Debt recovery is a necessary step to ensure the financial resources of the enterprise. Accompanying the necessary activities to force the debtor to pay, the enterprise also needs to send debt collection letter with clear content and can facilitate the debt recovery stage period later can achieve the best results. Let’s find out with TNTP in the following article.

1. Summary of the case

Before starting to offer the debtor to pay, the enterprise needs to clearly present the content from the beginning of the contract/agreement to the arising of the current debt. This is very necessary in case a debt has been protracted and the parties do not regularly exchange and reconcile debts, because each party has many different partners and customers, so the detailed management of debts, as well as the amounts incurred and deducted, if not listed in full and in detail, it may lead to confusion about the amount required by the debtor to pay.

At the same time, the summary, and statistics of the entire process of contract performance as well as debt arising easily bring the goodwill of the debtor when realizing that the other side has had details and clarity in requesting payment.

2. Provide specific and accurate data with evidence

A debt collection letter but giving figures without evidence will hardly have any value to make the debtor “concern”. One of the important principles is that when giving any money, enterprise need to provide enough information and documents to ensure accurate and grounded data. The fact that the enterprise makes a payment request with sufficient grounds for payment, as well as with clear evidence, will prevent the debtor from giving reasons for refusing the payment or reasons for not admitting it. In addition, giving full information and data of the debt also helps the debtor to easily compare their data, thereby helping the debtor to make the payment without taking much time to re-check the debt.

3. Provide a timeline to request the debtor to pay

In a dialogue, when one party has asked a question, the other party must also respond or respond before the two parties can actually conduct the exchange. Similarly, in the case of a business sending a debt collection letter with the purpose of asking the debtor to pay, it will also need the debtor to also have a specific response. But in debt situations, the debtor will often take a “silent” attitude or try to prolong the response time as long as possible to delay payment of the debt. Therefore, in a debt collection letter, there must be a specific timeline to request the debtor to give a response, or to make the payment of part or all of the debt value. Giving a specific time will make the debtor be forced in terms of time and at the same time help the creditor be proactive in terms of time instead of passively waiting for the cooperative attitude with the unfaithful debtor. payment.

4. Take necessary legal measures if the debtor fails to pay on time

In order for the enterprise’s debt collection letter to have weight, in addition to the content of the request must be clear and precise, the enterprise must also show pressure on the debtor when giving a specific time to force the debtor to have to pay. And informing the debtor that the business will absolutely take the necessary legal measures is a must.

Legal measures include: Sending a Complaint to a competent dispute settlement agency; or use debt collection services from law firms. These are measures to ensure the provisions of the law and have a deterrent value, forcing the debtor to consider and under pressure if he does not pay in full and on time.

Initiating lawsuits at competent agencies will ensure the rights and interests of enterprises when agencies can use state power to force debtors to perform payment obligations. At that time, in addition to pressure from creditors, the debtor will have to face state power and be forced to choose to properly perform its payment obligations or will be subject to sanctions in accordance with the law.

If enterprise use professional debt collection services from law firms, it will also bring a lot of benefits and even help save time and costs to collect debts. Law firms with a team of knowledgeable lawyers can conduct negotiation or other legal measures much more effectively than enterprise conducting debt collection on their own.

Above are TNTP’s advice on what enterprise need in a debt collection letter. Hope the above content brings value to enterprise.