As a business owner, or even as an individual, you may, on occasion, have to remind someone of the fact that you are owed a sum of money.
According to most' states' business and tort laws, you can accomplish this with a Late Payment Collection Letter, which also happens to be the first step to collecting funds legally owed.
A Late Payment Collection Letter ought to fit the situation or purpose in tone and content. The sum of money owed and the overdue status may dictate the course of action. A business owner may choose to send three Late Payment Collection Letters before referring the debt to a collection agency or the courts. Just for illustration purposes, you could send the first Late Payment Collection Letter two weeks after the due date as a friendly reminder.
This and a subsequent letter could serve to broach the subject of an installment plan just if the debtor is having problems coming up with the funds. You may choose to send the second Late Payment Collection Letter after a month or two with an upgrade in the tone's solemnity, including a warning to refer the matter to a collection agency. If that is the case, the third and final Late Payment Collection Letter could disclose the debt being sold to a collection agency or elevated to litigation.
Depending on your state, a Late Payment Collection Letter may also be known as:
You could use a Late Payment Collection Letter whenever you have to collect a debt, most commonly as a small business owner but not necessarily. For example, independent contractors can use a Late Payment Collection Letter to collect fees promised but unpaid for approved work.
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In crafting your Late Payment Collection Letter, you will want to balance between casual and severe or intense.
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Your Late Payment Collection Letter does not have to be signed, and you could send it by email with or without a digital signature. However, in most instances, a business owner selects a method with signature confirmation, which may be required for a debt collection agency to touch the case.
After you have generated your Late Payment Collection Letter on 360 Legal Forms, download a copy and know it's on you to deliver it to the recipient in a way most optimal to a reception. Sign the letter before you attempt to send it in person, by mail, or with a shipping company (with or without signature verification).
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