Q. I have to write a collection letter to a customer who’s been with us a long time, and who usually settles his account late. Recently, it’s been getting harder to collect from him. He’s a major account and I don’t want to lose him, but I can’t pay my bills when he doesn’t pay his. How do I handle this? —Bob T.

A. If you haven’t done so already, call him personally and talk to him. Try to work out an arrangement that you both can live with, and let him know the problem has become serious. Ask him if there’s something you can do to help resolve this, like sending the bill during a different time of the month, or sending it directly to his accounting department. Mention that your new policy is to delay shipment of any product until the previous bill has been satisfied.

If you do have to resort to letters, start out gently, and build urgency gradually. Unless you think this customer will be a growing problem and you’re better off without him, keep the customer’s good will in focus as you get more demanding. A good source of ideas for collection letters is a helpful book by Rosalie Maggio: How to Say It (Prentice-Hall). She advises:

• Make the tone of your letters optimistic, appreciative, confident, face-saving, respectful, fair, business-like.

• If you’re calling in an overdue loan from a friend or relative, it’s especially important to help the person save face: “I know how busy you are…I wonder if you forgot about…Am I mistaken, or did we agree that you’d pay the loan by September 1?”

• Summarize key information: customer’s order number, date of purchase, items purchased, your invoice number and date, dollar amount past due and original due date.

• Name a specific date you expect payment (never say, “…as soon as possible.”) and allow enough time to give the customer a chance to pay.

• Suggest a special payment plan if you can.

• End the letter with a strong, definite request, and a statement that says to ignore this letter if the bill has already been paid.

• Before you start the letter series, consider sending duplicate statements that say, “Past Due” or “Second Notice.” Plan a series of four, or six letters if necessary—each one politely but firmly raising the stakes if the bill isn’t paid:

-- Send a gentle, friendly letter calling attention to an amount that’s overdue, and how long it’s been overdue.

--Firmly remind the customer that you still haven’t received payment. Suggest face-saving reasons (bill was overlooked, was lost in the mail, customer was away.)

--Give good reasons for the customer to pay the bill: protect credit and reputation; it’s a matter of fairness, justice, conscience, pride, self-respect, etc.

--Propose a choice of payment schedules such as weekly, monthly, or two lump-sum payments.

--Become increasingly stern: you carried out your obligations, and now they must carry out theirs; the amount is too small to risk their credit rating or being placed on your delinquent list; they don’t wish to be reported to the trade credit bureau; they don’t want to jeopardize future orders.

If you’ve decided the customer is deliberately choosing not to pay, say you’ll have to take action if they don’t respond by a specific date, such as turning the account over to a collection agency or a lawyer for legal action. (If you’re serious about legal action, get advice from your attorney about the wording.)

--Say you now believe the customer will pay the account only if forced to, and that you are transferring the account to a collection agency or a law firm you name. At this point, the letter is simply a statement of the action you’re taking.

What Not to Say

There are some things you shouldn’t say:

• Don’t threaten a collection agency or legal action until you’re actually ready to do so.

• Avoid negative words and phrases: you failed to respond…you ignored… your careless disregard…insist…demand. Don’t insult the person.

• Don’t act superior: “We’re at a loss to explain why someone with such a good credit rating would…”

• Don’t say anything that could be considered libelous.

• Don’t use bad language, name-calling, bullying, sarcasm, or arrogance. (This makes you the bad guy. Never send a letter you wouldn’t want printed in tomorrow’s newspaper.)

Check Maggio’s book; she has more than 200 words, phrases and sentences that can guide what to say: Examples:

“Cooperation…misunderstanding…concerned…overlooked”

“…how we can work together to…we haven’t heard from you…we’ll be obliged to…”

“You’re a much appreciated-customer, and we hope there is no problem.”

“Please give this matter your immediate attention.”