of t!e
Guaranty, we !ere"y demand payment in full of t!e outstanding de"t in t!e amount
(#########################, toget!er wit! interest t!ereon at t!e rate of ###
+nterest as pro,ided for in t!e Agreement, from t!is date forward)
e are sorry t!e matter !as reac!ed t!is stage "ut find no alternati,e since we are
una"le to collect t!ese funds from t!e de"tor) e would "e delig!ted to consider
wor-ing out a payment plan if you, and wit! your persuasi,e powers wit! t!e de"tor,
need to do so separately or toget!er)
%lease note t!at w!ile we would li-e to discuss t!is matter wit! you in dept! we are
o"ligated "y law to inform you any information recei,ed will "e used to collect t!is de"t)
As you undou"tedly -now, t!e attac!ed guarantee pro,ides for our "eing a"le to collect
our legal and collection costs in t!is matter) *!erefore, it is in your interest to pay us
immediately, cause us to "e paid "y t!e original de"tor, or wor- out a solid payment plan
immediately)
%lease contact us immediately to ad,ise us of w!et!er you will pay t!e demand in full or
re.uest anot!er payment plan) +f we do not !ear from you in /0 days, we will "e forced
to place t!is for collection in t!e first of se,eral steps to reduce t!is de"t to a Court
1udgment to "e enforced against t!e original de"tor and yourself)
2ou can reac! us at t!e a"o,e num"er on t!e letter!ead)
2ours ,ery truly,
#############
Aut!ori3ed 4mployee or +ndi,idual
cc 5riginal De"tor or De"tors
Guarantor, *rying to Collect from
6e,iew List
*!is re,iew list is pro,ided to inform you a"out t!is document and assist you in its
preparation) Collecting money is more a sales function t!an anyt!ing else) *!is is
especially true in your first contact wit! t!e 7ot!er side)8 +n t!is case, t!is is t!e first
direct letter to t!e Guarantor, gi,ing t!em t!e "ad news t!at t!ey may !a,e to come
t!roug! and pay t!e de"t for t!e party t!ey guaranteed if for)
Since you only !a,e one c!ance to ma-e a first impression, it is important to use it
wisely !ere) 2ou !a,e su"stantial legal le,erage wit! a guarantee to "ac- up any
t!reats you wis! to ma-e later) 5n your first contact, !owe,er, we strongly recommend
you try to encourage payment as opposed to launc! a !ard"all attac- on t!e ot!er side)
First, t!e Guarantor will "e mad at t!e nonpaying de"tor) 2ou can use t!at to your
ad,antage and encourage t!em to !elp you collect t!e de"t from t!e de"tor so t!ey do
not !a,e to do so)
*!e "est way to ac!ie,e t!is is to get t!is initial letter out early in t!e collection process)
+n ot!er words, get t!e letter out to t!e guarantor "efore t!e de"t is ,ery late and w!ile
small payments can "ring it current and possi"ly get it reinstated, depending on your
circumstances and t!e credit standards of your company, or yourself personally)
Anot!er reason for a more friendly approac! is t!at collection agents and lawyers !a,e
pursued de"ts more ,igorously in t!e last decade t!an e,er "efore, wit! a more ,aried
approac! and wit! !ard"all tactics) De"tors !a,e "een worn down "y t!e process and
are .uic- to see- "an-ruptcy protection, as t!e increasingly caseload s!ows) 2ou don9t
want to dri,e t!em t!ere and you don9t want t!em to "e immediately in t!at total
ad,ersary position wit! you) e recommend you initially try to get t!em "ac- on a
paying "asis)
1. :e sure you include t!e legal warning t!at all information recei,ed will "e used
to collect a de"t) :e sure to orally ad,ise t!em if you spea- wit! t!em)
;) Sign t!e letter and mar- ;/ days off to send a second demand letter $;/ days
pro,ides a little e<tra time for t!e mail and delays&)
3. e recommend t!e person !andling t!e matter sign t!e letter personally and
include a direct p!one line and e<tension as applica"le) *!e personal touc! gets
money in t!e door, in our e<perience, as well as "eing a politer way of operating)