Follow Up Outstanding/Overdue Accounts
Credit Terms
The terms of credit offered to account customers varies from business to business. Payment terms might be seven (7) days, thirty (30) days or in special circumstances sixty (60) days. The most common term is thirty days from issue of invoice. Most customers will not pay without the receipt of the statement.
The outstanding accounts must be regularly supervised and overdue amounts followed up. A stick on reminder may by used on issuing a subsequent account. If this reminder is ignored, standardised letters of demand may be used to collect the outstanding amount.
Steps In Collecting Overdue Accounts
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Examples
1 __________________________
We Have Noticed
That payment of your account has apparently been overlooked.
It is easy to miss a due date. Could you please correct the oversight. If your remittance is already in the mail, please ignore this note.
Thank you for your cooperation.
2 __________________________
Dear Customer
You may not have realised that your thirty (30) day account is now sixty (60) days in arrears and your last charge has exceeded our credit limit. We would appreciate if you could make arrangements to settle the account by return mail.
If your remittance is already in the mail, please ignore this note.
3 __________________________
Dear Customer
Referring to our correspondence dated _________, we regret we have not yet received a remittance for your over due account. We must now insist that you forward payment for the full amount outstanding.
Although we are willing to assist our customers in times of difficulty, we cannot do so without their cooperation.
If your remittance is already in the mail, please ignore this letter
4 __________________________
Dear Customer
Referring to our correspondence dated _________, we regret we will have to take legal action for the amount of $__________ unless we receive your remittance on or before ___________.
We regret to take this action, however, we have no other choice as our correspondence has gone unanswered.
5 __________________________
LEGAL ACTION ADVICE NOTICE
Customer Name:
Account Name:
Amount Owing:
Days Overdue:
To protect your credit arrangement and additional court costs and legal fees, you must pay the full amount directed to the plaintiff by return.
Should you not act on receipt of this notice, we will assume that you do not intend to pay without the inconvenience of legal action.