You can create goodwill with your customers while setting the stage for improved payment performance from those slower to pay. Consider sending this letter to all of your customers (or to just your slower pay or delinquent customers) to advise them that your company reports its customers’ payment histories to the National Association of Credit Management (NACM). Your good-paying customers will appreciate your support, your customers with legitimate disputes may contact you to resolve them, while others will simply send in payment. Those that don’t take any action may warrant additional review.
Initial Notice Letter
Dear Valued Customer,
In today’s business environment, we understand the vital role that good credit plays in every company’s ability to access capital. We know that many companies today, of all sizes, have to rely on lines of credit to buy inventory, supplies or even to meet payroll. As a commercial trade supplier, we want to do everything we can to support your businesses—whether large or small—in building a complete and robust credit history. This will ensure that valued customers like you will continue to have access to the commercial credit you’ve earned and deserve.
To support our goal of meeting best-in-class commercial credit practices, we are active members of the National Association of Credit Management (NACM). NACM’s mission is to promote honesty and integrity in commercial credit transactions. Without business credit, our global economic system would not exist. Business credit is, in reality, the capital required to conduct business.
Next month, we will report all open and paid account balances to NACM. This information will become a part of your business’ credit history and may be accessed by your existing and future creditors—those within our industry and others, such as banks, leasing companies, service providers, transportation companies, advertising or construction firms, etc.
Reporting your payment history will help your company to not only build, but to also maintain a strong credit history in a database that is instantly accessible to NACM members worldwide. NACM is not only our go-to source for information, it is also a trusted source to businesses across our industry.
We hope that you’ll review the enclosed open invoice(s) and act upon them within the next few days. We’d like the information we report to NACM to be factual and as up-to-date as possible.
Thank you for your support and for your continued business!
Final Notice Letter
Dear Valued Customer,
We’ve made repeated attempts to collect the past-due balance on your account. Since your account has not been brought current, we are prepared to take further action. In 30 days, your account will be turned over to a collection agency, at which point you may be liable for added collection fees and court costs. On that same date, the past-due status of your account will also be reported to the National Association of Credit Management (NACM). As you know, this information will become a part of your business credit history and may be accessed by your existing and future creditors as they review the creditworthiness of your company.
To avoid such actions, please review the enclosed invoice(s) and remit payment immediately for before collection actions are initiated.