Collection letters are beyond the most difficult to
write because it has the risk of destroying the customers goodwill that is painstakingly acquired over months or years of service that is why it must start with a casual reminder of the obligation and processing to a final step, that is, the possibility of a legal action if payment is not made by a definite date.
CREDIT AND COLLECTION (BAF110)
FM-3A Room 82N
Importance of collection letters
The importance of collection letters to any firm which grants credit to its customers may be observed from the fact that the sale never becomes complete until and unless the account is paid. Hence, collection letter form part of the collection machinery of the company.
CREDIT AND COLLECTION (BAF110)
FM-3A Room 82N
Objectives of collection letters
To collect the money due to the company. - find out the reason why the debtor is delinquent in meeting his obligation to pay. To keep and retain the goodwill of the customer. - collection letters should be aimed toward making the debtors find ways and means by which they could restore their feeling of confidence and selfrespect through positive, friendly affirmation, and suggestion of the company. CREDIT AND COLLECTION (BAF110) FM-3A Room 82N
Qualities of a good collection
letter
1. 2. 3. 4. 5. 6. 7. 8.
It should be short and direct.
It should use dated action. It should be writer from the customers viewpoint. It should not provide any cause or occasion to arouse the anger and bitterness of the customer. It should be revised periodically. It should have a humanistic approach. It should follow a definite pattern. It should be written in such way as to make it appear as if it were the last to be sent to the debtor.