Overdue payment reminder template

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Overdue payments can cause chaos for small businesses. If your incoming cash is intermittent and unpredictable it’s much harder to manage your outgoing cash. Organising and polishing your overdue payment reminder communications is critical to having a functional collections process.

One of the best things you can do to encourage your clients to pay on time is to communicate with them regularly via an organised set of payment reminder emails.

But what to write in the emails? It’s important that all your communications reflect your brand and are professional and polite. You don’t want to ruin a good relationship with your client!

We’ve put together four separate overdue payment reminder templates, to help speed up your collection processes.

All the overdue payment reminder templates are customisable and ready for you to simply copy and paste and fill in your information.

1. Reminder ahead of due date

Before an invoice is due, you should send your client an email detailing all the required information that is necessary for payment on time.

It’s a good idea to do this at this point so that you don’t get forgotten about. Ask the client to confirm that they have received the invoice, and acknowledge that the invoice is not yet overdue.

You might also enquire about whether there are any known issues that would delay payment. It’s helpful for you to know the expected date of payment when an invoice is going to be late.

Reminder email template

Subject: [your company] – [invoice ref number]

Dear [client name],

I’m contacting you on behalf of [your company] with regard to the following invoice:

[invoice ref number] / [invoice balance]

This invoice is due for payment on [invoice due date]. It would be greatly appreciated if you could confirm receipt of this invoice and advise as to whether payment has been scheduled.

I have attached a copy of the invoice for your reference. If you require any further information from our side, please let me know.

Best wishes,

[sender name]

Download a free payment reminder template [401kB]

2. Invoices less than 14 days overdue

When invoices are overdue by a few days, it’s appropriate to send the first communication to chase the payment up. When enquiring about late payments you should always be professional and polite in tone, and it’s important not to come across as accusatory.

If you charge for late payments, then this reminder is a good place to reiterate what the charges are.

First overdue payment reminder template

Subject: [your company] – Overdue Payment – [invoice ref number]

Dear [client name],

Further to my previous correspondence, I’m contacting you on behalf of [your company] with regard to the following outstanding invoice

[invoice ref number] / [invoice balance]

This invoice is now overdue (due: [invoice due date]).  It would be greatly appreciated if you could advise as to payment status.

If there are any issues delaying payment (e.g. missing invoice, incorrect information etc.) please do let me know and I can send the relevant information as the due date for this invoice has now passed.

I have attached a copy of the invoice for your reference.

Best wishes,

[sender name]

Download a free first overdue payment reminder template [401kB]

3. Invoices more than 14 days overdue

Once a payment becomes overdue, remember that you are legally entitled to add interest and compensation to an overdue payment. If you choose to employ these rights for your business, make this clear in your letter.

Second overdue payment reminder template

Subject: [your company] – Overdue Payment – [invoice ref number]

Dear [client name],

Further to my previous correspondence, I’m contacting you again on behalf of [your company] with regard to the following outstanding invoice:

[invoice ref number] / [invoice balance] / due date: [due date]

If you need any further information or documentation in order to pay this invoice, please let me know so I can provide this. Otherwise, please advise as to the status of this payment as it is now more than 14 days overdue.

I have attached a copy of the invoice for your reference.

Thanks for your help,

[sender name]

Download a free second overdue payment reminder template [401kB]

4. Extremely late invoices

At this point you have contacted your client repeatedly for payment on an overdue payment without any luck, this communication should let your client know that you are looking into other means to collect your payment.

Remember you are legally entitled to add interest and compensation to an overdue payment. If you choose to employ these rights for your business, make this clear in your letter.

This letter gives your client one more opportunity to pay, before you decide to proceed with legal action. This letter escalates the severity of the late payment.

Final reminder email template

Subject: [your company] – Final Reminder – [invoice ref number]

Dear [client name],

Further to my previous correspondence, I’m contacting you once again on behalf of [your company] with regard to the following outstanding invoice:

[invoice ref number] / [invoice balance]

This invoice was due on [due date] and remains unpaid.

Given the lack of response on your side after several attempts to contact you, we will shortly begin legal proceedings in order to receive the monies owed to [your company].

Immediate payment will result in us closing this issue without need for legal action.

I have attached a copy of the invoice for your reference.

Regards,
[sender name]

Download a final overdue payment reminder template [401kB]