Request Payment of a Personal Loan

Jane and I are finally going on our dream trip to Alaska, and we would like to settle outstanding financial affairs before we leave in August. We hope you are in financial condition to repay us the $750 we loaned you last year. If you are unable to pay it all at once, we would consider regular installments. I will call you next week.

Letter #2

I hope you and Eric are enjoying the boat you purchased last summer. It was a wonderful family investment. As you know, John and I are hoping to expand our family room. We could use the $5000 you borrowed for the boat if you are in a position to reimburse us. If you are unable to pay the lump sum, we could agree to a payment schedule that will cover our payments for the family room addition. Perhaps we can talk about payment arrangements over dinner on Friday.

Letter #3

A year ago when you were in financial trouble, I loaned you $5,000. I'm pleased that you appear to have landed on your feet. I feel it is necessary at this time to work out repayment arrangements. If you could repay the entire amount, I would be most grateful. Let me know what you can do.

Letter #4

As I was going over our financial records I came across a note for the $500 we loaned you in June when you were out of work. We were happy to help you when you needed it; now we would like to settle the matter. We value your friendship too much to let money strain our relationship. Please give me a call at your convenience and let me know how you would like to work this out.

How to Write this Collection Letter: Expert Tips and Guidelines

Because the person who borrowed the money from you is most likely a friend, this letter should communicate very little pressure. Don't hesitate to make the message as personal and warm as possible.

Steps

Indicate, in a very friendly manner, that you think that it is time that the friend repaid your loan.
Encourage your friend to either pay back the money now or to contact you to make other arrangements.
If you deem it necessary, offer a payment schedule that will work for both you and your friend.

Write Your collection in Minutes: Easy Step-by-Step Guide with Sample Sentences and Phrases

1 Indicate, in a very friendly manner, that you think that it is time that the friend repaid your loan.

Sample Sentences for Step 1

I look forward to buying my first home very soon and have been working furiously to get the money together for the down payment. I hope now you are in a position to repay the $1,000.00 I lent you last year.
When you asked me for a loan about six months ago, I was happy to help you out. Now that I am also facing some financial difficulties, I hope you are willing to begin repaying me.
I hope that enough time has passed for you to overcome the financial disaster you faced last year, as I need you to repay the $600.00 you borrowed.
I was glad to help you out with a $300.00 loan when you needed it because I value our friendship. I hope you won't mind repaying me now that you are back on your feet.
Money matters between friends can be uncomfortable, but because of the depth of our relationship, I'm sure that you will not feel offended if I ask you to repay the $140.00 you borrowed a few months ago.
Here are copies of the gas and electric bills you promised to split with me last month.

Key Phrases for Step 1

although we set no definite terms to the loan
although we set no time limits
are you still in financial straits
as long as I can remember
because of the depth of our friendship
could really use your help in return
could use the same favor now
hope you have had enough time to recover
hope that enough time has passed for
gladly helped you in your time of need
gratifying for me to help my friend
have been friends for a long time
have known you as long as I can remember
heard that you're doing well
hope you are able to begin repaying me
hope you won't mind repaying me
hoping that you are in a position
hoping everything is alright now
if you need future assistance
if you're in the position
it seems I'm in the same dilemma
it's been awhile now
money matters between friends can be uncomfortable
more than any amount of money
now that I'm facing some financial difficulties
really value our friendship
received the receipt for the bill I paid
sure you will not feel offended
thought I would have the money to
was happy to help out
was wondering when
was grateful I was in a position to help
was more than happy to help out
when you needed cash
when you asked me for a loan
when you approached me needing assistance
would not like anything to come between us
would like you to return the $700.00 you borrowed
would appreciate repayment

2 Encourage your friend to either pay back the money now or to contact you to make other arrangements.

Sample Sentences for Step 2

I hope you can send the money soon.
The electric bill is due at the end of the month, so please send your share by June 25.
We really need that money now, so I'm counting on you to send a check as soon as possible. Please let me know what you can do.
I look forward to getting your call.
Drop me a line and tell me what you think would be the best payment plan.
If you don't agree with this strategy, or if you can think of a better alternative, give me a call. I'd like to hear from you anyway.
Can you send the first $100.00 by the end of the month?
I hope you can send the first $50.00 sometime next week.

Key Phrases for Step 2

as soon as you possibly can
by my calculations
by the end of the month
can you send the first payment by
confident that I can count on you
could really use that money now
counting on you to send
drop me a line
electric bill is due at the end of the month
facing my own obligations at the end of this month
has been awhile since I heard from you
heard that you're doing well
hope you will send the money soon
hope you could send a check along with your letter
hope you can send
if you have a better suggestion
if this isn't satisfactory
if you can think of a better alternative
if the full amount is no possible
if this is acceptable to you
if this seems fair to you
let me know what is happening
let me know what you're able to do
like to get this worked out
like to hear from you anyway
look forward to getting your call
tell me what you think would be the best approach

3 If you deem it necessary, offer a payment schedule that will work for both you and your friend.

Sample Sentences for Step 3

I understand that $600.00 may be more than you can afford at one time, so if you want to pay me back $100 per month, that will be fine.
I hope you can afford $50.00 per month to pay off the loan.
If you'd rather not pay the entire sum at once, $200.00 per month will help me meet my new obligations.
You can take as much time as you need to pay me back, but I really think we should develop a payment plan so we both know what to expect.
I value our friendship so I don't want to overwhelm you with my request for the money you borrowed. On the other hand, I need the money to buy a dependable car. I will welcome your suggestions about how we can solve this problem.
If paying $200.00 a month creates a problem, we can make another arrangement.

Key Phrases for Step 3

a minimum amount each month
are usually so prompt
better if you come up with a plan
can make another arrangement
can take as much time as you need
could we agree that
don't want to impose any hardship
don't want to overwhelm you
drop me a line
help me devise a payment plan
if you would rather not pay the entire sum at one
if paying that much in one month presents a problem
if you can suggest an alternate payment plan
just a little each month
know you have other commitments
know we can overcome this challenge
know you can't repay me in one large chunk
more than any amount of money
nothing two friends can't work out
perhaps you should suggest some sort of payment plan
please let me know soon
realize monthly payments might make it easier
realize it might be difficult to come up with
really think we should develop a payment plan
so we both know what to expect
so there is not misunderstanding
some sort of schedule
tell me what you think would be the best payment plan
that will be fine
time you need to pay me back
will help me with my new obligations
work this out together
do not want anything to come between us
would be grateful for a partial payment