{"id":31976,"date":"2022-03-22T12:53:30","date_gmt":"2022-03-22T04:53:30","guid":{"rendered":"https:\/\/zegal.com\/letter-of-demand-second-reminder\/"},"modified":"2024-08-20T15:16:45","modified_gmt":"2024-08-20T07:16:45","slug":"letter-of-demand-second-reminder","status":"publish","type":"page","link":"https:\/\/zegal.com\/en-nz\/letter-of-demand-second-reminder\/","title":{"rendered":"Letter of Demand (Second reminder)"},"content":{"rendered":"

Essentially, a Letter of Demand (Second reminder) is an important letter to have in any small business\u2019s arsenal. Notably, as a small business, managing cash is an important part of day-to-day operations. Additionally, instilling a smooth workflow to communicate reminders of overdue payments ensures a collections process that is effective and efficient.<\/p>\n

Firstly, a formal and process-driven set of communications using well-written templates goes a long way to ensure that you can collect payments in a courteous and timely manner.  Secondly, the Notice of Overdue Payment letter can also be called a Collections Letter, Letter of Demand, or a Past Due Invoice Letter.<\/p>\n

<\/span>What is in a Letter of Demand (Second reminder)?<\/b><\/span><\/h2>\n

In essence, a short, crisp and factual letter is key. Additionally, one that is sent out on a regular basis and using a standard process. Importantly, this can take much of the emotions out of the collections process.  Therefore, ensure you have the following:<\/p>\n

Contact Details of the Customer<\/b> \u2013 Include at least the address, telephone number and the email address.<\/p>\n

Amount Overdue <\/b>\u2013 The amount that needs to be paid by the customer.<\/p>\n

Invoice Reference <\/b>\u2013 It is always good to refer back to the invoice in question and mention the date in which it was raised to increase the sense of urgency.<\/p>\n

Your Contact Details<\/b> \u2013 Always give the customer as much information as possible to contact you to help resolve the issue.<\/p>\n

<\/span>When Should You Use a Letter of Demand (Second reminder)?<\/b><\/span><\/h2>\n

Generally, a formal notice can be sent any time after the invoice is past due. Additionally, make sure that there is a process of escalation if you don\u2019t receive payments after 2 or more attempts at contact. <\/p>\n

<\/span>How long do settlements take?<\/b><\/span><\/h2>\n

The time required to fulfill a settlement can vary from case to case. However, on average it takes around 2-6 weeks for all parties to talk things through and come to an agreement. A settlement can consist of multiple steps including getting signatures, processing cheques, and others and so it takes some time to execute it completely.
\nConclusion<\/b><\/p>\n

A proper and courteous letter when payments are past due will always help to keep a cordial relationship with the customer.  Use this handy letter as the first step in collecting.  Ensure that you have a series of escalating letters if payments have still not been made.<\/p>\n

<\/span>You Might Also Like<\/span><\/h2>\n

Along with this document, make sure you see these other templates in our library:<\/p>\n

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