1. Introduction : The collection of due amount ofusiness is an art. For collection of dues businessman should have patience and ability to explain the customer. If customer does not make payment on time that does not mean that he is never going to pay it. The delay in payment can be due to some probleme. If customer has not paid timely it does not mean that he is dishonest or cheat Collection letters should be written due care and patience. If customer does not pay after collection letter then reminder letter should be written.
2. Stages of Collection letters: Many a times businessman has to write more than one letter to customer to collect their dues when more then one letter are written to customer to collect their dues they are known as stages of writing collection letters,. GenraUy more then one collection letters are written to customer as under:
(1) First Letter : When customer, fails to make payment after completion of credit period, the seller writes the first collection letter to remind him for making payment and requests to make payment at the earliest. He sends the details of outstanding bill with this letter.
(2) Second letter : If payment is not received after the granted time in first letter, then second collection letter is written. In this businessman reminds about the first letter written. Care should be taken that customer should not feel offended, so courteous language should be used while writing this letter.
(3) Third Letter : When seller does not get any reply to second letter, then he writes the third letter. In this letter he mentiond about two reminder letters sent previously. This letter is written in firm but courteous language. Seller should show trust in the customer and be hopeful.
(4) Fourth letter: If there is no reply to first 3 collection letters, then seller has to write fourth collection letter. It should be mentioned that if proper respose is not received in 7 days then seller will be complled to go for litigation and that will harm the reputation of the customer.
3. Conclusion : Generally customer pays his dues during this period of collection letters. Their is no rule that collection letters has to be written in this sequence only. In real life all the sellers keeping their business relation in mind with individual customers, write collection letters as per need and situation.