Late Payment Collection Letter

You do not, especially when you are sending the first reminder letter. After you have sent your final notice, you can retain an attorney if you wish to elevate the matter to mediation or litigation.

The Late Payment Collection Letter is a type of demand letter customized to debt collection. Of course, as in the case of a demand letter, you can use it to make literally any legitimate demand.

Many if not most businesses and contractors issue an invoice before commencing work on a project. You could ask for a deposit on the invoice, which, even without a mandatory deposit, creates better client involvement by virtue of the receipt. You have the privilege to specify all the payment terms upfront so as to avoid future misunderstanding.

Charging a fee for late payments is legal (as long as it is not extortionary) and not uncommon in business. However, any late payment fees must be specified upfront for the knowledge of the person or business that you intend to provide goods or services.

Late Payment Collection Letters can only do so much. If you deep appropriate, you can refer the matter to a debt collector agency that would know all the aggressive tactics permissible under the law. These agencies may charge up to a fee of 25% on the money collected and some may attempt to buy the debt from you for pennies or dimes on the dollar. Another alternative could be to offer an installment plan for the payments, failing which you can always elevate to litigation if the sum is worth the trouble and expense.