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Many of us tend to have the mistake of getting their first letter of reminder to the deliquent debtors very stereotype re:do not have named person,paper quality is extremely bad,standard signature chop,etc
We must always remember that any reminder letter must serve a purpose hence we need to understand what should be the good features of the first standard reminder letter.
Append below are some of the good salient features:
- It should be individually signed if possible,even if they have been produced en masse.
- Letters should be short.
- An effort should be made to personalize each letter and disguise the fact that is mass produced
- The tone should always be polite but firm. Never apologize for asking an overdue payment
- Customers should be given opportunity to raise queries
- Letter should look impressive. Should be well-printed on good-quality paper.
- If possible,letter should be addressed to a named person
- Letter should not include phrases such as “ Please ignore this letter if payment has been made recently”. It is unnecessary and looks weak
- The database must be kept up-to-date. Customers will be infuriated if the same mistakes are repeated time after time.
- Wherever possible,write to a
Sample of FIRST STANDARD LETTER/REMINDER
Mr Jimmy Smith,
Finance Manager,
Name And address of firm
Date:
Dear Mr Jimmy
We notice that a balance of $XXX is overdue for payment. We are not aware of any reason why payment should not be made,but please do let me have details if this is the case.
If your payment is on the way,please accept our thanks. Otherwise could we please have your remittance by return.
Yours sincerely,
………………….
Mr.xxx
Credit Controller
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FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four,Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.Also author to another very popular free educational accounting cum finance blog:http://basiccollegeaccounting.com under the branding of College Accounting Coach.
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