What is a Collection Letter? What are the basic  rules and qualities of a Collection Letter?

What is a Collection Letter

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

Read Also   :    What is a Letter of Collection? Also explain what is its Three-Fold Purpose?

What is a Collection Letter

About Muhammad Usman Younas

Hello, I am Muhammad Usman Younas a founder of worldstudypoint.com and some other websites. I have created Study Point Website to promote the Eductaion in All Over the World. And to help the Students in their Studies.

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