Credit and collection letters are written when you want to remind your customers of the due payment and you want to collect money from them. The purpose of this letter is to collect money from the customer by letting them know that the due date of the payment has passed and they have not made the payment yet.
You should follow the tips given below to write a professional credit and collection letter:
Use a courteous tone:
Sometimes people get angry when they don’t get the payment by the due date. It might be the case with you also. No matter how angry you are, since you are writing a professional letter, you need to remain courteous.
Remind him of the due date:
Mention in the letter that the due date has passed. Mention the due date for making it clearer to the reader that he is late.
Make the collection easier:
Never forget the purpose of collecting credit and therefore, your letter should remain focused on your purpose so that you can collect the money from the receiver. Mention the exact amount that is due and also, warns the reader to pay as soon as possible to prevent serious things from happening.
Make sure that you don’t use a harsh tone even if you have to warn the reader of the dire consequences.
Read the sample letter given below:
Sample letter 1:
Subject: Credit collection for [X]
Respect sir,
Please find this letter as a reminder of the payment that has been due for 10 days. The last date to make the payment was 10th September 202X. W We have sent you many reminders concerning the payment of the credit but there was no response from your side.
Please consider this letter as a reminder as well as a warning as the bank holds the right to freeze your account and all the funds in it in case of non-payment of the credit till the next due date.
Non-payment or late payment of the credit always results in lowering your credit score and ruining your credit report. It will be very difficult for you to get approval for the loan in the future with this credit report. If you want to discuss the matter in detail, feel free to contact Mr. ABC the manager of the bank. The bank is ready to help you by adjusting the due dates of the repayment or reducing the amount of fine you are bound to pay with late payment.

Format: MS Word 2003+ Size: 45 KB
Sample letter 2:
Subject: Credit collection for [ABC]
Respect sir,
This letter is being written to you in an attempt to collect credit from you which has been due since 10th September 202X. This is the second time you have shown no respect for the deadline which has now become a matter of concern for the bank. Please find this letter as a reminder for you to clear the due payment by the 10 of next month.
Not being able to pay the money by the due date will have serious implications as it will lower your credit score and your credit report will also demonstrate that you have not been fulfilling your commitments. In addition, the bank will be forced to take strict legal action against you in case of non-payment of the credit.
We value our customers a lot and our priority is to ensure that we have a healthy relationship with our customers. Therefore, we are ready to support you and give you some flexibility regarding the payment of credit. Please get in touch with us to resolve the matter. You can contact the bank manager, Mr. XYZ, for having your case resolved and adjust the due dates again. Thank you so much for choosing our bank for credit.

Format: MS Word 2003+ Size: 45 KB
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