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Make your Free Debt Recovery Letter

A debt recovery letter or late payment letter is a letter to remind your client or customer that they owe you or your organisation. It sets out the details of the debt such as the date the debt owed... ... Read more

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How to Make a Debt Recovery Letter

  • What is a debt recovery letter?

    A debt recovery letter or late payment letter is a letter to remind your client or customer that they owe you or your organisation. It sets out the details of the debt such as the date the debt owed should have been paid, whether interest is payable in the debt and a reminder that if the payment is not settled a legal action may follow. 

    Make sure you follow the right first step in order to recover a debt that is owed to you or your organisation with this debt recovery letter template. By using a payment reminder letter you can feel assured that you have formally reminded your client or customer to make payment. 

  • When should I use a debt recovery letter?

    Use this debt recovery letter:

    • when you want to recover a debt that is owing to you or your organisation
    • when you want to follow up after an invoice has been sent and the payment terms have expired or after 28 days have passed and the debt remains outstanding
    • when you want to commence a more formal procedure for collection of the debt

    For more information, read Recovering debt

  • What does a debt recovery letter include?

    This late payment letter covers:

    • the date the debt owing should have been paid
    • whether interest is payable on the debt
    • automatic calculation of the amount of interest to be paid in total
    • automatic calculation of the continuing daily amount of interest charged as long as the debt remains unpaid
    • a threat of further action which may be taken if the debt is not paid
  • Why do I need a debt recovery letter?

    You need this letter when your client or customer is late with a payment and you want to commence a formal procedure for the collection of debt. This letter will remind your customer to pay the debt and ensure that your debtor knows the consequences of not settling the payment. These include late payment interest charges (if it is a business transaction) and/or a threat of legal action.

What are some other names for Debt Recovery Letter?

Late payment letter, Payment reminder letter, First debt recovery letter, Overdue payment letter.

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