This document outlines the process for writing dunning letters to collect overdue payments from buyers. It recommends starting with reminder letters accompanied by invoices, then progressing to more direct inquiry and discussion about any issues with the order if no payment is received. The final stage involves appealing to the buyer's sense of responsibility, and threatening legal action if last attempts do not result in payment. The goal is to collect payment owed rather than quarrel with the buyer, and offensive language should be avoided throughout the process.

1. OR
DUNNING LETTERS

2.  SOME BUYERS DELAY THE PAYMENT BEYOND
THE COLLECTION DATE THEN IT IS THE DUTY
OF THE COLLECTION DEPARTMENT OF THE
SUPPLIERS ORGANISATION TO COLLECT THE
DUES.
 THEN THE NEED TO WRITE COLLECTION
ARISES.
 IT MUST BE REMEMBERED THAT THE NEED TO
WRITE THE COLLECTION IS TO COLLECT THE
DUES AND NOT TO QUARREL.
 OFFENSIVE LANGUAGE SHOULD NOT BE
USED.

3.  AFTER THE LAST DATE FOR RECEIPT OF
PAYMENT IS OVER,THE SELLER WAITS FOR A
FEW MORE DAYS BEFORE WRITING THE
COLLECTION LETTER.
 IN THE BEGINNING LETTER SHOULD BE IN THE
FORM OF REMINDER AND ACCOMPANIED BY
COPIES OF INVOICE ONCE OR TWICE.
 EVEN THEN IF THE BUYER IS NOT MAKING THE
PAYMENT THE TONE OF THE LETTERS MAY BE
HARDENED.

4.  REMINDER STAGE.
 ENQUIRY AND DISCUSSION STAGE.
 APPEAL AND WARNING STAGE.

5.  IN THIS STAGE THE COLLECTION DEPARTMENT
WILL ENQUIRE IF THERE WAS ANY COMPLAINT
IN THE EXECUTION OF THE ORDER.
 THE SELLER ALSO ENQUIRES INTO ANY
FINANCIAL DIFFICULTIES THE BUYER MAY BE
FACING.
 THE SELLER MAY SUGGEST THAT THE BUYER
CAN MAKE THE PAYMENT IN INSTALMENTS.

6.  INTHIS STAGE AN APPEAL TO THE BUYER’S
SENSE OF RESPONSIBILITY IS MADE.A LETTER
MAY BE WRITTEN TO HIM TOREALIZE HIS
MISTAKE AND THE DIFFICULTY CAUSED THE
SELLER.
 AGAIN IF LAST ATTEMPT GOES WITHOUT
RESULT SELLER HAS TO TRY THREATENING
LEGAL ACTION