Collection Skills Training Magazine Section

Collection (Dunning) Letters and Notices

How to write a collection letter - Dunning LetterCollection Letters| © Credit Guru.com

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

A Collection Letter has two main objectives:

  • Get paid
  • Retain customer goodwill

 For the letters to be successful 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 larger degree of diplomacy, or a greater knowledge of human nature and psychology, than does the credit professional.
 

 

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