There may be circumstances where you must deny a person credit or begin the collection process. While writing a credit letter, pay careful attention to maintain a courteous tone. Remember that a person’s eligibility for credit changes from time to time. The same person, whom you want to deny credit at the moment, might be eligible for it sometime later.
In cases where you have to deny a request for credit, make it clear that you are willing to accept future applications from the same party.
If payment is late, politely ask for an explanation and encourage the person to contact you to discuss his or her financial problems that led to the lapse in payment. If the customer shows no interest in making the payment even after receiving the first credit letter, don’t hesitate to let him or her know exactly what the penalty will be if they do not respond immediately with the payment. Important: Don’t threaten the customer with dire consequences unless you are prepared to follow through.
Letters of credit should be brief and to the point. That said, you must still include all relevant details. Custom credit letters work better than generic ones.
Be confident and persuasive. Being assertive is fine, but make sure that your tone is not overbearing. Also assure your reader that any information that they share with you will remain confidential.