Tuesday, September 25, 2012

Sample Collection Letter Templates and Why They Do Not Work

Many businesses are attempting to recover funds owed to them by using a collection letter template. The hunt on Google for sample collection letters and templates has been on since the first bill that was sent out by anyone. Most searchers are finding needless results and sometimes coming up with collections gold by obtaining the Holy Grail, "a free collection letter template." Happy to have this secret weapon the person downloads and begins to make this letter their own. They then send it out to the person or company that owes them and wait patiently for the cash to roll in.

After waiting a month the creditor still sits empty handed wondering what has gone wrong? Why hasn't the collection letter worked? It should have! It was courteous and polite. It was well written. The template provided me space to even put a payment address and to format the amount owed in a way that should have persuaded the debtor to pay. But still you receive nothing in return.

Many a template copy of collection letter has fell on deft ears due to one simple fact; it was sent by the same person whom the payee has ignored in the past and will continue to ignore in the future. The reason these letter fail is not the senders fault. Its not because you aren't owed the money rightfully. They just aren't given the authority deserved by your debtor.

The solution!

A flat fee service is the perfect way to initiate an action that will include a third party but not retain percentage of the money owed to you. Paying a low flat fee upfront to have the power of a licensed collection agency put forth demand for payment increases the likelihood of collection ten times what a first party letter from you can do. If the person owing you cash was going to pay you they would have done so when the money was due another letter from you are not going to do the trick.

Debtors will not become motivated to pay simply from one more collection letter from the person or organization they owe money to. It is necessary at this point to bring in a third party who can escalate the nature of the debt to a governing body who can not only impact credit but advise and seek out legal alternatives to debt recovery for their clients.

These companies usually provide a grace period allowing for every dime collected to be paid direct to you. You also have the option once the initial dunning period is over to move forward with a more aggressive contingency based collection if that is necessary.

You have taken the first step in attempting the recovering of funds owed to you! Don't waste it by sending just one more letter! Implement a more successful strategy by using a flat fee service that will give you the strength of third party intervention while allowing you to save time and money not chasing deadbeats. Freeing up your to get back to what matters most, growing your business and assisting your current paying customers.

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