Pre-Collection Demand Letters

Pre-collection is a flat-fee demand series sent before an account goes to full collections. A short sequence of emails and letters, each with a payment link, recovers many early past-due invoices without a contingency fee. Anything still unpaid after 21 days can move to contingency collection.

The 21-day sequence

• Day 0: notice of placement and itemized balance by email and first-class mail
• Day 7: second notice with invoice copies attached
• Day 14: final notice before the account is placed for full collection
• Day 21: unpaid accounts can roll to contingency collection with one click

When to use it

Pre-collection works best on invoices 30 to 90 days past due where the customer is still operating and there is no real dispute. For older accounts, larger balances or debtors who have stopped responding, go straight to contingency collection.

Why a third-party notice works

By the time an invoice is 45 days past due, the customer has usually ignored several reminders from your accounts receivable team. A notice from an outside collection agency changes the signal. It tells the customer's controller or owner that the account has left the normal billing cycle and that the next step is full collection. Many businesses pay at that point simply to keep the account from going further.

Each message in the series is short and factual: the itemized balance, the invoice numbers and dates, a deadline, and a payment link that lets the debtor pay by card or ACH in a few minutes. There are no threats, no exaggerated claims and no references to consequences you have not authorized.

What we need to start

• The debtor's legal business name and a billing contact email
• A mailing address for first-class letters
• Invoice numbers, dates and amounts
• Copies of the invoices to attach to the second notice
• Any partial payments or credits already applied

Pre-collection or full contingency?

Pre-collection costs a flat fee per account, so it makes the most sense where you expect the customer to pay once it is reminded firmly: an active customer, an invoice under 90 days, and no real dispute. Payments made during the series go to you in full.

Contingency collection fits accounts where the debtor has stopped responding, moved, disputed the debt or is clearly short of cash. It includes phone work, skip tracing and negotiation, and costs nothing unless money is collected, priced by balance from 10% to 30%. If you are not sure which fits, start with pre-collection and roll the account forward on day 21 if it is still unpaid.

How disputes and replies are handled

Debtors reply to demand letters with all kinds of answers: it was paid last week, the invoice went to the wrong office, part of the order was damaged. Every reply is logged in your client portal so you can see it, confirm a payment or send the document the customer asked for. Accounts with a genuine dispute are better resolved directly or moved to contingency collection, where a collector can negotiate.

Tips for better results

• Send accounts at 30 to 45 days past due, while the customer is still active and the invoice is fresh
• Use a billing contact who can approve payment, not only the person who placed the order
• Remove accounts with an open dispute or a pending credit memo before the series starts
• Tell us about any payment you receive directly so the next notice is not sent
• Review results every month and set a standing rule for which accounts enter the series

Frequently asked questions

Related services

• Commercial collections
• Legal collections
• Judgment enforcement
• International collections
• Skip tracing
• Bankruptcy claims
• Lien & bond claims

Industries we serve

• Construction
• Trucking & Freight
• SaaS & Software
• Manufacturing
• Wholesale & Distribution
• Staffing Agencies
• Marketing & Creative Agencies
• Medical & Dental Supply
• IT & Managed Services
• Commercial Services