Collections Letter Invoice Template is a key component to the efforts of a Vendor, Contractor, or Collection Agency seeking to obtain payment for a transaction or purchase that has already occurred but remains delinquent with that Vandor or Contractor.  Usually, when an account becomes delinquent with non-payment a notice or collection letter must be sent from the Vendor to the Debtor. Naturally, what is expected of the Debtor will depend upon how many times a collection has been attempted and how likely it will be obtained in the near future. In either case, a clear-cut invoice listing exactly what must be paid for should be dispensed with the collection letter being sent.

How to Write in PDF and MS Word

Download: Adobe PDF & Microsoft Word (.docx)

Step 1 – Save The Invoice That Must Accompany Your Collection Letter

The paperwork you will need to accompany your collection letter should be obtained using the buttons under the image or the links introducing this portion of the page. For our goals, select either the “Microsoft Word (.docx)” or “Adobe PDF” file you want to work on by selecting the appropriately labeled button (or link).

Step 2 – Identify The Vendor Or Agent Seeking The Delinquent Payment

The Entity sending this may be the one who has provided the products and services that have yet to be paid for or one who has purchased a delinquent account. In any case, the Payee, or the party expecting to receive payment, must be documented at the beginning of this document. This act will indicate who the Recipient of this invoice must direct his or her payment to. Find the “Company Name” text box then furnish the legal “Company Name” of the Payee in place of the current text label.  The first line underneath the box, “Name,” refers to the Vendor or Collection Employee responsible for this document and securing the Recipient’s payment. Place the full “Name” of this person on this line. The mailing address where the Payee would expect paper correspondence or payment will need to be input using three separate lines. The Payee’s first address line is required in “Street Address.” This should be composed of either P.O. Box information or the building/street/suite number in the Payee’s mailing address.

The second address line of the Payee will be split down two blank lines so that you will need to name the “City, State, Country” of this address on one line and the Payee’s “Zip Code” on the one that follows. A traditional form of contact that often accompanies the mailing address of an entity is its business telephone line. Input this “Phone” number on the next blank line. This invoice will also seek to display the Payee’s “E-Mail” address for the Customer. If this is available, then record it on the last line of this section.  

Step 4 – Name The Debtor Through This Document

The Collection Account being targeted will need to be presented by the “Name” of its holder. This is the entity or person who has now come under collection efforts and is expected to submit an immediate payment in response to this document. Declare the full legal identity of this entity (person or business) on the line attached to the word “Name” under the heading in bold (“Bill To”). This will be the Payer of the owed funds. Complete this section of the invoice with the Payer’s official billing address. Report it on the next lines (“Street Address,” “City, State…,” etc.) following his or her “Name.” Make sure this information is up-to-date and accurate since it is imperative to the efforts of this invoice that you fully identify the Payer being targeted.  

Step 5 – Account For The Service Or Received Products Requiring Payment

The Payer of this invoice will likely require a summary for review that will leave no question as to what services and which products were ordered by him or her and now must be paid for. The “Description” area of this invoice will accept a report on this and has been set so that a wide scope of topics may be discussed in its contents ranging from the dates of work that require payment, to a detail of the merchandise ordered, to an account of billable supplies, or even the details of a membership or services/products package. It will be important that you use this space wisely so that your presentation of why the Payer is under collection is not difficult to understand but comprehensive and definitive. For instance, if one or more previous invoices have been issued then record the unpaid invoice number(s) with their title information  The “Amount” under collection is the next item you must produce. Supply this in the area immediately to the right of the “Description” you completed and underneath the column designation “Amount.” In addition to the amounts you entered, it is a usual consideration to also deliver the sum of all the owed amounts above and confirm the full payable amount you reported. This summary should be placed in “Subtotal.” Depending on what has been ordered/purchased and where the transaction occurred, the Payee or Collection Agent may need to add taxes to the “Subtotal.” If so, report the full amount of taxes expected from the Payee in the “Tax” box. Lastly, the “Subtotal” and “Tax” values must be combined to one figure. Add them to one another then document the result in “Total.” 

Step 6 – Impose A Strict Deadline And Produce Any Additional Topics For Discussion

The statement concluding this table directly applies to the “Total” that is expected. Beginning with the words “Payment Is Due…,” it will only require that you record precisely how many days the Delinquent Account may have to be rectified with payment lest it is subject to penalties. The blank line attached to the “#” will expect this entry. If there are any “Special Instructions Or Comments” then utilize the last couple of lines to either deliver them or name the attachment(s) containing such information.  

How to Write in MS Excel

Download: Microsoft Excel (.xlsx)

Step 1 – Download The Spreadsheet Invoice Used For Collection Efforts

Locate the button bearing the Excel icon and the word “Excel.” Use this to access the spreadsheet invoice and download the paperwork to your machine. Another convenient option is to select the “Microsoft Excel (.xlsx)” text link at the start of this section.

Step 2 – Assign The Payee As The Originator Of This Invoice

Open the file you obtained above, then attach the logo of the Vendor or Collection Agency seeking to complete a transaction left unpaid. This logo may be uploaded directly to the spreadsheet in cell A1 and should replace the current image in that cell. The legal name of the Vendor, Collection Agency, or Contractor seeking to collect payment must be identified with the presentation of this entity’s logo. Supply the legal “Name” of this Payee in cell A2. Proceed down column A so that you may input the full “Name” of the Business Owner, Manager, or Representative sending this invoice (with the collection letter) in cell A3. The mailing address where paperwork or payments that must be physically received by the Vendor or Collection Agency should be sent will be our next topic of discussion. Cell A4 (“Street Address”) will expect the first address line (usually composed of a PO Box or the building, street, and suite number) entered for display. Following the “Street Address,” you must use cell A5 (“City, State, Country”) and cell A6 (“Zip Code”) to record the Vendor or Collection Agency’s second address line. This recording of the Sender’s contact information will only be considered complete with the next two cells in column A. Use them to document the “E-Mail” (cell A7) and the “Phone Number” (cell A8) where the Vendor or Collection Agency behind this collection effort may be reached.

Step 3 – List The Entity Under Collection Efforts As The Payer

“Name” the targeted Recipient of this collection in cell A11. This will be the entity responsible for the funds owed on the delinquent account. Cell A12 (“Street Address”), A13 (“City, State, Country”), and A14 (“Zip Code”) are address lines that will operate in a similar fashion as the ones above. These cells expect a production of the Recipient’s full address. 

Step 4 – Attach A Unique Reference Number To This Correspondence

All the parties involved with this collection effort will benefit with a quick and easy way to refer to this document. As such, cell F4 should have the “Invoice #” attached to this collection or the original (overdue) invoice.  The calendar day when you are working on this is the default invoice “Date” on this spreadsheet and is displayed adjacent to the invoice number in cell H4. You may edit this accordingly.  

Step 5 – Make A Report Explaining The Required Payment

Two distinct areas titled “Description” and “Amount” will make up a table that should display precisely why the Sender of this invoice is putting the targeted Recipient under collection efforts. Begin with cell A17 where you should produce a record of the original services and items that are overdue in payment. If any penalties have been added, make sure to list them by name in this section as well (i.e. “Late Fee,” “Financing,” etc.). The cell adjacent to the items that are overdue is titled “Amount” (cell H17) and expects an entry of the overdue amount(s) and any applicable penalties. Cell H18, otherwise known as “Subtotal,” will request that a full account of the owed money be produced before any taxes are applied. Therefore, input the total of the values you recorded to its contents. Whether or not “Tax” is owed will be dependent upon a variety of factors ranging from what the owed amount will pay for to the location of the Vendor/Collection Agency seeking payment. If “Tax” is owed, then you must document the amount in cell H19. Cell H20, named “Total,” is the culmination of this table. Here, you must present the “Subtotal” added to the “Tax” as one dollar amount. This is the dollar amount requested as payment by this collection effort to satisfy the overdue bill. 

Step 6 – Payment Instructions For This Collection Should Be Included

This effort to collect on the invoiced amount should continue to cell A21 where the presented statement (“Payment Is Due”) will let the Recipient know in no uncertain terms that he or she only has a limited number of days to respond with an on-time payment. After which a received payment would be late and subject to any punitive measures in place. Delete the hashtag and the brackets from this statement then replace them with this number. 

7 – Finalize This Document With Additional Topics Of Your Choosing

It may be necessary to furnish additional information or attachments with this collection effort. If this is the case, then use cell A22 to present such material.