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    Parts of Collection Letter

    Uploaded by

    Nora Abu Bakar
    PARTS OF COLLECTION LETTER

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Parts of Collection Letter

    Uploaded by

    Nora Abu Bakar
    2 views7 pages
    PARTS OF COLLECTION LETTER

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    PARTS OF COLLECTION LETTER

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    PARTS OF COLLECTION LETTER

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2 views7 pages

    Parts of Collection Letter

    Uploaded by

    Nora Abu Bakar
    PARTS OF COLLECTION LETTER

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 7

    A collection letter is a formal communication

    used to remind and request payment from a


    client for an overdue invoice. Here is a
    breakdown of its key parts:

    1. Header:
    o Company Letterhead: Includes the
    company’s name, address, phone
    number, email, and logo.
    o Date: The date the letter is written.
    2. Recipient Information:
    o Recipient’s Name and Title: The
    person responsible for accounts
    payable or the appropriate contact
    person.
    o Company Name: The client’s
    company.
    o Address: The client’s company
    address.
    3. Salutation:
    o A polite greeting to address the
    recipient, such as “Dear [Recipient’s
    Name],”.
    4. Subject Line:
    o Purpose of the Letter: A brief and
    clear subject line indicating the letter’s
    purpose, e.g., “Overdue Invoice
    #98765 - Final Reminder”.
    5. Opening Paragraph:
    o Introduction and Context: Briefly
    introduce the purpose of the letter,
    referencing the overdue invoice and its
    date. This sets the context for the
    communication.
    6. Body:
    o Details of the Overdue Invoice:
    Provide specific details such as the
    invoice number, date, amount due,
    and the original due date.
    o Reminder of Previous
    Communications: Mention previous
    reminders sent and emphasize the
    overdue status of the payment.
    o Request for Payment: Politely but
    firmly request immediate payment and
    provide a new deadline for payment to
    avoid further action.
    o Consequences of Non-Payment:
    Clearly state potential actions if
    payment is not received by the new
    deadline (e.g., involvement of
    collections, impact on credit rating).
    7. Conclusion:
    o Offer Assistance: Offer to discuss
    any issues or make alternative
    payment arrangements if there are
    difficulties in making the payment.
    o Contact Information: Provide your
    contact details for any questions or
    further assistance.
    8. Closing:
    o Thank You and Sign-Off: Thank the
    recipient for their attention and include
    a polite closing such as “Sincerely,”
    followed by your name and title.
    9. Enclosures:
    o Additional Documents: Mention any
    enclosed documents, such as a copy of
    the invoice, if applicable.

    Sample Collection Letter:

    CreativePrint
    123 Print Lane
    454500 Kedah

    1 June 2024

    Accounts Payable Manager


    ABC Marketing Agency
    456 Market Street
    253400 Kuantan Pahang

    Dear Ms. Medeeha Ahmad,


    Subject: Overdue Invoice #98765 - Final
    Reminder
    I trust you are having a productive day. I am
    writing to follow up on the outstanding
    balance on your account with CreativePrint.
    According to our records, Invoice #98765,
    dated March 1, 2024, for the total amount of
    $15,500, remains unpaid. The payment was
    due on March 31, 2024, which makes it now
    62 days overdue.
    Despite our previous reminders sent on April
    15, 2024, and May 1, 2024, we have not yet
    received payment. As a valued client, we
    understand that oversights can occur and are
    committed to resolving this matter promptly.
    We kindly request that you remit the full
    payment by June 15, 2024, to avoid any
    disruption in the services we provide to ABC
    Marketing Agency. For your convenience, I
    have attached a copy of the invoice and our
    payment details.
    If you have already sent the payment, please
    disregard this letter. If not, we urge you to
    contact us immediately to discuss any issues
    or to make alternative payment
    arrangements.
    Failure to respond to this notice may result in
    further action, including the involvement of
    our collections department and potential
    reporting to credit agencies, which we would
    prefer to avoid.
    Thank you for your prompt attention to this
    matter. If you have any questions or require
    further assistance, please do not hesitate to
    contact me at (123) 456-7890 or
    [email protected].

    Yours sincerely
    Malik
    Malik Mohd
    Billing Manager
    CreativePrint
    Enclosure: Copy of Invoice #98765

    This breakdown and sample provide a clear


    guide for structuring an effective collection
    letter.

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