The document provides a timeline and guidelines for accounting and sales teams to follow when pursuing unpaid accounts receivable. It begins with guidelines for evaluating credit risk in new customers. It then outlines specific actions and timeline, including sending invoices and follow up calls/letters, to get unpaid invoices paid. The timeline escalates consequences over multiple unpaid promises and suggests a payment plan as a final resolution before pursuing collections.

1. AAC C O U N T SC C O U N T S RRE C E I V A B L EE C E I V A B L E
TT I M E L I N EI M E L I N E f O Rf O R AAC T I O NC T I O N
A guide for accounting and sales people working together toward a common goal: getting the company paid
P r e s e n t e d b y
GETGETS P E C I A L I S T S I N C O M M E R C I A L C O L L E C T I O N
“Creditors have better memories than debtors” – Benjamin Franklin
M i c h a e l W i r s c h a m
GOLDMAN, EVANS & TRAMMEL, LLCGOLDMAN, EVANS & TRAMMEL, LLC
Tel: 800-871-5284 Fax: 828-295-6523
10323 Cross Creek Blvd, Suite F, Tampa FL 33647
https://www.linkedin.com/
1

2. CONTENTS PAGE
 A/R (Accounts Receivable) Timeline for Action - Guide 3
 A/R Timeline for Action – Dialogue and Letter Samples 6
 Final Demand Notice – A/R Composition 12
 Final Demand Notice – Your Letterhead Sample 13
PREAMBLE
Debtors can sense when a supplier doesn’t have a sincere credit and collection
plan. They take advantage of weak creditors.
For some companies, without credit programs inventory would sit. Working an
account receivable action plan keeps your business thriving and the bills paid
timely. The Accounts Receivable Timeline for Action represents my genuine
desire to help your company remain financially healthy. It works.
Of course certain client-customer situations justify deviations when necessary.
Alter the chart as you see fit to meet your industry demands and your
accounting philosophy. Whatever change you make, do so with responsibility
to your company’s need for cash flow moving sooner than later.
Before you ingest my offering, here are some ground rules to consider when
calling customers for money:
1. Learn the contact names of the person who ultimately authorizes paying your
account, the name of the person who signs the check, and of course the account
payable contact. At the least know who has authority to apply the stamped
signature to the check. Most importantly, record these names and their role.
2. When you chase a customer for a payment, be aware that a phone message is less
effective than actually speaking with your contact. When you do talk, try to
identify the true problem behind the delinquency. Then, together, you and your
contact can find a workable solution; the one solution that they can meet and
uphold. Then get that agreement in writing. It gives the solution substance and
conveys an agreed sincerity to their commitment.
3. When telling a customer that a consequence will happen after a certain timeline
passes without payment, never repeat to them the same consequence. Instead,
each new consequence should be plausible and more severe than the last. My
advice: avoid spending more than three calls and/or letters to secure payment
from a delinquent customer. Prepare a Final Demand Notice and when unpaid do
not hesitate to assign it for collections. Why move on after three times? Your
resources, time and effort are more cost effective and more likely to return profits
with those who may have been preparing to pay others, not you.
4. When replacing a bad check, request certified funds or credit card or post-dated
checks—deliverable to you by courier first. By the way, my advice is to engage
your courier provider for pick-up so you can track the payment trail, and be
comforted that your money is in-transit. Payment by mail is the last choice.
5. When talking to your customer remain firm in tone, not argumentative. Promising
them a consequence without taking action is harassment. Breaking your word,
your promise, is behaving like a debtor. Don’t harass your customer. Again, after
three times spent to collect your money the game is over. Like the rules of
baseball, three strikes and you are out.
2

3. A / R T i m e l i n e f o r A c t i o n – G u i d e
P R E S A L E
W A R N I N G
- - - - - - - - - - - -
H I G H
C R E D I T
R I S K
- - - - - - - - - - - -
M A R G I N A L C R E D I T A P P L I C A T I O N
SUBMITTED FROM NEW SALE PROSPECT OR EXISTING CUSTOMER
 L e s s t h a n 2 - y e a r s i n b u s i n e s s
a n d / o r
 I n c o m p l e t e i n f o r m a t i o n
o T o o F e w T r a d e R e f e r e n c e s
o B l a n k a n d / o r I n c o m p l e t e A n s w e r s
R E M E D Y
Request These from the applicant:
 G u a r a n t e e d C r e d i t R e p o r t s o r C o r p o r a t e P r o f i l e s
 U C C d o c u m e n t a t i o n
 P e r s o n a l o r C r o s s - C o r p o r a t e G u a r a n t e e s
S A L E
D A Y
A/R ACTION STEPS FOLLOWING SALE
1 M A I L S A L E S I N V O I C E
15 C A L L # 1 – C O U R T E S Y C A L L
WAS THE PRODUCT RECEIVED IN SATISFACTORY CONDITION?
 I f n o – N o t i f y t h e s a l e s r e p r e s e n t a t i v e r e g a r d i n g d e l i v e r y i s s u e
o G e t a g r e e m e n t t h a t w h e n t h e p r o b l e m i s r e s o l v e d t h a t t h e r e
w i l l b e n o p r o b l e m w i t h h a v i n g p a y m e n t m a d e t i m e l y
 I f y e s – T h a n k t h e m f o r b u s i n e s s a n d r e s t a t e t e r m s f o r r e m i t t a n c e
29 C A L L # 2 – 1 S T
C O L L E C T I O N C A L L ( S E E P A G E 7 F O R E X P L A N A T I O N )
HAS PAYMENT BEEN SENT?
 I f n o t – I s t h e r e s o m e l e v e l o f d i s s a t i s f a c t i o n o r a n o t h e r p r o b l e m ?
o I f t h e r e i s d i s s a t i s f a c t i o n
 N o t i f y t h e s a l e s r e p r e s e n t a t i v e
o I f t h e r e i s a n y o t h e r p r o b l e m –
 I d e n t i f y t h e s i t u a t i o n
 F i n d a s o l u t i o n
 P r e s e n t t h e s o l u t i o n
 G e t a g r e e m e n t o f s a t i s f a c t i o n t o s o l u t i o n
 G e t a f i r m c o m m i t m e n t f o r r e m i t t a n c e d a t e a n d a m o u n t
• F i r s t p r o m i s e f o r p a y m e n t
30 PAYMENT DUE
40 M A I L L E T T E R # 1
PAST DUE ( S E E S A M P L E L E T T E R , P 8 )
3

4. 50 C A L L # 3 – 2 N D
C O L L E C T I O N C A L L
PAYMENT HAS NOT POSTED BUT WAS PROMISED
D i a l o g u e : “ W H Y D I D Y O U B R E A K Y O U R P R O M I S E T O P A Y ? ”
W h e n w e l a s t s p o k e , y o u s a i d p a y m e n t w o u l d b e s e n t o n < d a t e > f o r
< x $ > . W h i l e w e v a l u e y o u r b u s i n e s s , m y p o l i c y i s t o p l a c e y o u r
a c c o u n t o n c r e d i t h o l d , p o s s i b l y t e r m i n a t e y o u r c r e d i t o n d a y 6 0
w i t h o u t p a y m e n t . I m u s t k n o w y o u r p l a n t o p a y m e , n o w ? ”
4

5. 65 M A I L L E T T E R # 2
CREDIT HOLD OR TERMINATION OF CREDIT ( S E E S A M P L E L E T T E R )
C a l l GOLDMAN, EVANS & TRAMMELL r e p r e s e n t a t i v e f o r a DPS
Debtor Profile Search
85 S A L E S I N T E R V E N T I O N V I S I T
The sales/account representative appeals to the client for payment, preferably
in person, supported by an immediate follow-up e-mail, or fax, or phone call.
C A L L # 4 – 3 R D (AND FINAL) C O L L E C T I O N C A L L
OFFER A PAYMENT PLAN ARRANGEMENT AS A FAIR RESOLUTION
D i a l o g u e : “ A R E Y O U W I L L I N G T O A C C E P T A P A Y M E N T P L A N ? ”
“ I a m r e q u i r e d t o r e p o r t t o u p p e r m a n a g e m e n t a b o u t y o u r
s i t u a t i o n . B u t l e t ’ s t r y t o w o r k t o g e t h e r o n t h i s b e f o r e t h a t
h a p p e n s . I f c a s h f l o w i s a p r o b l e m , a r e y o u w i l l i n g t o a c c e p t a
p a y m e n t p l a n ? W e w i l l a c c e p t a r e a s o n a b l e p a y p l a n , b u t i n
d o i n g s o I w i l l n e e d t h e f i r s t p a y m e n t n o w i n o r d e r t o g e t t h e m
t o a p p r o v e o u r s o l u t i o n . ”
 D e m a n d w e e k l y p a y m e n t s v e r s u s b i - w e e k l y o r m o n t h l y
 T h e p l a n s h o u l d n o t g o b e y o n d 9 0 d a y s
o L e n g t h i e r p a y m e n t p l a n s w i l l g e n e r a l l y f a i l , s o a v o i d i t
If an installment is missed, then the plan becomes null & void
5

6. D
E
B
T
O
R
WA
R
N
I
N
G
S
P R O F I L E O F A P R O B L E M C U S T O M E R
 E i t h e r F i r s t - t i m e c u s t o m e r o r L o n g - t i m e c u s t o m e r
o N o n - p a y m e n t o f g o o d s a n d s e r v i c e s s i n c e o r i g i n a l i n v o i c e
d u e d a t e n o w a g e d o v e r 6 0 - d a y s o r w o r s e , o v e r 9 0 - d a y s o r
1 2 0 - d a y s , p o s s i b l y o l d e r
 A d d i t i o n a l l y f o r a L o n g - t i m e c u s t o m e r : w h e n
e s t a b l i s h e d P u r c h a s i n g / P a y m e n t / C o m m u n i c a t i o n
p a t t e r n s t r e n d a w a y f r o m h i s t o r i c a l c h a r a c t e r i s t i c s
 R e l a t e d t o t h e C r e d i t A p p l i c a t i o n o r l a c k o f o n e
o O v e r 2 - y e a r s s i n c e l a s t u p d a t e d a p p l i c a t i o n
o A m a r g i n a l c r e d i t a p p l i c a t i o n a c c e p t e d w i t h c r e d i t l i n e s e t
o D u e d i l i g e n c e t o v a l i d a t e t h e i n f o r m a t i o n l i s t e d w a s n o t d o n e
d u e t o
 b u s i n e s s r e l a t e d c o n s t r a i n t s o r p r i o r i t i z e d a c t i v i t y
 n o r e s p o n s e t o r e f e r e n c e i n q u i r i e s c r e d i t a p p l i c a t i o n s
a r e n o t r e q u i r e d
 Y o u r O w n e r o r M a n a g e m e n t “ p u s h e d t h e s a l e ” b y a s k i n g
t h a t t h e c r e d i t a p p r o v a l p r o c e s s b e i g n o r e d f o r
w h a t e v e r r e a s o n
o c r e d i t a p p l i c a t i o n s a r e n o t r e q u i r e d
B E H A V I O R S O F A D E B T O R
 C u s t o m e r m a k e s a p a r t i a l r e m i t t a n c e
 B r e a k s t e r m s
 A v o i d s c o n t a c t
 B r e a k s f i r s t p r o m i s e
 F i n d s f a u l t w i t h p r o d u c t / s e r v i c e u p o n y o u r p a y m e n t d e m a n d
 Y o u r i n d u s t r y c o m p e t i t o r s s t a r t c a l l i n g f o r c r e d i t r e f e r e n c e s
R E M E D Y
third party assistance – Goldman, Evans & Trammell
 R e q u e s t “ D P S ” - D e b t o r P r o f i l e S e a r c h a g a i n s t a g e n c y d a t a b a s e
 R e q u e s t a n E x p e r i a n B u s i n e s s P r o f i l e R e p o r t
 R e q u e s t a F r e e F i n a l D e m a n d N o t i c e ( I F W A R R A N T E D )
85 C A L L # 4 – 3 R D (AND FINAL) C O L L E C T I O N C A L L
OFFER A PAYMENT PLAN ARRANGEMENT AS A FAIR RESOLUTION
D i a l o g u e : “ A R E Y O U W I L L I N G T O A C C E P T A P A Y M E N T P L A N ? ”
“ I a m r e q u i r e d t o r e p o r t t o u p p e r m a n a g e m e n t a b o u t y o u r
s i t u a t i o n . B u t l e t ’ s t r y t o w o r k t o g e t h e r o n t h i s b e f o r e t h a t
h a p p e n s . I f c a s h f l o w i s a p r o b l e m , a r e y o u w i l l i n g t o a c c e p t a
p a y m e n t p l a n ? W e w i l l a c c e p t a r e a s o n a b l e p a y p l a n , b u t i n
d o i n g s o I w i l l n e e d t h e f i r s t p a y m e n t n o w i n o r d e r t o g e t t h e m
t o a p p r o v e o u r s o l u t i o n . ”
 D e m a n d w e e k l y p a y m e n t s v e r s u s b i - w e e k l y o r m o n t h l y
 T h e p l a n s h o u l d n o t g o b e y o n d 9 0 d a y s
o L e n g t h i e r p a y m e n t p l a n s w i l l g e n e r a l l y f a i l , s o a v o i d i t
 I f a n i n s t a l l m e n t i s m i s s e d , t h e n t h e p l a n b e c o m e s n u l l & v o i d
6

7. *
Benjamin Franklin said, “Creditors have better memories than debtors.”
T h e n e x t a c t i o n s t e p s a r e m o s t e f f e c t i v e b e t w e e n 9 0 a n d 1 2 0 d a y s .
P l e a s e d o n o t e x c e e d 1 5 0 d a y s , e v e r . C u s t o m e r s a r e n o t a l i k e . T h e i r
v a l u e v a r i e s i n r e a l t i m e . B e w a r e o f l e t t i n g t h e p a s t i n f l u e n c e a c t i o n
t h a t y o u m i g h t n o t o t h e r w i s e d o . T h e p a s t c a n b e a w i n d o w t o t h e f u t u r e
o n l y i f a l l v a r i a b l e s r e m a i n c o n s t a n t . T h e y d o n o t ; t h e r e f o r e , e n f o r c e a
f i n a n c i a l l y r e s p o n s i b l e c r e d i t p o l i c y a n d p r o c e d u r a l a c t i o n p l a n t h a t f i t s
t h e c u r r e n t m a r k e t p l a c e a n d , m o s t i m p o r t a n t l y , k e e p s y o u r c o m p a n y
d o o r s o p e n . D o t h a t a n d y o u w i l l h a v e j o b s e c u r i t y a n d a n o t h e r
p a y c h e c k c o m i n g .
95 M A I L L E T T E R # 3
FINAL DEMAND (SEE SAMPLE LETTER)
 Y o u m u s t f o l l o w t h r o u g h o n f i n a l d e m a n d s , w i t h o u t e x c e p t i o n !
 D e m a n d s w i t h o u t f o l l o w - t h r o u g h a r e c o n s i d e r e d h a r a s s m e n t a n d w i l l
r e d u c e o r e l i m i n a t e y o u r c r e d i b i l i t y i n a n y f u t u r e , l i k e s i t u a t i o n
F
I
N
A
L
W
A
R
N
I
N
G
S
R E V I E W R E D F L A G S C H E C K L I S T
IDENTIFY THOSE ACCOUNTS WHOSE SALES AND PROFITS ARE LIKELY LOST
UNLESS THE “CUSTOMER” MAKES PAYMENT BY A FINAL DEADLINE DATE
R e d m e a n s S t o p n o t G o .
 I g n o r e s f i n a l d e m a n d n o t i c e
 B r e a k s s e c o n d p r o m i s e t o p a y
 I g n o r e s t h i r d p h o n e c a l l
 R e f u s e s t o h o n o r C O D N S F o r u n c o l l e c t e d p a y m e n t b y c a r r i e r
 R e f u s e s t o s i g n c o m p a n y p e r s o n a l g u a r a n t e e
110 P L A C E F O R C O L L E C T I O N S W I T H T H I R D P A R T Y (GET)
 C e a s e a l l c o n t a c t a n d e f f o r t ; m o v e o n t o p a y i n g c u s t o m e r s
 A g e n c y i n i t i a t e s a n a s s e t a n d l i a b i l i t y s e a r c h
 A g e n c y m a k e s o n - s c e n e p e r s o n a l c o n t a c t w i t h a p p r o p r i a t e d e b t o r s
 A g e n c y p e r f o r m s a l l t a s k s o f d e b t r e c o v e r y u n t i l c o n c l u s i o n o r
u n t i l a p r e - d e t e r m i n e d r e v i e w d a t e f o r c o n t i n u a n c e i s r e a c h e d
T
O
O
L
A
T
E
D I S A S T E R – A LIKELY WRITE OFF TO BAD DEBT
 R e f u s e s c e r t i f i e d l e t t e r s
 D i s c o n n e c t s a l l p h o n e s
 M a i l i s r e t u r n e d
 B a n k c a l l s - i n n o t e a n d l i q u i d a t e s b u s i n e s s a s s e t s
 S k i p s
 U n s u c c e s s f u l s k i p t r a c e b y t h i r d p a r t y
 F i l e s b a n k r u p t c y , a n d y o u h a v e n o s i g n e d p e r s o n a l g u a r a n t e e
7

8. A/R Timeline for Action - Dialogue and Letter Samples
C A L L # 1 – C O U R T E S Y C A L L
CALL AT 15-DAYS
“Hello, this is (your name) with (your company name) calling for (accounts payable contact [A/P
name]). Is he/she available please?
“Hello (A/P name), this is (your name) calling from (your company name). We want to thank your
company for your recent purchase. Have you received the product/service? Are you satisfied?
If “yes” – “Good. With all due respect, I want to remind you that your terms for payment are
<X-days>. Do you expect any problem with us being paid on time?
If “yes” – “Thank you. We appreciate your business. Any concerns, please contact your sales
representative. They are always eager to keep you happy. Goodbye.
If “no” to any of the questions above, then reply, “Thank you for telling me about your concern.
I will notify your sales representative to contact you immediately. Thank you again. Goodbye.
8

9. A/R Timeline for Action - Dialogue and Letter Samples
C A L L # 2 – 1 S T
C O L L E C T I O N C A L L
CALL AT 31-DAYS
Why is this considered a “Collection Call” when the invoice is only a single day beyond
net terms? This action may save tons of worry, effort and money later on. Look at it
this way: In politics this is called “Détente.” In the military this is a “Pre-emptive
Strike.” In sports this is “The Best Offense is a Good Defense.” For survival this is
“The Early Bird Gets the Worm.” In science this is “Nipping It in the Bud.” In the auto
world this is “The Squeaky Wheel Gets Greased.” In the world of parenting this is “An
Ounce of Prevention….” In the business world this is “I Get To Keep My Job.”
“Hello, this is (your name) with (your company name) calling for (accounts payable contact [A/P name]). Is he/she
available please?
“Hello (A/P name), this is (your name) calling from (your company name). I hope I’ve caught you with a
moment to spare, please?
“Good.
“(A/P name), the reason for my call is that your company has a balance due to my company of $(amount due)
regarding invoice(s) #(invoice no.). I just noticed that it has gone past due. My concern is that this might be
due to some level of dissatisfaction with the product/service you received from us. Is there a problem that I
should know about?
o If yes – solve the problem
o When agreement is reached to the proposed solution…
“Good, I’m sure the problem was just an oversight. I was concerned that this would reach 60-days. Our
company has a strict policy about credit limits. At 60-days all accounts are put on credit hold automatically. I
certainly wouldn’t want to see you experience the inconvenience of having your purchasing ability
interrupted.
“Again, thank you for your time. I appreciate your help with this and note your file here as to when we can
expect payment. Have a good day.”
9

10. A/R Timeline for Action - Dialogue and Letter Samples
L E T T E R # 1 - P A S T D U E
SENT AT 40-DAYS
Customer Contact Name
Customer Company Name
Address
City, State Zip
Dear (Principal Contact Name),
Thank you for the recent purchase/activity on your account. We recognize the importance of your business,
and look forward to being of further value to your company in the years to come.
For your convenience, I have enclosed a copy of your statement that originally went out with your
order/purchase. Referring to the statement, you will see the terms extended to your company is Net 30-days
for this transaction; however, our records indicate that payment from your company has not been received.
This means your account with us is past due.
If you have any questions regarding your account status, or account balance, or the product/service provided
to you, contact my office immediately. I will be happy to answer any question you might have. Otherwise,
please remit the balance on your account, $(amount due).
We appreciate your prompt attention to this matter and thank you in advance for your payment.
Sincerely,
(Your Name)
(Your Position)
10

11. A/R Timeline for Action - Dialogue and Letter Samples
C A L L # 3 – 2 N D
C O L L E C T I O N C A L L
CALL AT 50-DAYS
“Hello, this is (your name) with (your company name) calling for (A/R name). Is he/she available please?
-Greetings when customer gets on the phone-
“(A/R name), the reason for my call is that your company still has a balance due to my company totaling the
original invoice total and now with accrued interest $(grand total amount due). When we last spoke on (date), it
was my understanding that payment was to be sent, (specifically on date if known).
o Pause. Allow the customer to respond
o If problem is uncovered, solve it
o If problem is uncovered and you have not been able to reach a resolution, then…
“While we value our business relationship, the balance has become significantly past due. As you remember
from our last conversation, it is our policy that credit holds be put on accounts that reach 60-days. We would
very much like to keep our credit relationship with your company. Can we get this resolved today?
o Address any problems and offer a solution
o Make arrangements for payment and get confirmation of agreement
“Again, thank you for your time. I appreciate your help with this matter. By the way, who else other than
you must authorize payments/who do you report to and their title? I’ll note in my file that we can expect
payment on (date) for $(payment in full, or agreed amount).”
11

12. A/R Timeline for Action - Dialogue and Letter Samples
L E T T E R # 2 – C R E D I T H O L D O R T E R M I N A T I O N O F C R E D I T
SENT AT 65-DAYS
Customer Contact Name
Customer Company Name
Address
City, State Zip
Dear (Principal Contact Name),
While we value our business relationship, we are concerned. Your company now has an outstanding balance,
$(Grand Amount Due) (original amount due plus accrued interest).
Our company shipped your product/provided you a service in good faith. Unfortunately to date, we have not
received payment, nor have we received any notification that there was a problem with the product/service.
This lack of communication is unsettling.
Our policies were made clear to you. We regret to inform you that, due to non-payment, your open credit
account is now on credit hold status. Furthermore, your account will remain on hold until your balance with
us has been satisfied, or until you propose a suitable payment arrangement and approved by us. We strongly
urge your prompt attention to this matter and contact us immediately.
We do not take these actions lightly. It is our sincere hope that this is just a temporary delay in payment that
will be remedied quickly. We do value our relationship and its continuation is our primary goal.
Please contact me if there is anything you would like to discuss, or if there is any way I can assist in resolving
this matter.
Sincerely,
(Your Name)
(Your Position)
12

13. A/R Timeline for Action - Dialogue and Letter Samples
A T 7 5 - D A Y S
S A L E S / A C C O U N T R E P R E S E N T A T I V E I N T E R V E N T I O N V I S I T
+ C A L L Y O U R G O L D M A N , E V A N S & T R A M M E L L R E P R E S E N T A T I V E F O R A
D P S
* D P S , D e b t o r P r o f i l e S e a r c h i d e n t i f i e s i f t h i s c u s t o m e r
i s a n e s t a b l i s h e d d e b t o r w i t h o t h e r c o m p a n i e s ; i t i s f r e e .
I f p a y m e n t i s s t i l l n o t p o s t e d , t h e n …
C A L L # 4 - F I N A L C O L L E C T I O N C A L L
C A L L A T 8 5 - D A Y S
“Hello, this is (your name) phoning. Is the (Accounts Payable Supervisor, or Payment Authorizer) in? – Note: you are
no longer asking for the accounts payable contact. May I speak with him/her, please?
o Greetings when the customer gets on the phone
“Hello, (A/P Supervisor or Payment Authorizer), this is (your name) calling today to discuss the delinquent
balance your company has outstanding with my (company name). At present, your balance due is $(original
principal amount due) plus accrued interest totaling $(grand amount due). According to our records, we have not
received any payment/a partial payment, on this amount. The purpose for my call today, (A/P Supervisor or
Payment Authorizer), is to find out if this is a problem that you and I can resolve?
o Allow the customer to respond
o If cash flow related…
“I know that occasionally every company can experience a cash flow problem. I am confident that our
management team would be happy to work with you through this difficult time. We do value your business;
however, I need to have something to report to them. Would you tell me this, if you are not in a position to
satisfy this entire amount right now, what kind of payments could we come to agreement over a short time-
table?
o Agree on the shortest term payment plan you can get not to exceed 90-days
“(A/R Supervisor or Check Authorizer), I’m glad we came to an agreement. I hope you realize that we needed to
resolve this situation quickly. I’m going to restate the points of what we’ve agreed, have it documented and
faxed, or e-mailed, to you within 24-hours. Then, after you have signed the agreement and returned it to me, I
will take it to our management team to stop any further action. Additionally, I will ask to have your account
changed from credit hold to a COD basis or COD + basis. At least then, you’ll be able to get our product
again while you are fulfilling our agreed payment arrangement. Fair? Good, I’ll have this agreement to you
as soon as I can. Once you receive it, please send the signed copy back to me ASAP as we discussed. Okay?
Thanks again. We’ll talk again, soon.”
13

14. Final Demand Letter - Composition Sample
L E T T E R # 3 – F I N A L D E M A N D
SENT AT 95 DAYS
Customer Contact Name
Customer Company Name
Address
City, State Zip
Dear (Principal Contact Name),
This is a final warning. Your company now has an outstanding balance, $(Grand Amount Due) (original
amount due plus accrued interest).
This amount due has reached 90 days aging. Since this is the third time you have been notified by mail, along
with multiple phone calls, to pay, we must demand payment-in-full, now.
If payment is not received in our office by the close of business on (5th
or 7th
or 10th
day from today), this matter
will be referred to our collection agency, Goldman, Evans & Trammell. Be aware, you may be liable for
additional charges, costs of collection and other legal costs as provided in our credit agreement. *
To avoid damage to your credit rating and retain an ongoing business relationship with our company, I
strongly urge you to resolve this issue immediately. You will not receive any further notice with regards to
this debt, nor will any person at our company engage further discussion on this matter if this payment is not
received by the dead line date.
Sincerely,
(Your Name)
(Your Position)
* You may access collection costs, and added attorney costs for suit only if (1) your credit application or contract
makes provision for it, if (2) an officer or principal member of the debtor-company signs either of those
aforementioned, and (3) if it is legal in your state. Furthermore, this final demand letter is a one-time only notice.
Notifying a debtor more than once of a final demand letter will result in a write off situation, including a possible
charge of harassment by the debtor.
N O P A Y M E N T P O S T E D A T 1 1 0 - D A Y S ?
SEND DEBTOR TO GOLDMAN, EVANS & TRAMMELL FOR COLLECTION
MOVE ON FROM THIS NON-PAYER, TO YOUR PAYING CUSTOMERS!
14