Seven Day Demand LetterA seven day demand letter should be sent out as the last action before referring a debt to a collection agency. You will find that this action alone will generate payment from a certain percentage of your debtors. Sending a seven day demand letter should be a standard part of your accounts receivable process. As a general guide, we would recommend sending a seven day demand letter as a debt approaches 90 days past due. Then, when the debt is past 90 days due you should send to a collection agency. Your 7 day letter does not have to be lengthy or complicated. An example would be: Dear (debtor). We refer to invoice # 12345. This account is now well over due for payment. Please note that if payment is not received within 7 days of receipt of this letter, this account will be passed to a debt collection agency. As per our standard terms and conditions, you will be responsible for all collection costs. Yours sincerely,
xxxxxxxxxxxx If you do not get a satisfactory response within the seven days (allow a couple of days for the post), lodge the debt with a reputable debt collection agency. |