Please Pay. Pay Now. Pay or Else.

Reminder letters are one of the most effective methods of making formal 'definitely on the record' contact with a debtor company - but it can also be the least efficient if you give your debtors an excuse to ignore them. Reminder letters are likely to be ignored if they are:

• unclear;
• too long;
• contain no demand;
• contain no threat;
• convey no urgency;
• contain inaccurate facts, or
• are sent to the wrong person

And, of course, if they are sent exclusively by first class post. It really is a good idea to 'double up' and send a hard copy by post, and a copy by fax or e-mail attachment.

Many people try to make their collection letters stand out by using gimmicks like coloured paper or humorous wording. It doesn't work. Reminder letters just need to be clear, short, and unambiguous, contain correct information, and be addressed to the appropriate person in order to get attention.

The letters need to contain three basic elements:

• Please pay X amount.
• Pay it now.
• Pay it now, or else.

and use wording and a style that is going to have the greatest impact on the reader. You might use capitals or italics to highlight attention grabbing words or phrases - 'please telephone us now', for example, or 'YOUR CREDIT RATING IS AT STAKE'.