How to Write Letter

Polite Collection Letter

In today's hard economic times, very few businesses have a decent customer who fulfills their obligations on time. This doesn't mean that they should shun all the business contact with customers not paying on time. Collection of payments is done by writing a collection letters. An effective collection letter has to notify the customer of the late payment without hampering the business relationships.


When writing a collection letter, the correct business letter format has to be used. The letter should introduce you in a polite manner, identify the purpose, and to request some kind of action at the reader's end. It should also provide some suggestion and room for settling the account and a request to contact you if the customers have questions.

A collection letter should be written within a week's time from the past-due date. It should tell the customer the amount of the balance owed and how to pay it. An effective collection letter is a polite, but firm reminder that the payment is overdue, and it also includes instructions on how to pay the debt.

Polite Collection Letter Sample (1)

Albert Prentiss
Head of Collection Department
Good Times Company
325 Privet Avenue
Smithville, New Orleans - 32916

Date: July 10, 2010

Paul Ricardo
Account Manager
XYZ Beauty Products
149 Longend Avenue
Smithville, New Orleans - 79813

Re: Account Number XXXX

Dear Mr. Ricardo,

It was a wonderful movement to get into a business contract with you. We hope you are enjoying your stint doing business with us.

We enjoyed the opportunity to serve you by providing all the packaging materials required for your products and hope to carry on for longer time.

We politely inform you that you have an unpaid balance with us of $7500.00 for the billing period June 1 to June 30, 2010. As this may be due to oversight on your part, we request you to settle your account with us by July 20 thereby maintaining our faith in you.

If you have any question, or need some assistance to settle the account, please contact me on my number. I will be more than happy to be any assistance to you.

Hope to hear soon from you.

Yours faithfully,
(Albert Pretiss)

Polite Collection Letter Sample (2)

Writer's Name
Name of the Company
Street Address
City, State, Zip Code
Contact Number


Reader's Name
Name of the Company
Street Address
City, State, Zip Code

Subject: Reminder of Account Number________.

Dear (name),

How are you doing? It's been a long time since we have seen each other. Hope everything is fine with you.

I was just going through our records and was taken aback to find out that you have an outstanding balance of $XXX.00 with our company. I know, you are a busy person who is constantly out-of-town for business trips. Perhaps, this might have delayed the payment.

If you are back in town, please have a look at the statement of the account and call me if you find any problem with the bill. Otherwise, please send your payment within seven days to our correspondence address. I am enclosing a business reply envelope for your convenience.

Thanking you for your business and wish to bring more for the future.

Yours truly, (Writer's Name)

In business, you have to take a number of decisions. One among them is the decision to maintain the customer and prolong the business relationship. These samples of polite collection letters are one such attempt.

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