The sad fact is that 87% of businesses report that their invoices get paid after the due date. This late payment crisis has put huge pressure on businesses globally, impacting cash flow, slowing growth and, in the worst cases, leading to insolvency.
The best way to combat this late payment crisis is to be proactive with your payment chasing and emails are the most convenient and least time consuming way to do that. This article will provide you with 3 effective payment reminder email examples to use, an editable template you can customise and all of the information you need to write your own gentle reminder for payment message.
What is an outstanding payment reminder?
An outstanding payment reminder is a communication sent to a customer to remind them of an overdue invoice. The purpose of a warning letter for outstanding payment is to encourage the customer to pay the invoice as soon as possible and to avoid any late payment fees or penalties.
What is a payment reminder email ?
Anfriendly reminder of payment due email is a communication sent to a customer to remind them of an invoice that has not been paid by the due date. As with an outstanding payment reminder, the primary objective of an overdue invoice reminder email is to prompt the customer to prioritise payment and prevent potential late payment fees or penalties.
Why should you send a friendly payment reminder letter to your client?
Sending a friendly payment reminder letter to your client is a crucial step in maintaining smooth business transactions and fostering positive client relationships. Here are several compelling reasons why you should consider sending a payment reminder letter:
Avoid late payments and maintain a positive cash flow
Late payments can disrupt your business's cash flow and hinder your ability to meet financial obligations. A happy friendly payment reminder serves as a gentle nudge, reminding clients of their outstanding invoices and encouraging them to make timely payments. By prompting clients to pay on time, you can maintain a healthy cash flow and ensure that your business operates smoothly.
Remind clients of outstanding invoices and encourage timely payment
Sometimes, clients may overlook or forget about their invoices due to various reasons. A friendly payment reminder email acts as a gentle reminder, bringing their attention back to the outstanding balance. By doing so, you increase the likelihood of receiving payment promptly and reduce the risk of late payments.
Prevent late payment fees or penalties from accruing
Many businesses charge late payment fees or penalties to discourage tardy payments. Sending an overdue payment email can help prevent these additional charges from accruing. By reminding clients of their payment due date and any potential consequences for late payment, you encourage them to make timely payments and avoid incurring additional fees.
Maintain a professional and courteous relationship with clients
A well-crafted reminder for payment email demonstrates your professionalism and courtesy towards your clients. It shows that you value their business and respect their time. By sending a polite and friendly reminder, you maintain a positive relationship with your clients and foster trust and cooperation.
Demonstrate appreciation for prompt payment
Expressing appreciation for prompt payment in your reminder letter shows your clients that you value their promptness. This gesture of gratitude reinforces the importance of timely payment and encourages clients to continue making payments on time in the future.
Reduce the risk of disputes or misunderstandings regarding payment terms
A friendly reminder to pay an invoice serves as a written record of the payment terms and due dates agreed upon between you and your client. By providing a clear and concise summary of the outstanding invoice, you minimize the risk of disputes or misunderstandings regarding payment terms, ensuring a smooth and transparent payment process.
Encourage clients to pay invoices electronically
In today's digital age, electronic payments offer convenience and efficiency for both you and your clients. In your payment reminder letter, you can include information about electronic payment options, such as online portals or mobile apps. By encouraging clients to adopt electronic payments, you streamline the payment process, reduce paperwork, and expedite the receipt of funds.
When to send a payment reminder/payment request email to a client?
Sending a payment reminder or friendly payment reminder email to a client is an important part of the invoicing process. However, it is essential to find the right balance between being proactive and not being overly aggressive.
Here are some key factors to consider when determining the appropriate time to send a payment reminder email:
- Invoice due date:
- Send the first payment reminder email a few days before the invoice due date as a friendly reminder.
- Payment terms:
- Consider the payment terms specified on the invoice. If the terms are "net 30," send the reminder email 30 days after the invoice date.
- Client relationship:
- Take into account your relationship with the client. For long-standing clients with a good payment history, a gentle reminder may suffice. New clients may require a more proactive approach.
- Payment history:
- If a client has a history of late payments, it may be necessary to send a reminder email sooner.
- Invoice amount:
- For larger invoices, it may be appropriate to send a reminder email sooner than for smaller invoices.
- Communication preferences:
- Consider the client's preferred method of communication. If they prefer email, send the reminder via email. If they prefer phone calls, make a courtesy call.
8 payment follow-up email samples
One of the most difficult steps in writing your own payment reminder emails is knowing where to start and how to phase your late payment email.
To help you get started, the experts at Chaser have put together three request for outstanding payment email samples that you can edit to fit your needs. These polite payment reminder email examples can be used as the foundation of your own payment reminder email.
Email template 1: Pre-due date payment reminder email template
Even before an invoice payment due date, it’s important to send a payment reminder email to the customer.
You should send this email roughly one week before a payment due date, and it should contain all the information required for the timely receipt of any upcoming payments.
This ensures you don't get forgotten about and can help to keep payments on track. Within these pre-payment reminders, you should ask the client to confirm that they have received the initial invoice while acknowledging that payment is not yet past due.
What to include:
A payment reminder email is a great place to inquire about whether any known issues would delay payment. For instance, the client could be confused about the payment process or unsure of the payment details. You could even provide them with a link so they can easily view their invoice and pay online. It’s also important to provide clear contact details such as a phone number, where clients can discuss potential issues in advance.
You should also take this opportunity to ensure that everyone is clear on any payment terms, such as the due date by which clients should submit payment, or any applicable late fees if payments are missed. On your end, it's helpful to know the expected date when an invoice is going to be late so that you’re always immediately aware of an outstanding payment.
Here's one of the best payment reminder email templates you can use when crafting this type of communication.
Subject: [Your company’s name] <> [invoice reference number]
Body:
Hello [Recipient's first name],
I hope that you are well. I am 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]. Please could you kindly 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, please let me know.
Best regards,
[Sender's first name]
Email template 2: Polite overdue invoice reminder email
If an invoice remains unpaid past an initial invoice due date, it’s important to chase the payment with further payment reminder emails.
You could send this kind of email on the date an invoice becomes due, or when an invoice is between three days and one week past due.
What to include:
When inquiring about late payments, you should always avoid coming across as angry or rude. Instead, focus on ensuring a polite and professional tone throughout your payment reminder emails. Simply let the client know that this is just a payment reminder – keeping things friendly will help you gain a timely payment.
If your payment terms include charging for late payments, you should state this in your reminder message or follow-up email. You should also take this opportunity to include details on whether you intend to apply interest fees based on the original due date.
Remember, a payment reminder should provide the client with the key payment details and information they need. Mention of a late fee can spur them into action.
We recommend using your business name and phone number, as well as the invoice number on a payment reminder email as it allows the recipient to know precisely who is communicating (in this case, your business' name) and what this email refers to.
In any payment reminder messages, we recommend also stating clearly:
- The amount owed due to outstanding payments
- The invoice number (included in the email subject line)
- The date when the payment was due
- Any payment options that they can use (you could include a payment link for online invoices)
Subject: [Your company’s name] <> [invoice reference number]
Body:
Hello [Recipient's first name],
I hope you are well.
I just wanted to drop you a quick note to let you know that we have yet to receive payment from yourselves of [amount owed on invoice]. This is in respect of our invoice [invoice reference number] which was due for payment on [date due].
I have attached a copy of the invoice for your reference.
I would be really grateful if you could confirm that everything is on track for payment.
Best regards,
[Sender's first name]
Email template 3: When an invoice is early overdue
It’s important to send a prompt early overdue payment reminder email if you’ve received no communication after your previous emails, or if payment becomes more than a week overdue.
What to include:
Considering that not much time has passed since this payment became past due, your aim in sending these payment reminders should be to ensure that you get a payment date agreed upon as soon as possible, rather than “nudging” your customer.
Remember that when invoice payment is overdue, you are legally entitled to add interest and compensation for it depending on how many weeks overdue that late payment becomes. If you choose to employ these rights for your business, make this clear to the customer in your overdue invoice reminder email.
Clearly stating these payment terms ensures that clients fully understand the consequences of late payment. Highlighting this element of the payment process also makes it more likely that you’ll receive prompt payment shortly after sending payment reminder emails.
Subject: [Your company’s name] <> [invoice reference number]
Body:
Hi [Recipient's first name]
I hope you are well.
We have yet to receive payment from yourselves of [amount owed on invoice] in respect of our invoice [invoice reference number] which was due for payment on [date due].
I would be really grateful if you could let me know when we can expect to receive payment.
I have attached a copy of the invoice for your reference. Thank you for your help.
Best regards
[Sender's first name]
Email template 4: Late overdue invoice reminder
If you've chased a customer with multiple reminders for an overdue unpaid invoice without any luck using payment reminders, it's time to change your accounts receivable tactics.
After the first three email reminders, you have contacted your client repeatedly to pay their overdue invoice without any success. The email below gives your client one more opportunity to pay kindly, whilst still escalating the severity of the late payment. This kind of payment reminder email template is also useful if the client is ignoring other forms of communication such as SMS messages regarding their outstanding invoice.
What to include:
These types of payment reminder messages should ultimately act as a final notice for unpaid invoices. Spell out this level of urgency in the body of the follow-up payment reminder message with the line “as a matter of urgency,” as well as with the use of the word “OVERDUE” in the email subject line. A clear subject line is critical for a high open rate.
For instance, the email’s subject line on payment that’s one week overdue could be “Overdue Payment reminder from (Your Business) - Due (Date Due). A month overdue subject line will be more urgent such as “Urgent Overdue payment notification from (Your business) - Due (Date Due).
Again, remember to attach a copy of the invoice with your reminder email to prevent getting held up by claims that the client never received the initial invoice. You should also include a customer statement if emailing about multiple invoices, and ask the client to confirm receipt of these documents. It’s also important to restate any escalating late fees, preferably with a cost breakdown of how you’ve arrived at that late fee to highlight the growing expense of the overdue payment.
Subject: [Your company’s name] <> [invoice reference number]: OVERDUE
Body:
Hi [Recipient's first name]
I hope you are well.
We have yet to receive payment from yourselves of [amount owed on invoice] in respect of our invoice [invoice reference number] which was due for payment on [date due].
Could you please let me know, as a matter of urgency, when we can expect to receive payment?
I've attached the invoice for your reference.
Best regards,
[Sender's first name]
Email template 5: When an invoice is paid
Whether it was early, on time, or two weeks late, when a customer pays your invoice, you should send them a “thank you for paying” email once you have received payment to your bank account. It's crucial to do this regardless of whether the client responded after the first payment reminder message or the fifth.
This type of communication will undoubtedly have a positive effect, as perhaps the client will feel guilty about their late payment from your polite handling of it and endeavour to pay earlier in future. Or they'll appreciate you recognising them paying in a timely manner, reinforcing the relationship and ensuring future payments remain timely.
Not only do ‘thanks for the payment' emails help to improve future payment behaviours, but they can also be used as an in for converting customers to direct debit or securing further sales.
We recommend the following template for thanking your customers for payments.
Subject: [Your company’s name] <> [invoice reference number]
Body:
Hello [Recipient’s first name],
I just wanted to drop you a quick note to let you know that we have received your recent payment in respect of invoice [invoice reference number].
Thank you very much. We really appreciate it.
Best regards,
[Sender’s first name]
Email template 6: Invoice overdue
Subject: [Your company’s name] <> [invoice reference number]
Body:
Dear [Client Name],
I hope you're doing well. I'm writing to you today regarding Invoice [Invoice Number], which is now [Number of Days] days overdue.
The original invoice was sent on [Date], and the due date was [Due Date]. The total amount outstanding is [Amount Due].
Can you please let me know when I can expect payment for this invoice? I would appreciate it if you could arrange payment by [New Due Date].
If you have any questions or concerns regarding the invoice, please don't hesitate to contact me.
Thank you for your prompt attention to this matter.
Best regards,
[Your Name]
Email template 7: Invoice Overdue
Subject: [Your company’s name] <> [invoice reference number]
Body:
Hi [Client Name],
I hope this email finds you well. I wanted to politely remind you about Invoice [Invoice Number], which is currently [Number of Days] days overdue.
The original invoice was sent on [Date] and the due date was [Due Date]. The total outstanding amount is [Amount Due].
I understand that things can get busy, but prompt payment helps ensure the smooth operation of our business and allows us to continue providing excellent service to our clients.
If you have already sent payment, please disregard this email. If not, I would greatly appreciate it if you could arrange payment by [New Due Date].
Thank you for your understanding and cooperation. If you have any questions or concerns, please don't hesitate to contact me.
Best regards,
[Your Name]
Email template 8: Invoice Overdue
Subject: [Your company’s name] <> [invoice reference number]
Body:
Dear [Client Name],
I hope this email finds you well. I'm writing to you today regarding Invoice [Invoice Number], which is now [Number of Days] days overdue.
The original invoice was sent on [Date], and the due date was [Due Date]. The total amount outstanding is [Amount Due].
I understand that unforeseen circumstances can sometimes delay payment. To assist you in resolving this matter, I would like to offer you a payment plan option. This plan would allow you to make smaller, monthly payments until the full amount is paid.
Please let me know if you are interested in this option, and we can work together to create a payment plan that works for both of us.
If you have any questions or concerns regarding the invoice or the payment plan, please do not hesitate to contact me.
Thank you for your prompt attention to this matter.
Best Regards,
[Your Name]
Customizable invoice reminder template
In addition to the samples above, the credit control experts at Chaser have put together a bill reminder template that you can edit to fit your needs. This payment reminder email template is available as both an overdue payment reminder letter pdf and an overdue payment reminder letter Word format.
How to ask payment from client through message: 5 tips to request payment effectively and in a tactful way
- Be direct:
- Start your message with a clear statement about the purpose of your communication, such as "I'm writing to request payment for Invoice [Invoice Number]."
- Provide details:
- Include relevant information such as the invoice number, date, total amount due, and any payment terms.
- Be polite and professional:
- Use a friendly and respectful tone. Avoid using aggressive or demanding language.
- Offer multiple payment options:
- Provide multiple payment options to make it convenient for the client, such as bank transfer, online payment, or credit card.
- Include a deadline:
- Set a reasonable deadline for payment and politely request the client to respond or make payment by that date.
What should an invoice payment reminder include?
An invoice payment reminder should include the following information:
- Invoice number
- Invoice date
- Due date
- Total amount due
- Payment terms
- Contact information for the sender and recipient
- A polite and professional tone
- A clear call to action, such as "Please remit payment by [due date]"
- Any late payment fees or penalties that may apply
- A reference to the goods or services that were invoiced
- A thank you for the client's business
The benefits of planning your invoice reminder emails with Chaser
Chasing overdue invoices can drain your energy and take time away from running your business.
Chaser eases that strain by simplifying the invoice reminder process wherever possible. With Chaser, you can plan out times (schedules) and sequences for when your invoice reminder emails go out, as well as how often you will follow up on invoices after the first payment reminder email so that these become programmed and expected by your customers.
How could Chaser help?
The benefits of set schedules for sending out an overdue payment reminder are twofold:
- Save time! Time spent chasing outstanding invoices is time spent away from business operations. When you schedule, automate, and oversee credit control using Chaser, you’ll save time to spend on more important elements of company success.
- Your customers will expect it and come to respect it. When you encourage positive customer paying habits thanks to reliable invoice reminders and Chaser’s easy-to-use payment portal, you make payments easier for everyone. This makes positive customer paying habits, and timely payments, far more likely.
Using Chaser, email and SMS payment reminders can be scheduled at different intervals throughout the invoicing process. It’s also possible to tailor those reminders to different customer groups, such as good or bad payers, with a unique template that you customise with your own branding.
Having a transparent view of debtors, payments, and all invoice communications in one centralised system empowers you to spot any potential issues, take action and keep your company's cash flow in a positive position.
Let Chaser take your overdue invoice reminder emails further
Chaser is committed to creating a world where all businesses have the confidence that they will get paid for their work.
To make that happen, you can access a free 10-day trial of Chaser's credit control software, which delivers real-time insights about your most urgent debt and how best to chase it, as well as automated payment reminders, that are branded to look like they come directly from you.
If you want to take matters one step further than optimising your overdue invoice payment reminder emails, see our ultimate guide to accounts receivable blog, with free guidance on how to optimise your business' entire receivables function. This guide covers everything from the fundamental cornerstones of your AR procedure, when, how and why to conduct credit checks and how to distinguish good and bad payers.
Alternatively, you can contact our friendly team of experts for more information, or join our webinar for practical advice and insights on how to reduce late payments.
FAQs
What to do if you don’t receive payment after sending a friendly reminder for payment?
Be proactive! Make sure you have the right contact details and then follow up on your friendly reminder for payment using other channels, such as SMS reminders or calling to remind your customer that their payment is late.
What can you do if your client doesn’t pay your invoice for more than 90 days?
The first step you can take is to send a friendly payment reminder email to your customer. Make sure it contains all the relevant information for them to make a timely payment and clearly states that their payment is overdue and the due on which you expert the overdue payment to be made.
How to write a strong letter for an outstanding payment email?
As covered in the article on ‘how to ask for payment professionally in message,’ when writing a strong letter for an outstanding payment email, start with a friendly and professional tone to maintain a positive relationship with the client. Clearly state the purpose of the email as a reminder of the outstanding invoice, providing the invoice number, date, and amount due.
Express gratitude for their business and respect for their time. Politely inquire about when payment can be expected and offer to discuss any concerns or questions they may have.
How to prevent late invoice payments?
Preventing late invoice payments requires a proactive and organized approach. Establish clear payment terms and due dates on your invoices, and consider offering early payment discounts to incentivize timely payments. Send invoices promptly after completing the work or delivering the goods.
Regularly follow up with clients to remind them about outstanding invoices, and consider using automated payment reminders or online payment portals to make the payment process easier for them.
