It doesn’t matter what type of business you run. It’s guaranteed that you’re going to have customers that still owe you money, even after you’ve made sure to tell them when their payment is due.
The reality is that 60% of people are anxious about their bills.
Sure, that statistic is from a personal perspective. Yet, it’s safe to say that the same feeling carries over to the business world as well. I can’t imagine that those individuals who feel nervous about their personal bills would have a different feeling about their business’s finances.
The inevitable overdue payment is something you should prepare for as a business owner.
What’s most important, though, isn’t what you do to prevent overdue account balances, it’s how you handle them after they’ve reached this point.
You should have a process in place that automatically kicks in as soon as one of your accounts becomes outstanding. Every effort you make prior to giving up on collecting from your delinquent accounts and outsourcing to a collections agency has a massive impact on your revenues.
Oftentimes the process I’m referring to means that you resend the invoice with a custom dunning message and include a past-due letter through the mail. But, what happens if that still isn’t effective?
You can’t just keep sending the same bill to a delinquent account for months, expecting payment. Instead, you’ll have to take a different approach entirely.
In other words, you’ll have to send your payment reminders through multiple channels.
It’s possible that the overdue client you’re trying to collect on doesn’t even know that they owe you because you never sent their bill to the right address (if that’s the case, hopefully, you’re not a healthcare practice).
Or, maybe the client that owes you isn’t a part of the same generation as you. If that’s the case, then there’s a high chance that they prefer receiving their bill in a different format altogether.
The point I’m trying to make is that you shouldn’t rely on one delivery method for your collections process. That concept also applies to your payment reminders as well. It goes back to the age-old cliche, “Don’t put all of your eggs in one basket.” Relying on one type of delivery method will end up backfiring on you.
One of the most effective, modern-day channels to utilize is email. Over one-quarter of consumers want to receive their bills via email.
Whichever mediums you choose to utilize when sending bills to clients you should replicate when sending your payment reminders.
However, you shouldn’t use the same verbiage that you would use in a physical payment reminder letter. The ideal email copy is between 50 and 125 words has a response rate of 50%. Anything beyond that most likely won’t get read.
Luckily, I’ve drafted up 12 payment reminder sample emails that fit within that sweet spot and will actually work in your collection efforts. Each section provides two samples with different tones.
Table of Contents
One Week Before Due Date
If you’re like most organizations, you assign a due date for your client’s payment one month after they’ve received your invoice. In a perfect world, your customers would pay you the moment they received their bill in the mail.
But, this isn’t always the case. Your customers might be on a different billing cycle than you so they wait until they’ve received money to pay off their debts. Naturally, waiting opens up the door to forgetting that they owe you money altogether.
35% of people admit to missing a bill because they forgot about it.
Thus, it’s a good idea to send a payment reminder email to your clients one week before it’s due.
This email should use an optimistic tone. In other words, you should frame it in a more customer-centric way. After all, their account is still in good standing with your organization.
Sample 1: Personable Tone Before Due
Subject: How Is Everything? Your Payment is Due Soon.
Body:
Hi [Customer’s First Name],
We hope that you’re enjoying your [Insert Product/Service Name].
At [Company Name] we take pride in making sure that all of our customers enjoy what we provide them.
I did want to quickly mention that we haven’t received payment from you just yet. No worries, it isn’t due until [due date] (one week from today).
You can pay by mailing us a check at [Company Address] or online here - [Link to invoice]
If you have any questions don’t hesitate to reply to this email or give us a call at [Support Phone Number].
Kindest Regards,
[Your First Name]
Sample 2: Corporate Tone Before Due
Subject: [Item/Service Purchased]: Invoice #[Invoice Number]
Body:
[Customer’s First Name],
We have yet to receive payment from you regarding the [Insert Product/service] you purchased from us on [Purchase Date].
You may send us payment via check or online here - [Link to Invoice]
If you have any questions regarding your payment, please contact [Support Phone Number].
Regards,
[Your First Name]
[Title]
On The Day Payment is Due
By the time your client’s payment is due, they should’ve already received a reminder.
After the first email you sent, maybe they even responded to it reassuring you that they are aware of their outstanding balance with you and plan to pay it ASAP. Yet, here you are, one week later, and their balance is due.
This type of reminder doesn’t need to gauge your client’s feedback on the product or service they purchased from you. Instead, its main focus needs to be on the balance that they owe.
That doesn’t mean that it can’t use a friendly tone. It’s possible that your client is going through a rough financial situation right now. Thus, going out of your way to show empathy could work wonders on your collection efforts, especially when payment is due.
Sample 3: Personable Tone on Due Date
Subject: Your Payment is Due Today
Body:
Hello [Customer’s First Name],
Unfortunately, we still haven’t received your payment for [Invoice Number]. It is due today.
Is it a bad time financially? We’re willing to help you by offering financial assistance. Respond to this email or give us a call at [Phone Number] and we’ll work together to get your balance resolved.
Best Regards,
[Your First Name]
Sample 4: Corporate Tone on Due Date
Subject: [Item/Service Purchased]: Invoice # [Invoice Number] Due
Body:
[Customer’s First Name],
Your payment of [Payment Amount] is due today for [Invoice Number].
Please visit [Link to Invoice] to view and pay your balance.
We offer financial assistance. Respond to this email promptly or contact us at [Phone Number] for more information.
Regards,
[Your First Name]
Shortly After The Due Date
Clients want you to view them in the best light. As a result, it’s still possible that they responded to both of your reminder emails yet still haven’t paid you. Although that sounds silly, it does happen.
Or, maybe they haven’t responded to you since the first email. Either way, you can’t stop your efforts to collect what’s owed to you.
By now you’ve probably noticed the pattern in terms of how often you send payment reminders. We’ve sent one email on a weekly basis since seven days before the due date. This sample follows the same strategy.
Sample 5: Personable Tone Shortly After
Subject: Your Invoice #[Invoice Number] is Overdue - We Can Help
Body:
Hello [Customer’s First Name],
I took a look at our records today and noticed that we’re still waiting to receive payment from you for your invoice #[Invoice Number].
Your invoice with us was due on [Insert Due Date]. Since that day has passed, your account balance with us is now considered overdue.
Don’t worry, this doesn’t mean you’ve incurred any additional fees yet.
I’ve taken the courtesy to attach your invoice to this email just in case you’ve lost it.
You can pay your invoice off by clicking this link [Link to Invoice].
Warm Regards,
[Your First Name]
Sample 6: Corporate Tone Shortly After
Subject: Invoice #[Invoice Number] is Now Overdue
Body:
[Customer’s First Name],
Our records indicate that your invoice #[Invoice Number] is now 1 day overdue.
In order to avoid any additional fees, pay your invoice as soon as possible.
You can pay your invoice online at [Link to Invoice].
Regards,
[Your First Name]
One Month Overdue
After your first barrage of reminders, it’s a best practice that you go “radio silent” for a little while on the delinquent account you’re trying to collect from. This also holds true within the collection world of physical, mailed letters, but even more so when it comes to emails.
The reality is that 1 in 6 emails sent get blocked by the recipient and marked as spam.
The email world is user-driven. Recipients decide the fate of what happens to your messages. If enough users continue to report the emails coming from your domain as spam, you’ll see less message retention over time. Worse, you could end up on blacklists like where none of your messages will go through.
The point I’m trying to make is that if you continued to send emails every week trying to collect on a delinquent account, they’re going to end up reporting you as a spammer.
I’m not saying that at this point you give up on trying to collect what’s owed to you. Instead, you just need to wait a little bit longer. Specifically, about a month later.
Sample 7: Personable Tone 30 Days
Subject: Invoice #[Invoice Number] is 30 Days Overdue - Are You Receiving This?
Body:
[Customer’s First Name],
I’ve tried reaching out to you multiple times over the past month regarding your balance of [Amount Due] from invoice #[Invoice Number].
I’m writing to you again to let you know that your balance with us is now 30 days overdue.
You can pay your invoice off by clicking this link [Link to Invoice].
It is possible that my previous emails fell through the cracks. Could you please reply to this email to let me know that you’ve received it?
Regards,
[Your First Name]
Sample 8: Corporate Tone 30 Days
Subject: [Invoice Number] is One-Month Overdue
Body:
[Customer’s First Name],
Your invoice #[Invoice Number] with us is now 30 days overdue.
We’ve sent you multiple correspondences regarding this balance. As a result, please reply to this email to confirm you’ve received it.
You can view and pay your invoice online at [Link to Invoice].
Regards,
[Your First Name]
Two Months Overdue
If you’ve sent four email reminders to your client and they still haven’t paid you by the time their account reaches 60 days overdue, chances are they aren’t going to.
Yet, you should still make attempts to collect from your overdue accounts until they reach 90 days. At that point, your cost of labor usually evens up with the balance owed to you.
At 60 days overdue you need to take a firm approach toward your correspondence. If the client hasn’t reached out to you regarding their situation with trying to pay off their balance, they’re undermining your professionalism.
As a result, you need to be as transparent with them as possible. You’re likely fed up with the client at this point. But that doesn’t mean you shouldn’t maintain a professional demeanor. You need to be stern, yet not take this situation personally.
Sample 9: Personable Tone 60 Days
Subject: Payment Required ASAP - Invoice #[Invoice Number] is 60 Days Overdue
Body:
[Customer’s First Name],
I’m sending you another message to let you know that your balance of [Amount] from invoice #[Invoice Number] is still outstanding. Your account with us is now 60 days past due.
As a result, you may incur interest charges on your account per our agreed terms.
Please reply to this email if you have any questions regarding this payment. Otherwise, please settle your outstanding balance immediately by visiting [Link to Invoice].
Regards,
[Your First Name]
Sample 10: Corporate Tone 60 Days
Subject: Action Required - [Invoice Number] is 60 Days Overdue
Body:
[Customer’s First Name],
Your invoice #[Invoice Number] with us is now 60 days overdue. Please satisfy your balance of [Amount] ASAP.
Per terms, we may apply interest fees to your account.
You can view and pay your invoice online at [Link to Invoice].
Regards,
[Your First Name]
Last Effort Before Sending to Collections
If you reach this point, it’s been three full months since your client purchased a product or service from you. The client had a month before their due date to satisfy their balance, this another is two months after that period. In other words, this is the worst-case scenario.
You might as well chalk up accounts that age this long as a loss and move on. That means calling up a collections agency that you’re familiar with and giving them the reins.
Before you do, though, you should send the client one last reminder email that lets them know what’s happening to your account.
Sample 11: Personable Tone 90 Days
Subject: Next Steps for 90 Day Overdue Invoice #[Invoice Number]
Body:
[Customer’s First Name],
This is our final notice regarding your delinquent account with us. We have not received a response from you regarding your 90-day overdue invoice #[Invoice Number].
We must receive payment from you within 15 days after receiving this notice to avoid further collection action from an outside agency.
As a result, you may incur interest charges on your account per our agreed terms.
If you have any further questions you may contact us [Phone Number] between the hours of 8 am - 5 pm.
Regards,
[Your First Name]
Sample 12: Corporate Tone 90 Days
Subject: Final Notice for Overdue Invoice #[Invoice Number]
Body:
[Customer’s First Name],
Your delinquent account with us has an outstanding balance of [Amount] from invoice #[Invoice Number] that is now 90 days past due.
You have 15 days from the date of this message before we send your account to an outside collection agency.
Please contact us over the phone at [Phone Number] for payment options.
Regards,
[Your First Name]
Conclusion
Behind every well-run business is a seamless, internal collections process. Everyone knows that.
The hard part isn’t understanding that you need to implement a process for reaching out and collecting on outstanding accounts. Instead, the difficulty comes in when following through and coming up with effective copy that persuades action.
As I mentioned earlier, you don’t want to count on one medium of communication in your collection efforts. While sending payment reminders via email is one of the most effective ways to ask your clients to pay you, it isn’t the only option.
You should make every effort to reach out to your clients who haven’t paid you yet. That means sending physician mail, electronic mail and even SMS messages.
However, when it comes to writing your payment reminder emails, we’ve got you covered. Feel free to copy and paste any of the samples included within this blog post.
