5 Keys to an Effective Demand Letter

Business-to-business commercial collections in Houston

When your numerous calls and letters go unanswered, it’s time to involve a recognized commercial debt recovery firm. An official demand letter from a professional, recognized collections agency shows your seriousness and the potential for litigation if a voluntary pay agreement isn’t reached. At Alexander, Miller & Associates, we will work with you to craft a demand letter that gets results.

Confusing your debtor with a letter that is too long or unclear could hinder successful repayment. Get to the point and write in a concise manner while avoiding jargon. This will clarify the urgency of the situation and hopefully yield a positive result. When sending out an official demand letter, keep in mind the following 5 components:

  1. Emphasize that other forms of communication have been exhausted. Underline the frequency in which your business has tried to contact the debtor. You should also have a record of each of these contact points.
  2. Make the possibility of litigation very clear. Normally, a debtor is given 10 days from the receipt of the demand letter to resolve their debt. Whatever your terms are, make it unequivocally clear that a lawsuit is imminent.
  3. Give them the opportunity of alternative payment solutions. Sometimes businesses are unable to pay due to current financial hardship, but will be capable of payment in the future. Knowing that they have the option for a payment plan could encourage them to negotiate terms, rather than continuing to avoid you.
  4. Give them the opportunity to deny the debt. A response, even a negative one, is helpful. It confirms that the person you’re reaching is indeed the right one to speak to about recovery. At that point, a private investigation might be valuable to determine the possibility of successful litigation.
  5. Put your deadlines in writing. Support your legal claim with the chronological facts: when the debt was incurred, when you contacted them for collection, etc. Then be sure to give deadlines on when you must see a response before litigation begins.

Alexander, Miller & Associates utilizes a series of legal demand letters and collector efforts to assist in the collection process. Our 60 years of collection agency experience ensures the highest success rate.