Debt Collection Letters – Still Proving Effective
Debt Collection Letters Are Still Effective
Ormsby Street recently carried out a survey on debt collection practices and small business finance. Over 30,000 customers replied to various questions and one of the key results was the finding that two thirds of debts chased by a letter of claim, are paid within 7 days. Where no letter is sent, the invoice is typically paid well after a month later.
So it makes sense to send debt collection letters if an invoice goes unpaid. When to send the letter and how to phrase it need to be tailored to your own business. It also depends upon whether you intend to have an ongoing relationship with the customer. If not, you may want to take a much more assertive stance. If there is an ongoing relationship or a desire for there to be one, the letter would be better polite to start with.
If you want guidance on debt collection, please continue reading round our site or take our online courses.