Debt Collection Email Templates To Help You Collect Debts Faster

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Debt Collection Email Templates To Help You Collect Debts Faster

Debt Collection Email Templates To Help You Collect Debts Faster

Hi, my name is Adam Stewart, Debt Collection Expert and owner of ADC Legal Litigation Lawyers.

Let’s face it, snail mail is dead, so your internal debt collection processes should start with some good debt collection email templates. Forget about snail mail. It’s a waste of your time and more importantly, your customer’s time. So here are 3 debt collection templates that are guaranteed to get your customer to sit up and take notice:

1. Pre-Due Reminder Email

You should remind customers to pay you a few days before the invoice is due and remind them that there is still a balance due on their account. Typically, this can be 3-5 days before the invoice due date.  This is where you can politely inquire if everything is on track for the customer to make payment by the due date.

EXAMPLE:

Subject: [Your business’ name]: invoice [invoice reference number]

Body:  Hi [Recipient’s first name]

I hope you are well.

I just wanted to drop you a quick note to remind you that [amount owed on invoice] in respect of our invoice [invoice reference number] is due for payment on [date due].

I would be really grateful if you could confirm that everything is on track for payment.

You can CLICK HERE to go to our website to pay your account using several options.

Kindly disregard this email if payment has already been processed.

Best regards

[Sender’s first name]

It should be short, concise, to the point and very clear as to what you want. It’s imperative that you say as much as you can with as little text as possible. Remember to include the exact amount owed, the invoice number and the due date. Since this is a reminder email, no need to warn them about any penalties just yet. Please always remember to attach a copy of the invoice.

2. Overdue Reminder Email

As the invoice ages you will need to adjust the tone of your communications with customers. Invoices that have aged beyond your terms need to be followed up immediately. I would say within 2-3 business days. This Overdue Reminder email should be sent reminding the customer of the past due balance with a more serious tone. The customer needs to understand that this is becoming a serious issue and that failure to pay may mean penalty interest, fees and/or legal action. Sounds serious? Well it is if you want to get paid and you need to send a strong message to your customer that you mean business. They will respect you for it and if they don’t, they’re probably not worth doing business with in the future.

EXAMPLE:

Subject: [Your business’ name]:Overdue Invoice [invoice reference number]

Body:  Hi [Recipient’s first name]

We understand that oversights happen but would appreciate immediate payment of this amount, which is now overdue.  If payment has already been made please disregard this email.

You can CLICK HERE to go to our website to pay your account using several options.

We remind you of the following penalties for non-payment [ state your penalty terms here, including any interest].

Thanks for paying promptly.

Best regards,
(Insert Name)
(insert position title)

Note that this email is very clear that you want “immediate” payment. You do not ask them to pay, you are quite clearly telling them you want payment immediately and you are stating the consequences of non-payment. Your terms should be clearly written so they penalise late payers, by charging interest and or recovery fees and any legal fees that may be incurred by you as a result of non-payment. As with your previous emails, remember to attach a copy of the invoice.

3. Final Notice Email

Still no payment? Schedule this “Final Notice” email only 5 days after the last one. The faster you get through this process, the quicker you can outsource to a debt recovery agent if no payment is made.

EXAMPLE:

Subject:[Your business’ name]: invoice [invoice reference number] OVERDUE

Body:

Hi [Recipient’s first name]

I hope you are well.

We have yet to receive payment from yourselves of [invoice amount owed] in respect of our invoice [invoice reference number] which was due for payment on [date due].

This invoice is now [number of days overdue] days overdue and late payment penalties will now be added if payment is not received immediately. This matter may also be outsourced to our credit management agent, Debt Recoveries Australia and ADC Legal. This action may result in your loss of credit rating and/or court action against you. You may also be responsible for any recovery and/or legal fees incurred by us during this process. You can CLICK HERE to go to our website to pay your account using several options.

If payment has already been made please disregard this email.

Thanks in advance for your understanding and cooperation.

Best regards
(Insert Name)
(insert position title)

So in this email you clearly state what the repercussion of non-payment will be, including penalty fees. This assumes that you have already stated clearly in your terms and on your invoices about your penalty fees, including charging any recovery fees and/or legal fees to your customer, in the event of non-payment. These terms must be clearly stated and agreed to by your customer. Again, remember to attach a copy of the invoice.

Summary

You can set these templates up quite easily in your email server of choice. We use Outlook, so here is a link that shows how to set up templates in Outlook and Xero.

I hope these templates help you with your internal debt collection processes and remember to outsource quickly to a debt collection agent, if you still have no luck.

 

ADC Legal Litigation Lawyers is a legal practice specialising in commercial advice and litigation, debt recovery and insurance claims recovery disputes. For more information, email us at email@adclegal.com.au or call 1300 799 820. Talk to us about your litigation or dispute concerns via Skype at adclegal.

 

 

 

 

 

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