I recently received a final demand notice from a Supplier. After I read it, I sent it to our A/P Manager. Whenever I receive something from another credit department, I try to see what I can learn from them. In this case, there was essentially nothing to learn. The final demand letter was too long, and it took more than a paragraph to get to the point. Add in the fact that it was addressed to the “Credit Manager” rather than to our A/P Manager, or the Controller or CFO, and it was even more of a mess.
Our basic demand letter says this: “As of today, there is a balance past due of $x. I hoped this matter could be resolved amicably, but I am almost out of time. If payment in full is not received within ten days, your account will be placed with a third party for immediate collection or legal action.”
- Making certain your message is clear and concise;
- Not repeating yourself;
- Avoiding the use of jargon;
- Sending correspondence directly to an individual – never to a job title;
- Indicating the action you need the recipient to take, and the deadline for completing it;
- Not being overly formal;
- Trying to appeal to the reader’s needs;
- Keeping your message brief and professional;
- Using templates for routine correspondence.
That’s my opinion. What is yours? How about sharing the highlights of your Final Demand letter in the Comments section?
Michael Dennis’ Covering Credit Commentary. Michael’s website is www.coveringcredit.com.
The opinions presented are those of the author. The opinions and recommendations do not necessarily reflect the views of CMA, or their Officers and Directors. Readers are encouraged to evaluate any suggestions or recommendations made, and accept and adopt only those concepts that make sense to them.