Example Collection Letter for Unpaid Invoices

When it comes to dealing with unpaid invoices, a well-crafted collection letter can make all the difference in getting your business paid on time. Here's an example of a collection letter you can use as a template:

'Your Business Name'

'Date'

'Creditor's Name and Address'

Dear 'Creditor's Name',

Re: Outstanding Balance for Unpaid Invoices

We are writing to inform you that we have yet to receive payment for the outstanding balance on your account. As per our previous agreements, we expect prompt payment for all goods and services provided.

Below is a breakdown of the outstanding amount:

* Invoice No. 'Invoice Number': £'Amount' (due date: 'Due Date')

The total outstanding balance amounts to £'Total Amount'. We kindly request that you settle this debt as soon as possible.

If we do not receive payment within the next 30 days, we will be forced to take further action to collect this debt. Please note that interest and penalties may apply if the debt remains unpaid for an extended period.

We appreciate your prompt attention to this matter, and we look forward to receiving payment shortly. If you have any questions or concerns regarding this outstanding balance, please do not hesitate to contact us at 'Your Business Contact Information'.

Sincerely,

'Your Name'

'Your Title'

Please note that the above letter is just an example, and you should adjust it according to your specific business needs. Remember to always keep a professional tone and include all necessary details in your collection letters.

Remember, staying on top of outstanding invoices is crucial for maintaining a healthy cash flow and minimizing financial stress for your business. By using a well-crafted collection letter like the one above, you can effectively communicate with your debtors and get paid on time.

If you have any questions or need further guidance on creating effective collection letters, feel free to reach out to HMRC (Her Majesty's Revenue and Customs) for more information on VAT rates, exempt goods and services, and other related topics.

Example collection letter for unpaid invoices