For a variety of reasons some accounts just don’t respond to the usual 90 days of letters, emails or calls. It is important at this point to stick to your policies and not lose credibility by duplicating previous steps. The final step in any collection program should be a final demand and you want to make it count.
We highly recommend that your Final Demand letter be sent in the mail. If the balance is large, send the letter by way of certified mail. This is especially effective if your communication up to this point has been by email as it sets the Final Demand letter apart from other communications, which adds to the sense of urgency.
Here are a few sample templates that you can modify to fit your business and previous collections steps.
Final Demand Template – option 1
Dear [Customer Name],
This matter is critical. Your full attention is required.
We at [Your Company Name] have repeatedly reminded
you of past due invoice [#—] that was due on [Date] in the amount of [$—]. To date, we’ve not received payment from you.
IF WE DO NOT RECEIVE PAYMENT IN THE NEXT 10 DAYS, YOUR ACCOUNT WILL BE PLACED WITH OUR COLLECTION AGENCY FOR FURTHER ACTION.
You can avoid further actions on our part by paying the above balance in full today.
Please call us now to make your payment.
Sincerely,
[Your name, business name, address and phone]
Final Demand Template – option 2
Dear [Customer Name],
THIS MATTER IS URGENT. YOUR COMPLETE ATTENTION IS REQUIRED.
Despite our continued requests and patience, your past due balance of [$—] remains unpaid.
We have reached the point that unless the balance is paid in full or satisfactory payment arrangements are made by [Date], we will have no choice but to refer your account to our collection agency.
This is not a step that we like to take since our goal is to build long-term relationships with our clients. We are hopeful that you will do your part to maintain our relationship and protect your credit rating.
This is our final request for cooperation.
Sincerely,
[Your name, business name, address and phone]
Final Demand Template – option 3
Dear [Customer Name],
Despite our continued requests and patience, your past due balance of [$—] remains unpaid.
We have reached the point that unless the balance is paid in full or satisfactory payment arrangements are made by [Date] then we will have no choice but to refer your account to our collection agency.
This is not a step that we like to take, but you have failed to honor your commitment to us when we extended your company credit. We did our part and are hopeful that you will do your part now. I am sure you will agree that a good credit rating is important to every business.
This is our final request for cooperation.
Sincerely,
[Your name, business name, address and phone]