Collection Letters

The Best Debt Collection Letter Guides and Templates for your Business

Collection Letter Sample Wheel DiagramBusiness debt collection is like a trip to the dentist—necessary, but not fun and sometimes even painful. Taking an Advil won’t ease that pain, but sending your debtor an effective demand letter for payment will. Studies show that customers pay in a priority fashion. A great collection letter will raise your priority level and get you paid faster.

Developed by industry leader Ben Ricci, the following five collection letter samples have proven to boost collection rates by up to 40%. Each one is customizable and designed to be sent by you, the first party creditor. If used correctly, they will increase the speed at which you are paid and decrease the number of past-due accounts on your desk.

Unlike most debt collection letter templates, these come with complete how-to-guides to ensure they are used correctly in order to achieve optimal results. You can download all five sample demand letters and collection letter templates for FREE right now.

Collection Letter Templates

Collection Letter Sample - First Collection Letter

The purpose of a collection letter is to get your debtor’s attention, but that almost never happens on the first try… Until now. This letter maximizes the results of a first follow-up by actually getting the attention of your debtor at an early stage. This unique (and shockingly simple) formula increases early collection rates, thereby cutting the amount of time you usually spend chasing down delinquent debtors.

Collection Letter Sample - Final Demand Letter

Letting your debtor get away without paying is unfair. Taking your debtor to court is time-consuming and expensive. When it comes to stubborn debtors, those used to be your only two options. This time-tested final demand letter is option number three. It’s so powerful that it has resulted in payment in as many as one-third of all cases without going to court. A good final demand letter needs more than just the right words—it needs to be sent at the right time and to the right person. This guide reveals how to effectively check all those boxes.

Debt Collection Template - IRS Advantage Collection Letter

You can legally get the IRS to help you combat delinquencies, and this guide reveals how. This collection letter sample has helped countless businesses drastically reduce third party expenses and collect their most delinquent receivables faster than ever before. This approach can increase your in-house 90-day account collections by 50% or more, and this letter has proven to get even the most delinquent debtors to finally pay their debt. You can’t beat having the IRS on your side in a collection matter.

Debt Collection Template - Bad Check Collection Letter

Even though receiving a bad check is less common for some businesses, it’s crucial for every type of business to know how to deal with it before it occurs. Collecting late payments is enough of a headache, and, if you aren’t prepared for a bad check situation, that headache will only get worse. This letter template makes it significantly easier (and quicker) to collect payment from a debtor who gives you a bad check.

Collection Letter - Debtors Exam Letter Sample

Before throwing in the towel or paying someone to collect payment for your company’s past-due accounts, try this method as a final attempt. This letter will hit a pressure point that your debtor won’t expect and, therefore, won’t ignore. If your debtor had the option to either pay you or reveal all of his or her assets in court, which option do you think he would pick? This letter creates that situation for your debtor, forcing him to finally pay their debt.

Video Tutorial

You’re credit and collection department is only as strong as your weakest link. Even a SMALL improvement in any of your letters will make a huge impact because of the multiplier effect. You’re sending the same letters out hundreds or thousands of times each and every year. So use our collection letter templates to start collecting more money, sooner, at less cost, and without losing valued customers.

5 Collection Templates - PresentationMost businesses only need three to five demand letters for payment. A good letter can not only result in payment but also when followed up with a phone call will increase collections and in less overall time spent. You can download these five collection letter samples to make sure you are using the most effective letters for your business. Save time by getting to the bottom line faster. This allows more time to spend on other activities to prevent more delinquencies.

Collection Letter - Time Based 1These first three sample demand letters are time based in that they are used at set time ranges from invoice date. The first collection letter is actually more of a customer service letter because it doesn’t even ask for payment, rather the reason for non-payment. The final demand letter is probably the most important and frequently used commercial letter when you hit the sixty to ninety day invoice date range. The IRS letter is outside the box. It’s a last resort and this helps avoid agency and or collection attorney expenses.

collection-letters-situationalThese two debt collection letter templates are situational as opposed to time based in that they are special situations that don’t occur on a regular basis. The Bad Check Letter is good to have on hand just in case. For commercial creditors, bad checks are rare. But they do happen and you want to be ready for it if and when it does. The Debtors Exam letter is good for both collecting a small claims court judgment and better yet avoiding small claims court with this threat that includes an arrest warrant against your debtor if they fail to appear.

If sales is the engine, credit is the oil. Your profits depend on it. Another way to put this is: Sales drives revenue, but credit ensures profits. We would like to show you how to: Collect more money, sooner, at less cost, and without losing valued customers. Thanks for watching.  And best of luck turning Debts into Dollars.

Understanding The Value Of Our Collection Letter Process

Making a sale is great, but a sale isn’t a victory until the money is collected. The problem is that accounts receivables are growing faster than sales, and chasing down delinquent debtors is a race against time. The longer an account goes unpaid, the less likely you are to collect payment. Each day that passes is a day closer to it becoming nothing but a direct hit to profit on the bad debt expense line of your balance sheet.

To complete a sale, you need to collect the money. To collect the money, you need a good collections process. These five guides and their respective collection letter samples/templates are designed to help you do that. But no one knows your business the way you do, so it’s up to you to position each letter to represent your business the right way.

Without satisfied customers, there would be no one to purchase your products and services. Keep that in mind when communicating with your customers. However, you need to also keep in mind that a customer is not a customer until the money is in the bank.

No business owner should have to spend that much time getting a customer to pay for a product or service that they provided for that customer. You need to spend less time chasing down delinquent debtors and more time getting paid. When Ben realized this to also be true for himself and his company, he saw no choice but to find a solution.

He was tired of spending so much time making futile attempts at getting what rightfully belonged to him. Ben provides a service and he expects to be paid for that service, as anyone would. Chasing down delinquent debtors was a futile and frustrating task, but he didn’t want to pay a collection agency or attorney to do it for him. He wanted to do it himself. There wasn’t a solution aggressive enough to handle that task, though, so he decided to create one.

That’s when he developed this bulletproof system that has proven to be a complete game-changer in the world of collections. For the first time ever, businesses are receiving payment from their most stubborn debtors, and in half the amount of time it used to take. They are finally receiving a reward for their effort.

Time is money, and time is your most valuable asset. Why not spend less time on your collections and more time with your family and doing the things you enjoy? Let us help you collect more money at a faster rate and lower cost, without losing valued customers. Start right now by downloading each one of these letter guide tutorials and sample letters today.

Read What Others Are Saying About Our Collection Letters


“Our company has been using various Stevens & Ricci collection letter templates and we found them to be much more effective than the Transworld Systems pre-paid letters we were using. We actually stopped using the Transworld letters because Stevens & Ricci’s collection letters had better results including more money collected and fewer collection accounts needing to be placed. They’re easy to use.”

– Sandra V. – Salt Lake City, UT
Credit Manager, Transportation Company


“Just wanted to drop you a quick note to let you know how successful your sample IRS collection letter technique has been for me. I have used this technique and have gotten positive responses 4 out of 5 times. I usually send a copy of a W-9 form and highlight the cancellation of debt portion in order to show the account that this is for real. It has been a real gem for me on some of those hard accounts that just refuse to pay, until they think that I am informing the IRS of some unreported income. Thanks again and keep up the good work.”

– James O. – Camden, NJ
Credit Manager, Graphic Arts Supplier


“I mailed 25 debt collection letters based on the IRS Advantage collection program – 15 paid right away without even a follow-up call. These were our most stubborn accounts given one last chance to pay.”

– Angela T. – Brooklyn, NY
Wholesale Fuel Distributor