What is a Collection Letter? What are the basic rules and qualities of a Collection Letter?
Letter of Collection
A letter, which is written to customer to collect overdue amount is called collection
letter or dunning letter.
Qualities of a Collection Letter
Following are the basic qualities and rules of writing collection letter:
1) Positive Attitude
Always adopt positive attitude while writing a collection letter. Trust the customer and assume that he will clear his outstanding amount very soon. Keep your customer in a friendly frame of mind.
2) Don’t be Apologetic
The writer of a collection letter must not start begging. He has right to demand his overdue amount. A letter must not be apologetic. Plain and straight forward request wins the heart of the customer and collect the money easily.
3) Use Courtesy
A collection letter is always friendly. It should be courteous in tone, cordial in expression, and gentle in style. Don’t annoy the customer with insulting remarks. Always use polite and soft words while writing a collection letter. Use 3-F in collection letter which means to be Fair, Firm and Friendly.
4) Offer Opportunity
Give some opportunity to the defaulting customer so that he may clear his outstanding balance. Give sufficient time to your defaulting customer so that he can arrange money easily to clear his dues.
5) Don’t Create Doubts
Don’t create doubts in the mind of the reader. If the defaulting customer is ready to pay, necessary arrangements should be made to solve his financial problem.
6) Avoid Threats
A threatening attitude or harsh words can make the money collecting procedure very difficult. Sometimes it makes the collection of money impossible. Therefore, one should try to avoid threats.
Collection letters are important part of business correspondence. They should be wisely planned, properly handled, and gently written. Truly speaking, a good collection message increases profit, retains the customers, and brightens the fair name of a company