Mean it? Then write it …

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Mean it? Then write it …

The debt was 2 years old. Over $11,000. The debtor was a friend of the creditor. We applied two of the principles in this blog. We wrote the bad news and blamed other things for having to get “heavier”.

3 Days Later the debtor contacted the creditor as he realised that this time, he HAD to do something. This is what we wrote …
Dear John,
I am obliged to write formally to you in relation to the following outstanding fees.
Date Ref Type Original Outstanding
29/02/2008 Fee 12345 Invoice $9,350.00 $9,350.00
30/04/2008 Fee 67890 Invoice $1,650.00 $1,650.00
18/05/2009 Fee 54321 Invoice $297.00 $297.00
Total $11,297.00
My other Directors are now insisting that some action be taken for recovery of the above. Our normal policy is that if fees are outstanding more than 90 days, either a mutually acceptable arrangement is entered into for payment or legal action is commenced for recovery. As you can see, the majority of yours are well over two years old. This is unacceptable.
We hereby demand, therefore, that full payment of this debt is received in our offices on or before the close of business of Tuesday, 06 July.
If it remains unpaid and I have not heard from you by then I will be left with no other alternative other than to place this matter in the hands of our solicitors with instructions for them to pursue recovery on our behalf.
I would prefer not to have to go to such lengths, but, John, under the circumstances, you leave me no choice.
Please Note:
The letter blames two things – “My other Directors” and “Our normal policy”. This allows the creditor to remain The Good Guy AND the debtor to save face at the same time.
The letter was sent by Registered Mail so that we knew when he’d got it. But, more importantly, we knew that he’d know that we knew that he’d got our letter!
So, if you come across a similar situation, try something similar to get a reaction from your debtor while leaving lines of communication open with your debtor at the same time.

By | 2017-10-17T05:53:45+00:00 July 8th, 2010|wording|0 Comments

About the Author:

Have you ever wondered why a client does business with you and then ignores your invoice like they had no intention of paying it in the first place or they treat you like their own personal line of credit, leaving YOU dangling, waiting months for their payment? Unfortunately this situation is all too common and can even be puzzling for the most experienced business owner. If you’ve ever had to handle outstanding accounts or you are just so over non-payers, then we can help. Real-world skills, solutions, tips & strategies to get more accounts paid on time, and, most importantly, how to maintain customer goodwill while keeping YOUR cash flow in the positive. You will find the blog posts helpful but to get real results, contact us by using any of the forms on this site, by email or by phone. I’ve been involved in the management of accounts for over 30 years, heard every excuse in the book, can spot a non-payer at 20 paces. Finance Companies in the 70s (systematic, tough), professional firms in the 80s (no systems, too gentle) and, since then, just about every other sort of business you can think of. I’ve written books on the topic, spoken all over the place about it and the blog in this website is my way of “giving back”. I hope you find it helpful.

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