A prompt reminder of when money is due exemplifies good business practices that can save a company lost revenue and wasted time. Providing customers with a straight-forward confirmation of recent discussions and/or negotiations, such as the ‘Promise to Pay’ letter, creates the continuity needed to support your rights in the event the customer fails to pay what is due.

Remember, your statements and letters, when referencing unpaid balances, should also contain a reaffirmation of the agreed terms such as: “Our terms are net 30 days. Any amount not paid when due will incur interest of 18% per annum (1.5% per month). Should balances not be paid timely and it is deemed necessary to employ an outside collection agency and/or an attorney, Customer is liable for all actual collection fees, all actual attorney fees, plus all court costs’.

Business people intent upon diminishing your rights, or looking for an excuse not to pay what is due you, will suffer from ‘subjective memory loss’. Your job is to make sure their memory does not fail them or you!

	Acrobat(.pdf)	MS Word(.doc)
First Past Due Letter
Second Past Due Letter
Third Past Due Letter
Final Demand for Payment Letter
Confirmation of Payment Plan
Confirmation of Promised Payments
Disputed Claim Settlement Agreement
Sample Personal Guarantee
Sample Bank Request
Settlement Letter
Settlement Agreement With Terms And Personal Guarantee
Sample Credit Agreement
Mutual General Release
Past Due Payment Reminder
Credit Application Renewal Notice

Protect your profits during the ‘work process’ by documenting significant events such as changes to the original order. The following forms are just a few ideas and suggestions that can support your rights in the event the customer ‘forgets’ what instructions were provided or what was agreed to.

	Acrobat (.pdf)	MS Word (.doc)
Alteration and/or Change Order Request Form
Late Receipt of Materials Acknowledgment Form
Rush Order Request Form

You have completed all work. The customer accepted delivery and it’s time for you to be paid; but, WHERE’S THE MONEY? Following up with customers on a timely basis affords creditors the best chance of successful results. Here are just a few ideas that can facilitate your internal collection process.

	Acrobat (.pdf)	MS Word (.doc)
Debt Settlement Agreement With Terms
Debt Settlement Agreement
Installment Promissory Note
Payment Agreement
Personal Guarantee
Request for Extended Credit Terms
One Time Credit Card Payment Authorization

This publication is designed to help business people determine a common-sense strategy for financial success through the development of sound yet practical account receivable practices and policies. The objective is to help you get and keep the money due to you without having to try and catch it.

Common Sense Strategies for Better Accounts Receivable Management (PDF)

All letters and forms are Adobe Acrobat files (.pdf) and/or Microsoft Word (.doc). Feel free to alter to your needs.

You now have the tools to

Know Your Customer.