In-House Collection Tools

A systematic approach to improve your bottom line

Our expertise at Transworld Systems Commercial Division has enabled us to establish a time-tested, proven process for recovering delinquent accounts through a series of verbal and written requests. To aid your in-house collection efforts, we have made this correspondence available via sample scripts you can use to communicate with your past-due customers.

Below is an outline of the process we recommend for faster recovery, based on net 30 terms.

Past-Due Letter: Day 35

START EARLY. By staying on top of receivables you can avoid the expense of third-party collection services.

Thank you for your recent purchase. We appreciate your business and look forward to being of further service in the future.

For your convenience I have enclosed a copy of the statement that originally went out with your order. Your company was extended terms of net 30 for this transaction. At present, our records indicate that we have not yet received payment from you. If you have any questions regarding your account balance or the product you received please contact my office immediately. I will be happy to answer any questions. Otherwise, please remit the balance of $123.45.

Thank you in advance for your attention to this matter.

 


Collection Call #1: Day 45

CALL EARLY. Make sure you convey to your customers how important their business is to you, while still being firm with your determination to collect.

Introduction: "The reason for my call is that your company has a balance due to my company of $123.45 that has gone 15 days past due. My concern is that this might be due to some level of dissatisfaction with the product/service. I'm calling today to find out if there's a problem that I should know about."

If agreement reached: "Good. I'm sure this was just an oversight. I was concerned that this invoice would reach 60 days. Our company has a strict policy about credit limits, and at 60 days all accounts are automatically put on credit hold. I certainly wouldn't want to see you experience the inconvenience of having your purchasing ability interrupted."

"Thank you for your time and assistance. I'll note your file as to when we can expect payment."

 


Collection Call #2: Day 55

BE PERSISTENT. Let your customers know you are serious about handling matters in a timely fashion.

Introduction:"The reason for my call is that your company still has a balance of $123.45. When we last spoke, it was my understanding that payment was to be sent."

"While we value our business relationship, the balance is now significantly past due, and as you may remember from our last conversation, it is our policy that credit holds be put on accounts once they reach 60 days. We would very much like to keep our credit relationship with your company and I wanted to call to see if we can resolve this today." (Make payment arrangements and/or address problems.)

"Thank you for your time. I'll note it in my file that we can expect payment."

 


Termination of Credit Letter: Day 65

TERMINATE CREDIT. You are taking a risk by continuing to grant your customers credit if they have taken no action to resolve their debt.

Our company shipped your product (provided you a service) in good faith. Unfortunately, we have not received either our payment or any notification of any problems with our product/service. This lack of communication concerns us.

The purpose of this letter is to notify you that, due to nonpayment, your open credit account has been placed on credit hold status, and will remain so until your balance with us has been satisfied, or satisfactory repayment arrangements have been made. Your attention to this matter
is now strongly encouraged.

We do not take these kinds of actions lightly. Our sincere hope is that this is just a temporary delay in payment that you will be able to remedy. We do value our relationship and its continuation is our primary goal. Please call me if there in anything you would like to discuss or if there is any way I can assist in the resolution of this matter.

 


Collection Call #3: Day 75

MAKE ARRANGEMENTS. It is important that your customers make an effort to resolve the situation. This is a crucial step in distinguishing a customer from a debtor.

"I'm calling today to discuss the delinquent balance your company has outstanding with us. At present, your balance here is $123.45, and according to my records, we've not received payment at all on this balance. I am calling to find out if this is a problem that we can work out amongst ourselves. I know that from time to time every company can experience a cash flow problem. If that's all this is, I'm sure that management here would be happy to work through this with you. So, let me ask you this. If you are not in a position to satisfy the entire amount right now, what kind of payments could we agree to over a short period of time?"

(Agree upon the shortest terms possible.)

"I'm glad we came to an agreement, but I hope you realize that I'm up against the clock on this one. What I'm going to need to do now is to restate the points of what we've just agreed to. I'll have it typed up and fax it over to you within 24 hours. Once you've signed it, I'll have our management stop any further action and see about having your account changed from credit hold to a COD basis. Fair enough? Good. I'll have this agreement over to you today. Once you get it, please get it back to me ASAP. Thanks again, and I'll talk to you soon."

 


Final Demand Letter: Day 90

MAKE DEMANDS. When you make your final demand it is important that you stick to your word. For your customers to take you seriously they must know you mean what you say.

The purpose of this letter is to inform you that your company has an outstanding balance of $123.45 that is now 90 days old. Since the invoice is 60 days past the terms originally extended to you, we must now demand your immediate payment in full.

If this payment is not received in the office by close of business on January 31, this matter will be referred to our collection agency and you may be liable for additional charges and costs of collection as provided in our credit agreement.* To avoid the loss of your standing, and damage
to your credit ratings, I strongly urge you to resolve this matter immediately. This will be the last correspondence you receive from this office. Please act now!

*Only if provided for in collection agreement and within guidelines of state law.

 


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