Collection Letter

What is an collection letter, parts and example

1. Kata Angelica T. Aniel Katrina P. Sto Domingo POLYTECHNIC UNIVERSITY OF THE PHILIPPINES COLLEGE OF TOURISM, HOSPITALITY AND TRANSPORTATION MANAGEMENT SY. 2016 – 2017 COLLECTION LETTER

2. A Collection Letter is a step in the credit process. It’s purpose is to collect payments from debtors who forget , overlook or ignore their accounts . The credit – collection manager must employ the “you” attitude in writing the collection letter to avoid offending debtors.

3. To attain success in the collection process, follow these steps: 3. If the persuasive letter does not produce desirable results, send letters that appeal to the sense of self-interest, fairness, and self-respect. 2. If the gentle reminder fails to elicit a favorable response, send them a persuasive letter that reprimands them for the delay of payment. 1. Remind the debtors of their overdue accounts mildly by sending them “impersonal and gentle” reminders that are not offensive.

4. Dear Mr. Sanchez: Because we are interested in our customers, we always try to find new ways to improve our service. Hence, we would like to know the reason for the delay in the payment of your long overdue account. If we can help make your payment easier through extending the term of payment or recommending a company loan, please let us know. We would appreciate a word from you, if not your check. Sincerely, Lucy T. Estacio Example of a Collection Letter The first part is a gentle and impersonal reminder for payment. The second part is an offer to help ease the difficulty of payment of the overdue account. The third part, besides expressing a word of appreciation despite the debtor’s default, makes clear the action desired.

5. 1 . Collection letter is a step in what? 2-4. collection letters are for customers who _______, _______, and _______ their accounts. 5. What is the proper tone to be applied when collecting a letter? CHECKPOINT

6. Reference: Language at Work: A Guide for Effective Business Writing