Send a Strong Message to Your Debtor Using a Letter of Demand
Hi, my name is Adam Stewart, Debt Collection Expert and owner of Debt Recoveries Australia.
I get many clients asking me how they should collect their debts and what sort of letter they should send, if at all. I think it is the credit manager’s personal decision if they outsource to a professional debt collection expert, or they attempt the recovery themselves. If you want to do it yourself, here are some insider’s tips to help you along the way.
Friendly and Persistent
The secret in your debt collection communications is to be friendly, yet persistent. I believe persistent follow up will often guarantee payment, along with friendly-worded letters or emails.
Sometimes a correctly worded and efficient letter of demand is enough to get you payment in full. A Letter of Demand is the document needed to make a formal demand that somebody who owes you money should pay you and avoid court action.
Sending a letter of demand can save you heaps of money in court fees and solicitor’s fees. It is easy and you do not need a licence to do it yourself.
What is a Letter of Demand?
A Letter of Demand is a formal request to be paid an outstanding debt.
What are the advantages of sending a Letter of Demand?
Sending a letter of demand can save you heaps of money in court fees and solicitors fees. It is easy and you do not need a licence to do it yourself. Sending the letter of demand will give the debtor one more chance to come to some sort of arrangement with you, before you hand it over to a debt collection agency or litigation firm. The letter will also send them a clear indication that you intend to escalate the matter and that you are serious about payment.