Bit advice on making a letter for demand of payment.

[Vintage06]

Hey there.

Hope everyone had a good christmas & new year.

Basically a quick question. I'm making up a letter to send to a couple of customers for demand of payment - Before we pass it on to debt collectors.

I've not had to do this in 3 years of business. But i've got 3-4 outstanding invoices (one from May) that i really want payment for, But i'm not sure how to word it.

I basically want to say if we don't recieve payment within 30 days we'll pass it on to debt collectors.

 

[james_firmsites]

I would not give them 30, too much time in my view. When I send things out they are on 14 days notice of action. Something like...

Please note that due to non-payment we will be passing this account to a collections agency in 14 days. As this will incur additional costs on your behalf we would request to urgently make contact to arrange payment.

 

[Vintage06]

I would not give them 30, too much time in my view. When I send things out they are on 14 days notice of action. Something like...

Please note that due to non-payment we will be passing this account to a collections agency in 14 days. As this will incur additional costs on your behalf we would request to urgently make contact to arrange payment.

Thanks for your help. 14 days is a good idea. I have a feeling i'll have to put them forward to collections agency anyways but i've done plenty of work for them in the past and thought i'd give them a bit of time. But now there taking the mick.

 

[Root 66 Woodshop]

With all due respect, the one from May should be straight to the debt collectors.

Have you contacted them on more than one occasion chasing payment? - If so, let the debt collectors deal with it now for you.

 

[Simply Business]

You've got to be firm I think (without coming across as aggressive) and it all comes down to tone:

Please note that due to non-payment we will be passing this account to a collections agency in 14 days. As this will incur additional costs on your behalf we would request to urgently make contact to arrange payment.

Very simple and to the point - perfect!

 

[Vintage06]

With all due respect, the one from May should be straight to the debt collectors.

Have you contacted them on more than one occasion chasing payment? - If so, let the debt collectors deal with it now for you.

Yeah but just over the phone. I want to send an actual letter to make it offical on paper. Then i'll pass it over to the debt collectors. We've waited since May.

The bill is only just under £250.

 

[Vintage06]

You've got to be firm I think (without coming across as aggressive) and it all comes down to tone:



Very simple and to the point - perfect!

Yeah thats what i've put. Along with a copy of the invoice. Thanks for your help.

 

[Mainland]

The May invoice is quite clearly taking the mick. I am assuming you sent them a regular statement showing the overdue account and have also spoken to them to ask for payment? If so, the next step would be to send a letter through for payment within 14 days with threat of further action. Unfortunately you have left this a bit late now. It is important to keep a tighter rein on unpaid invoices as you may find the company is going into liquidation by now and you'l end up with nothing.

 

[Vintage06]

The May invoice is quite clearly taking the mick. I am assuming you sent them a regular statement showing the overdue account and have also spoken to them to ask for payment? If so, the next step would be to send a letter through for payment within 14 days with threat of further action. Unfortunately you have left this a bit late now. It is important to keep a tighter rein on unpaid invoices as you may find the company is going into liquidation by now and you'l end up with nothing.

Yeah normally it's my dad that handles the overdue invoices but he insists on just phoning them. I'm going to start sending out letters etc now.

9 times out of 10 a phone call is followed by a cheque in the post or bacs payment by the end of the week.

 

[Mainland]

A lot of companies are afraid of being too aggressive when it comes to chasing invoices as in many cases you won't get repeat custom. If its a one off customer I would chase them with everything in your arsenal until you get paid, however, if it is a regular customer a little more tact is required before going in all guns blazing. Unfortunately an unpaid invoice from May forefits the right to a tactful approach and needs the services of debt collectors IMHO.

 

[arcon5]

If you are B2B then i'd question whether collection agencies would work - most business owners will know they have as much power and a milk man. Consider a LBA followed by small claims

 

[Vintage06]

If you are B2B then i'd question whether collection agencies would work - most business owners will know they have as much power and a milk man. Consider a LBA followed by small claims

A collections agency contacted me asking if i had any outstanding debts etc.

They said they'd be able to get another outstanding invoice (£900 worth) for me no bother. I said if they can i'd join up with them for future debts.

Still waiting to hear back from them yet. Can't harm trying.

 

[simon field]

If you are B2B then i'd question whether collection agencies would work - most business owners will know they have as much power and a milk man. Consider a LBA followed by small claims

Totally agree. AFAIK A debt collector can only do anything if there's a court judgement in place.

Someone correct me if I'm wrong please

 

[daniel.benson]

Totally agree. AFAIK A debt collector can only do anything if there's a court judgement in place.

Someone correct me if I'm wrong please

A debt collector can't do anything with a Judgment. Only a County Court Bailiff or High Court Enforcement Officer can enforce the Judgment.

Debt collectors are your first point of call before starting action via the Court some are good, some are rubbish.

Contact Steve or Geoff on here for Debt Collection.

Good Luck...

 

[yourcreditmanager]

Vintage06

Here is a wording of a letter before action (LBA), I would tend to use myself for own clients:

[FONT='Arial','sans-serif']We note that payment for the overdue account of INSERT VALUE has still not been received. [/FONT]
[FONT='Arial','sans-serif'] [/FONT]
[FONT='Arial','sans-serif']We must give you notice of our intention to commence recovery action in order to collect this debt unless full payment is received by INSERT DATE. In the event of legal action commencing, we will seek to recover all legal costs and applicable late payment and interest charges under the Late Payment of Commercial Debts regulations (2002) entitled to us. [/FONT]
[FONT='Arial','sans-serif'] [/FONT]
[FONT='Arial','sans-serif']Clearly this is a scenario we wish to avoid and I would ask that you acknowledge receipt of this communication and confirm that payment will be made by the above deadline as soon as possible. [/FONT]
[FONT='Arial','sans-serif'] [/FONT]
[FONT='Arial','sans-serif']I look forward to hearing from you. [/FONT]
[FONT='Arial','sans-serif'] [/FONT]
[FONT='Arial','sans-serif']Regards[/FONT]

I take it this your customers are trader debtors and not private individuals? If so, the above text should be sufficient for what you need.

Hope this helps.

Michael