Most freelance writers – particularly those just starting out – don’t have the resources to hire an attorney or a collection agency when their clients don’t pay their bills. And even if you did have that kind of money laying around, there wouldn’t be any guarantees. That is why freelance writers must use their writing skills to create collection letters on their own.
A collection letter is a simple, one-page document that demands payment for services rendered. Writing a collection letter isn’t hard, but the way you word it and the professionalism contained will determine whether it does you any good. Your freelance writing business will suffer, however, if you don’t learn this simple skill.
Send Collection Letters by Mail
You never want to e-mail a collection letter. Instead, send it by certified mail with a return receipt requested. It’s quite easy to simply delete a collection letter sent by e-mail and a mailed collection letter tells the recipient that you’re serious about collecting the debt.
Use Your Letterhead
All freelance writing businesses should have their own professional letterhead. If you don’t, be sure to create one before you send your collection letter. It should state the name of your business, your name, your contact information and your logo (if applicable).
The letterhead should take up no more than the top fifth of the page and should not use more than two colors. You can add a page border or other aesthetic additions, but don’t let the design of your letterhead overwhelm the reader. You want to look as professional as possible.
Word Your Collection Letter Strongly, But Politely
While you don’t want to seem as though the collection letter was an afterthought, you likewise don’t want to anger your client. The first collection letter should read like a polite reminder that a balance is owed; if you are forced to send a second collection letter, you can be a little bit more demanding.
A collection letter for your freelance writing business might read something like this:
Dear [Client],
Your final payment of [$900.38] for [Project Name] is now [60 days] overdue. The contract signed on [date] explicitly states that payment in full was due two months ago, which means that your account is now seriously dilinquent.
Please remit payment in the amount of [$900.38] by check or money order or call my office to set up a payment plan.
Failure to remit the full amount by [date] may result in your account being turned over to a collection agency. Your prompt attention to this matter is appreciated.
Sincerely,
[Your Name] [Title]Print Collection Letter on High-Quality Paper
Just as you want your letterhead and letter to appear professional, you don’t want to ruin that statement by printing on cheap copy paper. Instead, print your collection letter on high-quality paper. Fold it into thirds and mail it by certified mail in a heavy-duty envelope.
Never Threaten Without Following Through
Notice in the above collection letter example, I told the client that the account might be turned over to a collection agency. It is usually best not to threaten something like that unless you have every intention of following through. It is also not a good idea to threaten a lawsuit if you have no intention of filing one.
Send a Follow-Up Letter
Collection letters are sometimes answered in a couple of days, but if you don’t hear from your client within two weeks, send a second collection letter right away. The second collection letter should state essentially what was in the first, but should state at the top that it is a second collection attempt.
When you started your freelance writing business, you probably didn’t realize that you’d be moonlighting as a collection agent (with really terrible pay), but that’s what happens. If you have a seriously dilinquent account in a large amount, you may want to solicit the help of a collection agency or attorney.
Reference:
- www.toolkit.cch.com/tools/letter_m.asp — Sample Collection Letters
