Creditor-is anyone who lends money or who sells goods or services on credit. A creditor may be a country, province, bank, financing company, or an individual.Debtor-is anyone who borrows money or who buys goods or services on creditCapacity to meet obligationCapital or wealth, capitalized asset must greater the liabilityCharacter-applicant’s reputation, moral conduct, honesty and sense of fair play.
Writing collection letters is an uncomfortable task for many managers because you have to strike a balance between gently reminding the customer of their overdue payment while still being firm enough to achieve the desired result – the settling of the late account. The secret behind writing a good collection letter is to always take a positive stance and not to automatically assume malice on the part of the customer when they are late with their payments. The tone of the letter should be professional, direct and to-the-point without being accusatory; since the implicit assumption is that the customer is willing to pay. If the initial letter fails to elicit the desired response, subsequent letters can be more firm and direct.The initial collection letter should begin with a reminder to the recipient that they have an overdue account that they need to settle. You should mention the amount of the unpaid bill and the date by which you would like it to be settled. The letter should also state that the receiver should ignore the notice if they have already sent the payment. You may end by thanking the customer for their prompt action in resolving the problem.If initial notices do not work, in subsequent letters you can state that you may have to take legal action for redress if the bill is not settled by the soonest possible date, or that you will cut off the service that is being provided if payment is not given by a certain date. But this should be used only as a last resort, when the customer is already several months behind with their payments.Below is a sample of a collection letter that you can adapt for your own use.
A memorandum (abbrev.: memo) was from the Latin verbal phrase memorandum est, the gerundive form of the verb memoro, "to mention, call to mind, recount, relate", which means "It must be remembered (that)...". It is therefore a note, document or other communication that helps the memory by recording events or observations on a topic, such as may be used in a business office. The plural form of the Latin noun memorandum so derived is properly memoranda, but if the word is deemed to have become a word of the English language, the plural memorandums, abbreviated to memos, may be usedTo persuade to action (we should do this)To issue a directive (do this)To provide a report (here’s what was done, or here’s what we found out)
Order, credit, and collection messages
OR D ER , C R ED IT, AN D C OLLEC TION MESSAGES
PRESENTED BY : ABNER B.
PROF. DR CARINA BELEN GARCIA
A n o r d e r l e t t e r i s a l s o k n o w n a s a P. O o r
p u r c h a s e o r d e r l e t t e r .
T h e o b j e c t i v e o f a n o r d e r l e t t e r i s t o p r o v i d e
t h e v e n d o r w i t h d e t a i l e d i n s t r u c t i o n s f o r
f u l f i l l i n g a n o r d e r . O r d e r l e t t e r s a r e v e r y
i m p o r t a n t i n a n y b u s i n e s s . W r i t i n g o r d e r
l e t t e r s a r e b o t h a s c i e n c e a n d a n a r t . T h e r e
a r e o b v i o u s l y m a n y d i f f e r e n t w a y s t o w r i t e
o r d e r l e t t e r s , b u t t h e i d e a l a p p r o a c h f o r y o u r
c a s e d e p e n d s o n c o n d i t i o n s a n d s i t u a t i o n .
C r e d i t L e t t e r
Credit comes from the Latin verb credo which means “I believe.”
this indicates the seller’s faith or belief in the buyers ability to pay for the
goods that have been delivered to him. Credit to the individual who seeks
it is simply a device by which he may have something now and pay for it
later.to the businessman who must decide whether or not to grant it,
credit is an estimate of individual’s ability and willingness to pay later.
Although credit increases sales volume, the seller or creditor, runs the
risk of losing due to unpaid debts. It is, therefore, essential that the
creditor evaluates the debtor’s ability to pay.
C o l l e c t i o n L e t t e r
Most businesses find that phoning rather than writing results in faster payment. But as
more and more companies install voicemail systems, you may sometimes need to write letter
when leaving messages doesn’t work.
Collection letters ask customer to pay (as they have agreed to do) for the goods and services
they have already received. Good credit departments send a series of letters. Letters in the
series should be only a week or two apart. Waiting a month between letters implies that you’re
prepared to wait a long time-and the reader will be happy to oblige you.
Early letter are gentle, assuming that the reader intends to pay but has met with temporary
reverses or has forgotten. However, the request should assume, that the checks has been
mailed but did not arrive.
Middle letters are more assertive in asking for payment. Other middle letters, offer to negotiate a
schedule for repayment if the reader is not able to pay the whole bill immediately, may remind
the reader of the importance of a good credit rating (which will be endangered if the bill remains
unpaid), educate the reader about credit, and explain why the creditor must have prompt
Late letters threaten legal action if the bill is not paid. Under federal law, the writer cannot
threaten legal action unless he or she actually intends to sue.
MEMORANDUMThe office memo
The word “memo’’ is a short for “memorandum’’ and it is a short “note’’
passed in an office. Memos are short reminders, quick announcements, or concise
pieces of information. Memos are the communication lifeline for inter-office
correspondence (rapidly being replaced by e-mail). When you used the memo
format, be sure you’re not trying to communicate something of vital importance.
Memos tend to be given less attention and import than correspondence written on
company letterhead. Memos should also be used sparingly for communications
outside the office. When writing to colleagues, customers, clients, vendors, or
others, you should use the more formal business letter format.
There is no rule carved in stone about how to set up the format of a memo.
But you should pick one format and stick with it. The top of the paper should
contain four pieces of information: the date, the recipient, the sender, and the
subject matter (“RE’’ means “regarding’’).
REFERENCE: ROBERT W. BLY-THE ENCYCLOPEDIA OF BUSINESS LETTERS,
BASIC ELEMENTS OF MEMORANDUM
• Heading. Every memo should be identified by the heading “MEMO’’ or “MEMORANDUM,’’
typed in capitals and centered at the top of the page.
• Date. The date should indicate when the memo was sent, not when it was written. If the
information in the memo changes before the memo is sent, the content should be adjusted
and the date changed, if necessary. As with letters, the date should not be abbreviated.
• The Addressee’s Name. In a memo, it is usually not necessary to use a courtesy title like
“Mr.”or “Dr.’’ with the addressee’s name. you should include a courtesy title only if you would
use the title when speaking to the addressee in person. In many organizations the accepted
form is the addressee’s first initial and last name ( e.g., “A. Domingo).
• If the memo is being sent to an entire group of people (e.g., department heads, sales
representative), simply indicate the category on the addressee line. If the memo is going to
a large number of people who do not fit into an easy category, put the words “See
distribution list,’’ or simply “Distribution’’ accompanied by an asterisk, on the addressee line
and list the names of all the addresses below the body of the memo (see Figure A-4).
BASIC ELEMENTS OF MEMORANDUM
• The Sender’s Name. Use the same format for your name as you do for the addressee’s
name, minus any courtesy titles. If the recipient does not know you, or if it would be
helpful to add the weight of your position in the organization, include your department
and/ or your personal title (see Figure A-4). A memo doesn’t contain a signature line, but
you may add your initials next to your name on the “FROM” line.
• The Subject of the Memo. The “SUBJECT” line helps the receiver identify the nature of
your message quickly and makes it easier to file the memo. Try to keep the subject line
brief. Instead of saying “Results of the survey you requested on customer satisfaction,”
simply type “Results of customer satisfaction survey.”
• Style. The style of most memos is short and to the point, although they should never be
so brusque as to seem rude. Memos don’t contain a salutation or complimentary
close, and it isn’t necessary to begin or conclude with the kind of niceties (“It was good
to see you yesterday”) you might use when writing a letter. It’s likely that the recipient of
your memo is a busy person who will appreciate receiving just the necessary facts.
BASIC ELEMENTS OF MEMORANDUM
The body of a memo should resemble a letter in
appearance: single-spaced, with blank lines separating
paragraphs. The same sort of lists and headings that are
appropriate in letters can be used in memos. Ideally, the
memo will be no longer than one page, since lengthier ones
may not get the kind of full reading you want. If your memo
does require an additional page, the second page should be
headed just like that in a letter. Other elements that can be
used in business letters (reference initials, copy lines,
enclosure line, etc.) are also appropriate in memos.