This is a letter which can be used after you have already contacted your customer several times, sending two or more collection letters and making one or more phone calls.

At some point in the collection process the question must be asked: What can be happening that would prevent your customer from issuing payment?

1. Do they not have the money to pay the bill?
2. Are they unwilling to pay the outstanding balance because of a dispute or problem, or perhaps
3. They have the money and all of the necessary documentation to issue payment, but are holding up payment to minimize cash outflows.

Eventually, it may become more important to collect the unpaid balance than to preserve goodwill with the customer, and this letter can be used in that situation.