1. Introduction: there is a great importance of collection letters in commercial correspondance. If care is not taken while writing such letters then, the seller can loose money as well as customer. If correct language is used while writing collection letters there are great chances to recover the dues from the customer respectfully. It will also help to maintained good business relation with the customer.
No Person likes that anybody should write to him for collection of dues, but on other hand if collection is not undertaken then it would affect business negatively and also would have finacial crunch, and as a last resort the businessman might have to close down the business, so collection letters should be written with great care.
2. What are Collection letters ? The letters written by the seller to the buyer of goods, who has bought goods on credit, to collect the due ammount of sale are known as collection letters.
This letters are also known as “Dunning Letters”. This means to remaind continously for collection of dues and request the buyer to pay the due amount.
3. Point to be kept in mind while writing Collection letters : They are as below.
(1) Positive Attitude: The letter of collection should be positive, hopeful and free from prejudice. Customer will make timely payment, hope should be reflectd in the letter.
(2) Mention of credit period : Attention should be drawn on the time period for which goods were given on credit and mention should also be made about the period getting over.
(3) Informing Business terms and conditions : Generally seller metions business terms and conditions on the bill it self. If money is not paid timely, interest will be charged theron is also mentioned. Attention should be drown to these terms of business.
(4) Mention Bill date and Amount of Bifi: In all collection letters, the bill number and date should be mentioned and the amount due should also be mentioned in all the correspondence.
(5) Appreciate customer: Before mentioning dues the customer should be appreciated for timely payment in the past. We should also mention to get co- opretion from the customer as received in the past and should be hopeful.
(6) To Request : The collection letter should have a request from seller to buyer, to make the payment at the earliest. Many times seller gives additional time period for making the payment.
(7) You Attitude : Collection letter should be written keeping “you attitude” in mind and letter should be written in such a way that makes buyer feel that making timely payment is benificial to him only.
(8) Inform throught other means of communication: Customer should be informed by telephone, Telex, Fax, E-mail etc. for timely payment.
(9) Second collection letter should be written in firm language: If the customer does not pay dues even after the additional credit period, the collection letter should be written in a firm language. Courtesy should still be maintained in such letters.
(1O)To Give Warning : If customer does not clear dues even after 2-3 reminder collection letters then he should be warned that you are left with no option but to undertake legal action against them. At this stage also you should be hopeful and mention that if payment is made now also then it wil help to maintain business relations.
4. Conclusion: Collection letters are written to customers to collect the due amount from them. It helps to maintain business relations and collect dues at the same time.