Debt Collection Letter templates

Business debts are an irritating occurrence that all business owners may encounter for payments due after completing the service. Late payments, or customers who seemingly drop off from the face of the earth when payment is due, can cause you stress and puts pressure on you to take action.

While it may feel satisfactory to send the debtor a strongly worded letter, we advise against doing this, and instead, start acting immediately to ensure that you’re able to legally recover the debt owing to you.

You must follow the correct processes and procedures for collecting any unpaid amounts that customers owe to you. Any letters of demand must specify the amount owed, the date it was due, whether any interest is applicable, and the final date for late payments before you take legal action.

Dear [Customer Name],

We are getting in touch to remind you of your overdue account.

You requested from us, and we provided [Description of Services] on [Date of Completion].

We have noticed that payment for Invoice [Invoice Number] is now [Number of Days] days overdue.

We kindly request that you settle the outstanding balance of [Outstanding Balance] as soon as possible, per our agreement. For your convenience, I have attached our contract. You accepted these terms and conditions by accepting our services. We have upheld our duty to provide services to you, and you must now fulfil your obligation to make due payment.

Per our Terms of Agreement, all late payments are charged 2.5% interest per day on the balance until they are paid in full.

If you have any questions or concerns, please do not hesitate to contact us.

Thank you for your prompt attention to this matter.

Sincerely,

Dear [Customer Name],

We regret to inform you that payment for Invoice [Invoice Number] is now overdue by [Number of Days]. Despite previous reminders, we have yet to receive payment for this outstanding invoice, plus the interest owing which is calculated at 2.5% per day on the balance.

We would like to remind you that failure to pay this debt may result in legal action being taken against you. We strongly urge you to settle this amount as soon as possible to avoid any further complications.

We are willing to work out a payment plan that fits your financial situation to assist you in settling this debt. Please get in touch with us immediately to discuss this option.

You should take this matter seriously and prioritise payment for this outstanding debt. We hope to resolve this matter amicably and promptly.

Sincerely,

Dear [Customer Name]

We have been in contact with you regarding the unpaid balance of [Amount Owed] for Invoice [Invoice Number] from [Date of Invoice]. Despite our repeated efforts to resolve this matter, the balance remains unpaid.

We understand that circumstances may have arisen that prevent you from paying the outstanding balance. If this is the case, we encourage you to contact us immediately to discuss a possible payment plan that works for both parties.

However, if we do not hear back from you within the next 14 days, we will have no choice but to escalate this matter to our legal team. This will result in additional costs which will be billed to you, including legal fees, collection fees and court fees which we would prefer to avoid.

We value our business relationship with you and hope to resolve this matter soon. Please contact us at [Phone Number] or [Email Address] to discuss your payment options.

Sincerely,

Dear [Customer Name]

This is the final notice regarding the outstanding balance of [Amount Owed] for Invoice [Invoice Number]. Despite our previous attempts to resolve this matter, the balance remains unpaid.

As a reminder, failure to pay the outstanding balance of [Amount Owed] within the next 7 days will result in the escalation of this matter to our legal team. If we must escalate your debt, this will result in additional fees and charges, which we would prefer to avoid.

We value your business and hope to resolve this matter without any further action being taken. Please contact us immediately at [Phone Number] or [Email Address] to discuss your payment options.

Sincerely,