Whether you lease a house, give a loan, rent a car, or run a business, you definitely trigger an issue with overdue payments at some point. It creates chaos, specifically for small businesses. When incoming cash is unpredictable, it gets harder to manage the outgoing cash.
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As per an independent survey, it is estimated that around 20% of all the invoices across the globe are paid late.
Though it can hinder the payment process of a business, small business owners retreat at the thought of asking the money they owe from their clients. Again, chasing and reminding customers for their overdue payment is time-consuming. So, they hesitate to adopt this method as it can keep their customer relationship at stake.
So, how can one overcome this bizarre situation?
Effective Way to Implement Payment Reminder
When it comes to sending payment reminders, you would probably be in a dilemma. How to send a payment reminder professionally? Does it need to be a little too harsh or extremely polite?
Perhaps, you must send a payment reminder that’s polite and firm at the same time. Now the question is to strike a balance between the two.
It’s simple! Just follow the outstanding payment reminder email templates accumulated here, and you are all set to receive your payments on time. But before we dive into these templates, let’s determine the things you must include in your outstanding payment reminder letter format.
Things to include in your Outstanding Payment Reminder Email Format
If you are dealing with a business, you must remember that they are likely receiving a lot of emails daily. So, when you send a payment reminder, make sure you mention all the pertinent details.
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Keep the Subject Line concise and precise
When you receive a payment reminder, you want it to be precise, don’t you? You expect it to give a clear understanding like who has sent it and why you must read it. Same is the case when you are sending a payment reminder. So, mention your Company Name or Contact Name in the subject line as well as at the beginning of the email. This helps the recipient determine who has sent the email and what it is all about.
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Encapsulate updated information
While crafting an outstanding payment reminder email, it is crucial to include information regarding a client’s order/invoice. This will help the client determine the important details and reduce the chances of him/her contact you for the details of the invoice. The more you provide, the more likely they will consider the invoice.
However, using an e-invoicing software enables you to share a link, where your recipient can view his/her original invoice.
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Clarify the types of payment you accept
To make payments easier for your clients, you must include the forms of payment you accept – it can be cash, credit card, check, mobile payments, money orders, or automated clearing house (ACH). However, offering an online payment solution can help you settle the invoices/payments faster.
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Mention the Invoice Date
While sending payment reminders, you must include the date of the invoice, whether the past due date or the upcoming one. When you want on-time payment, it is likely to send payment reminder emails before the invoice due date.
Some of the reminder schedules which tend to yield the highest success rate include:
- A payment reminder email 7 days before the due date
- A follow-up exactly on the day the invoice is due
- An additional payment reminder for each past due invoices – 7 days, 30 days, 60 days, 90 days
- Final payment email/letter on demand 120 days after the payment is due
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Do not forget to include Contact Details
At the end of the email, it is necessary to place your contact details. If your business uses accounting software or have a dedicated team/member looking into invoicing, you can train them with these practices and ask them to mention their contact details at the end of the email.
Payment Reminder Email Templates
Here, we will walk you through four different payment reminder email templates that you can send at different intervals.
- Initial Payment Reminder: 7 Days before the Due Date
Your first email should be friendly and informative. Besides, it must be short. As the invoice date is yet due, make sure you don’t request payment straight away. Just see to it that your email is drafted in such a way that your client feels you track their invoices regularly, and if they don’t pay on time, you will get back in touch.
| Subject Line: {Your Company} – Invoice {Invoice Number}
Hi {first name of client}, I hope you are doing well. This is {your name} contacting you on behalf of {company name} concerning the payment on {invoice number}, which we sent on {date}, will be due next week. I’m sure you are busy, but it would be great if you spare some time and look over the invoice when you get a chance. Please let me know in case of any questions. Thank You, {Your Name} |
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Payment Reminder Email: On the Day of Due Date
As this will be your first call to compel your customers to make their payment, it is an important email. Besides being short, you should draft it to the point. You must maintain a warm and polite tone because the payment is technically not overdue.
| Subject Line: Your Invoice {Invoice Number} is due today
Hi {first name of client}, This is just a reminder that payment on invoice {invoice number} (total {amount}), which we sent on {date}, is due today. Please make the payment to the specified bank account on the invoice. If you have any questions, please reply, and I would be happy to clarify them. Thank You, {Your Name} |
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Payment Reminder Email Template: 7 Days after the payment is Overdue
This would be the first email reminding your customer that the invoice is overdue. So, your tone needs to get a bit firm. This email must comprise of the following details – invoice number, the amount due, and the timeframe to repay. You can also attach a copy of the invoice or share a link of the original invoice so that they can view it if they lost or accidentally deleted one.
| Subject Line: Your Invoice {invoice number} is 7 days overdue!
Hi {first name of client}, Our records show that we haven’t yet received payment of {amount} for Invoice {invoice number}, which is overdue by 7 days. It will be appreciated if you look into this. In case the payment is already sent, please disregard this notice. And in case you have lost this invoice, please find another copy attached herewith. Thank You, {Your Name} |
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Payment Reminder Email: 14 days after the payment is overdue
With this email, you must get more direct. Ask for the payment clearly and also ask the client to revert if they have got your message. This would give them one less reason to ignore your email.
| Subject Line: Your Invoice {invoice number} is 14 days overdue!
Hi {first name of client}, I wrote to you multiple times to remind you of the {amount} due, which we sent on {date}. This is a reminder to say that payment is 14 days overdue. In case of any queries regarding the payment, please reach me out. Attached is a copy of the invoice, if you have misplaced or deleted the previous one. Could you reply to this email and let me know you have received it? Thank You, {Your Name} |
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Last Payment Reminder Email Template: Payment due for more than a month
Even after several attempts to reach out to the client for payment, this email must be a tougher approach from your side. If the customer undermines your professionalism, mention claiming compensation for too late payments. However, don’t let it get personal or too harsh.
| Subject Line: Invoice {invoice number} from {date} is overdue – please send payment ASAP
Hi {first name of client}, This is one more reminder that I have yet to receive the {amount} owed on invoice {invoice number}. Please take note that, according to my terms, I may charge you extra interest on payment received 30 days after the invoice issued. Again, please connect with me in case of any queries regarding the payment. Else, please organize for settlement of this invoice immediately. Thank You, {Your Name} |
Even after trying ‘n’ times over email to receive the overdue payment, you fail to get it; it’s time you call your client directly.
Here are some more outstanding payment reminder email templates that you can leverage to approach your clients.
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