CREDIT NOTICE DEMAND LETTER

CREDIT NOTICE is the first step in resolving the vast number of unpaid balances that can result from both proforma and open account sales. It is an easy and inexpensive means of collecting past due balances and recognizing invoice disputes. CREDIT NOTICE makes the customer take action.

If your business is like many others in our industry, then it’s likely your accounts receivable contain a significant number of past due balances. Even proforma accounts can end up with unpaid balances for freight or other such charges. Now there is a way to recover a significant number of these debts in an easy and cost effective manner and without using overly aggressive collection techniques (sometimes the customer is right)!

While traditional collection letters do work, they usually are one-dimensional and threatening. Our CREDIT NOTICE is a third-party notification that reminds your customers of their obligation and at the same time informs them that your payment experience with them is available to other companies through your participation in CREDIT LINK. The aim is to remind, inform and generate a response from the customer.

All contact with the customer, whether it be at the time of sale or in the course of trying to collect an invoice, is of equal importance in developing a long-term relationship. CREDIT NOTICE contains a response portion that encourages the customer to reply immediately to your request for payment. This initiation of dialogue between you and your customer will facilitate payment and/or the resolution of any disputes.

WHAT DOES IT DO?

  See a Sample Letter for XYZ Furnishings Inc below:

ABC Designs Inc                                                                           September 1, 2009
123 Main Street
New York, NY 10001

Dear Customer,

XYZ Furnishings Inc. is a member of CREDIT LINK, an information exchange for the wholesale home furnishings industry provided by Credit Link LLC Our over three hundred member trade companies have access to a variety of services including central credit clearing.

Your account (#123456) with XYZ Furnishings Inc. is past due. As of September 1, 2009 XYZ Furnishings Inc. shows a total outstanding balance of $1,114.27 for the following invoices:

Order Number	Invoice Number	Invoice Date	Balance Due
111 222 333	I123 I456 I789	2/2/2009 3/5/2009 4/1/09	$500.27 $314.00 $300.00

To avoid further collection measures, and the possibility of having your credit affected with our members, please complete the bottom portion of this letter and fax or mail to the number/address listed below.

Thank you for your immediate attention to this matter.
______________________________________________________________
XYZ Furnishings Inc                                                                 Account # 123456
789 Main Street
New York, NY 10010
Attn: Accounts Payable
Phone: 212-555-5555
FAX: 212-555-6666

(Check One)

__ The invoices have been paid by check number(s) _______, dated __________
(If more than thirty days have passed, please provide a copy of the front and back of the canceled check)

__ The invoices will be paid by (date) _________________
(Include the invoice number(s) or a copy of this notice with your payment)

__ No payment is due because: ________________________________________
__________________________________________________________________

Signed: _______________________ Name (printed): ____________________