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  Credit and Collection Letters

  Model Letters and Guidelines for Dealing with Credit Issues and Collecting Your Money

  Nothing captures the attention of a reader so much as money issues—their money or yours. Whether depositing, withdrawing, lending, or borrowing, you want to make sure you provide all the facts.

  When you have borrowed money, assure the reader that you intend to repay the money owed, even if that becomes necessary under altered terms with lesser amounts or over a longer period. Although many people consider their financial situation confidential, you will do well to explain your current difficulties to those who are lending you money. They consider explanations a show of good faith. Another way to motivate creditors to work with you during difficult times is to remind them about past business you’ve given them and state your intention to again do business with them under better conditions.

  When requesting a loan, give a full explanation of how you intend to use the money and state your plans for repayment. Be specific as to your calculations for where the money will come from to repay the loan. And even when addressing friends or family, use a businesslike, not a flippant or pleading, tone to convey your sincere need of the money and your firm intention to repay the money.

  When refusing a loan to friend, remember that you are not obligated to give a reason—although doing so makes your refusal sound less arbitrary and more thoughtful. For example, these statements may seem firm, yet less harsh. “I feel uncomfortable in making personal loans for any reason to anyone.” “I’m not financially in a position to make loans to anyone.” “My spouse and I have made a personal commitment to each other never to lend money to a friend or a relative because of the hard feelings that inevitably develop around such circumstances.” “My own job is rather unstable.”

  When refusing a loan, however, do express your understanding of the need for the money. Often times, when the requester hears a “no,” he or she thinks that you are saying “no” simply because you don’t earnestly see the need as critical or urgent. Consider these comments: “I understand how much you need the money.” “I can understand the difficulty of the situation.” “You have cause for concern. I see your predicament.” “A couple thousand dollars, I know, would make a big difference in your situation. I understand that.”

  Try to use positive phrasing with your turndown: “I’m afraid I simply can’t make such a loan. I need all my available resources to handle my own commitments.” “I wish I could help in this incident, but I can’t.” “I wish I had the extra money for situations like this, but I just don’t. We live on a limited income ourselves.”

  Instead of focusing on what you’re not going to provide, focus on your own needs/plans for the money or your own positive philosophies about personal loans.
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  “I myself have similar commitments that will require all my available cash. We plan to spend any excess cash above our expenses this year on X.”

  End with a goodwill statement about the outcome of the situation or resolution of any problem. “I do hope you can resolve the issue.” “I’ll hope to hear that you’ve been able to handle the situation on your own.” “I hope you’ll understand. I do value our relationship and want what is best for both of us.”

  In delicate matters such as lending, borrowing, and collecting, tone becomes very important in reaffirming commitments and in keeping any personal relationship in tact.

  On other miscellaneous matters of banking, finance, and taxes, summarize your message succinctly without irrelevant detail: What do you want your reader to know or do? Include all necessary dates, account numbers, amounts, full names, form or receipt numbers so they can investigate your history and situation with ease. The image that you create in your writing style and with your thoroughness often makes an impression that spills over into the business transaction and decision itself.
• About the Author
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  Dianna Booher’s extensive and ongoing research and published works in the field of business communication and productivity serve as the foundation for over 40 books on communication skills training . Dianna has received the highest awards in the professional speaking industry, including induction into the CPAE Speaker Hall of Fame®. She is a member of the prestigious Speakers Roundtable. As a result of Dianna's work among top corporations on communication issues, Executive Excellence magazine has recognized Dianna on its list of the Top 100 Thought Leaders in America. Additionally, Successful Meetings magazine named Dianna on its list of 21 Top Speakers for the 21st Century! Dianna has been interviewed by Good Morning America, CNN, CNBC, USA Today, the Washington Post, New York Newsday, Los Angeles Times, Chicago Tribune, Wall Street Journal Radio, National Public Radio, Bloomberg, Investors Business Daily, Fox Family Network, Reader's Digest, Working Woman, Industry Week, McCall's, Cosmopolitan, Success, Entrepreneur, among other national radio, TV, and newspapers. She holds a master's degree in English from the University of Houston.

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