Sample Demand Letter

In our daily business life, businessmen have to write many letters. In the list of those letters there are numerous letters to debtors asking them for the payments. When you are writing to debtors, you need to consider many important points as they are the people who are your clients.
Some sample demand or collection letters are also given below that will help you in customizing a demand or collection letter according to your need. Important tips to write a demand or collection letter are following;

  • Determine the tone of letter first of all.
  • Consider that the recipient is your client so you need to keep as friendly tone as possible.
  • Your tone will depend upon the progress of the case for which you are writing the letter.

In first stage, when you are sending your first or second letter, you need to just remind your recipient about the payment. As a gesture of goodwill, you can include some statements to show an old business relation with the recipient.

  • If your debtor does not respond you after one or two letters, you need to write third letter with some different approach. Ask your recipient about the reason why he is not able to pay his dues. Ask him or her gently about the situation. Do not threaten him or her at this stage but tell him or her that if you will not respond, we shall have to terminate the relationship with you.
  • In third stage, if debtor still does not respond, you need to write letter with clear intention of bringing your debtor in the court.
  • Third stage letter should be written in harsh manner making the recipient realize about the claim.
  • Mention that in court, he or she will not only have to pay the dues with interest but also all the charges of litigation.
  • In the end, your ending should again be positive stating that you can maintain good relation with the debtor now as well if he or makes all the payment promptly.
  • Attach all the photocopies of the invoices along with the letter.
  • Tell your debtor how much amount in total he or she has to pay now.
  • Write your name, address, postal code, phone number in the start.
  • Mention the date on which letter will be submitted to concerned person
  • Address the letter to the recipient by writing “Dear Sir / Madam”
  • Purpose of the letter should be mentioned clearly.
  • At the end mention your name.
  • Make the ending strong
  • Type your letter and print it on quality paper, but also include a handwritten signature.
  • Proofread your letter at least once.
  • Be sure you have spelled everything correctly.
  • Have you checked your letter for grammatical mistakes?
  • Break down any contractions (e.g. “I’ve” to “I have”).
  • Avoid colloquial writing. You want to sound professional, objective, and educated.
  • Check the punctuation use carefully.

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Here are some Sample Demand Letter,

Sample Demand / Collection Letter

Your Name:
Address:
City:
Phone Number:
Postal Code:
Email Address:

Date:

Name of Recipient:
Address:

Name of Organization:

City:
Phone Number:

Dear Sir/ Madam,

How can we try to persuade you to pay your delinquent account?

We have tried many suggestions for extending the payment period, for making the monthly payments smaller, for getting help from lenders, and for at least discussing this matter with us. Now we have exhausted our own resources.

We have to seek help from outside our own company. We have consulted with our collection agency and they told us that we have several avenues available to us for collecting our money. We are very uncomfortable with the thought of going to court and, therefore, hope you resolve this outstanding balance today.

To avoid legal action, we must have your check for ____ (amount of money) on or before ____, 20__ (date).

Yours sincerely, / faithfully

Name

Signature

Sample Demand / Collection Letter

Your Name:
Address:
City:
Phone Number:
Postal Code:
Email Address:

Date:

Name of Recipient:
Address:

Name of Organization:

City:
Phone Number:

Dear Sir/ Madam,

____ (time period), just ____ (time period) is the time our legal department tells us we should extend your open account. After that time — ____ (date) — our collection agency will have to take action to collect the balance on your overdue account.

We have repeatedly written and phone your office asking for payment. We know that you understand, as a businessperson, that we can no longer be sympathetic. We do expect your cooperation.

We expect a payment from you on or before _____ (date).

Yours sincerely, / faithfully

Name

Signature

Sample Demand / Collection Letter

Your Name:
Address:
City:
Phone Number:
Postal Code:
Email Address:

Date:

Name of Recipient:
Address:

Name of Organization:

City:
Phone Number:

Dear Sir/ Madam,

After months of futile attempts at collecting payment from ACME Inc., Firm Design is giving final notice before we commence legal proceedings.

You have until Friday of next week to make full payment. If payment is not made by noon central time (1 p.m. eastern time) on Friday, February 2, 2007, we will commence legal proceedings.

It is our legal counsel’s strong opinion that you have breached our contract and will be held liable by the Illinois civil courts for the full amount owed plus late fees, as outlined in the contract. The work was done to the satisfaction of Karen Client and Bob Manager, who had apparent authority over the project; both of them are willing to testify on our behalf. Moreover, you will likely be held liable for all attorney fees because we will assert in our filing that you have engaged in a pattern of fraudulent behavior, in which you enter contracts with vendors, accept delivery of services and then refuse to pay.

As is our right, we intend to make our legal proceedings known to key entities, including the media in Townville and the surrounding area. This media outreach will be limited to statements of fact. I am still discussing with my counsel whether we can also distribute this information to the Gold Partner organization and to financial institutions that may have a vested interest in assessing the impact of such information. As a PR firm, I assure you we are very good at spreading the word about such things but at no point will we engage in libelous behavior.

It is also our assertion that you do not have any rights to the work that we completed on your behalf until we receive full payment. This would include the ACME Inc. logo, the use of the AcmeMadeUpNameInc.com domain, lead information that came via the site, and all other work that was done by Firm Design during this engagement.

Given that we have no use for the AcmeMadeUpNameInc.com website, we assert the right to take the site down, use it for other purposes, or sell it to the highest bidder to recover the substantial service fees we lost on this project. We are under no obligation to give you any notice on this action – the domain name and the site content belong to us.

We are in touch with Big Time Printers and others who have been adversely affected by your predatory business behavior. There is an ongoing discussion amongst the parties about filing a petition for involuntary bankruptcy. I can also tell you that service on this suit will be wide-ranging because of the ambiguity as to your legal formation and who the member partners are – for example, we are unclear as to whether Arnold Gold is an equity-holding member of the group or not. We (and Big Time Printers in a separately filed lawsuit) intend to serve anyone who we believe may be an equity holder in the group or who may have benefited from the group’s actions by receiving promises of equity or property.

All invoices, including finance charge invoices, are attached. Payment is to be made in FULL, in the amount of $52.701.59, through wire transfer, to the following:

Yours sincerely, / faithfully

Name

Signature

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