How To Write a Payment Reminder and When To Send Them

Key takeaways

• Payment reminder emails and notices are essential for maintaining cash flow and preventing overdue payments in business transactions.
• Effective reminders are clear and professional. They should include key details like the amount due, due date, and available payment methods.
• Sending reminders at the right time and with the right tone ensures prompt payment and preserves customer relationships.

Understanding payment reminder messages

At the core of every business is a party that provides a good or service and a customer receiving it. In some cases, such as going through the grocery store’s check-out line, customers pay up front for their goods or services. Other businesses arrange payment methods later.

This is where reminder emails come in. Payment reminder messages are meant to notify a client that they have an outstanding payment and are nearing their deadline. They differ from debt collection notices in terms of tone, timing, and legal implications.

Suppose a plumber bills you for fixing a leaky pipe in your building. If you don’t respond to their original invoice right away, they may send you reminder emails to encourage timely payments. When these notices go ignored, and you’re far past the payment debt, a debt collection agency may get involved and take legal action on behalf of the plumbing company.

Sending these messages to your clients is essential for your business. You’ll improve cash flow, maintain efficient operations, and foster positive customer relationships. How exactly can you facilitate a smooth payment process for successful business operations?

This guide uncovers tips for sending payment reminders to your clients. While message templates offer a great starting point, you’ll need the proper technology on your side. Weave’s communication platform includes comprehensive billing software and reminder tools so payment processes are seamless.

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When to send a payment reminder email

You can’t assume that every customer will take care of their bill before the accepted payment date. Savvy business leaders send timely reminders as the deadline approaches and when customers are past due. How many payment reminders should you plan on issuing?

Experts recommend creating reminder emails based on the following timeline.

Before the payment is due

Life can get busy. If a customer has an unpaid invoice from your business, they may just need a gentle reminder about their upcoming payment date. Your first payment reminder message should come about a week before the deadline.

If you don’t receive payment promptly, you may need to send a follow-up message a day or two before the due date. Proactive messages prompt the customer to pay at their earliest convenience so they can avoid late fees.

Shortly after the customer misses the due date

What if your initial reminder emails go unnoticed? Once the due date rolls around, your efforts to collect payment should become more urgent. Notify the client that their invoice is now past due and subject to late fees.

This message should hit their inbox within the first three days after the deadline passes. The language may be firmer and should let the recipient know that, without a complete payment, they may face additional financial penalties.

When the invoice remains unpaid for several days

Suppose someone’s payment is now a week overdue. If you go this long without compensation, you must keep reaching out to the client to arrange payment immediately. Include their invoice reference number in the email, as well as available payment methods.

At this stage in the process, you may have to send reminder emails at select intervals. For example, your policy could be to send a message when the payment is a week late. Follow-up messages may come when the bill is 14 days overdue, or even a month past due.

When the client receives a final notice

Maintaining positive client relationships is important, so business leaders should extend some grace and leniency to customers. You should give each client ample opportunity to pay their bill by sending them a series of reminder emails. However, if you’ve been sending multiple follow-up messages with no success, it’s time to issue a final reminder.

This stern notice will be your final communication with a client who has failed to pay after a significant period of time. Alert them that you are now escalating the situation, and a debt collection agency will be in contact with them.

How to write an effective payment reminder

Now that you know when to send these messages, let’s dive into the content they should include. Crafting an email is much easier when you have a checklist of items to include and a tone that aligns with your business’s values. Check out the proper components of every payment reminder message below.

Include the necessary payment details.

How can you ensure timely payments if your email doesn’t include essential information about an outstanding or overdue invoice? Every email draft should mention the following:

• The amount owed
• The due date
• The invoice number
• Available payment methods
• Penalties for late payments, if applicable

This information should be easily found within the email. Consider formatting these elements in bold font that’s slightly larger than the rest of the content. Upon opening the message, the recipient’s eye will be drawn to these details.

Keep the tone friendly yet professional.

Payment reminder emails are vital for maintaining a solid business relationship with clients. Therefore, you must be professional when reminding them that their payment is due. Some of your first emails on the subject should be a friendly, polite reminder.

Use positive messaging in every email so the customer doesn’t perceive your business poorly. Phrases that exhibit a positive, informative tone include:

• “This is a friendly reminder that your invoice remains unpaid and is due in one week.”
• “Kindly use this direct payment link to pay online at your earliest convenience.”
• “We appreciate your prompt attention to this matter.”
• “If you have questions about your invoice or payment options, feel free to contact us.”

Steer clear of harsh language like “There are consequences for failing to pay on time” and “We will end our business relationship if you can’t get your invoices paid.” The reminder letter should strike a balance between friendliness and professionalism.

Prompt the recipient to take action.n

Put yourself in your customer’s shoes. They could receive dozens of emails per day and struggle to keep track of them all. Understandably, your reminder email may get lost in the shuffle.

To prevent this, you must include an action-oriented and clear subject line. For example, your first payment reminder email may use the subject line “Don’t Forget – Upcoming Payment Date for Invoice #123.” Subsequent invoice reminders could have the subject line “Settle Your Overdue Payment for Invoice #123.”

The email subject line gives a quick glimpse into the bulk of your message. Putting a call to action in this space doesn’t always guarantee that the customer will follow through. You must include clear instructions in the email itself.

Give the customer directions to submit a payment online or through another method. You should also include contact information so they can get in touch with you about any questions or concerns they may have.

Sample payment reminder email templates

You’re now familiar with the content required to craft a reminder email and instances when you should send them. But what does this look like in practice? Coming up with a reminder message is often easier said than done.

The following payment reminder templates give you a proper starting point. Use them to communicate time-sensitive information to your clients and encourage them to submit an invoice payment.

First payment reminder email

Shortly before the payment due date, you should send a friendly reminder to any client who has yet to compensate you. This message is meant to serve as a gentle reminder and should include the initial invoice as a reference.

See the template below:

Subject: Upcoming Payment Due – [Company Name] | [Invoice #]

Hello [Recipient’s Name],

I hope you’re doing well. This is just a quick reminder that payment for Invoice [Invoice #], totaling [Amount Due], is due on [Due Date]. The invoice is attached for your reference. Please feel free to reach out if you have any questions.

Thank you for your attention.

Kind regards,

[Your Name]

[Your Contact Information]

The language remains positive and lets the recipient know how much they owe and when the payment is due. It not only includes the invoice reference number both in the email subject line and body, but also directs the client to their original invoice.

Notice for an invoice that is days overdue.e

The previous template would apply to anyone who is approaching their bill’s due date and has yet to pay. When the deadline passes, and you have yet to receive payment, you’ll need to issue a firmer reminder.

Use the following email template to nudge a client about an overdue invoice and urge them to act.

Subject: Reminder: Payment Overdue for Invoice [Invoice #]

Hello [Recipient’s Name],

I wanted to remind you that payment for Invoice [Invoice #], due on [Due Date], has not yet been received. The outstanding amount is [Amount Due]. Please let us know when we can expect payment.

Best regards,

[Your Name]

[Your Contact Information]

This template remains professional but shows more urgency. If you need to send multiple payment reminder emails about an unpaid invoice, you can adjust the language in each one to highlight the severity of the situation. For example, consider including a line about late fees that the client will incur for missed or late payments.

Final notice template

You could send a payment reminder notice to your client several times over before and after their invoice due date. If they fail to pay their bill after all that time, you’ll need to get more stern and send one final email. Warn them that this is their final chance to take care of the outstanding payment before the debt collection process begins.

Here’s a final payment reminder template that you can use:

Subject: Final Reminder: Immediate Action Required for Overdue Invoice [#]

Hello [Recipient’s Name],

This is your final reminder for Invoice [Invoice #], totaling [Amount Due], originally due on [Due Date]. Please process this payment immediately to avoid late fees or collection procedures. Attached is the invoice for your reference. Please inform us of your payment plans.

Thank you for your prompt attention.

Best regards,

[Your Name]

[Your Contact Information]

You’ll exhibit urgency about the overdue payment in the subject line, and the language inside the email remains professional yet firm. Just as with previous reminders, this email should also include the original invoice for the customer’s reference. One key distinction is that it notifies them of debt collection procedures and other penalties that will occur if they don’t submit a prompt payment.

Additional tips and strategies

It’s not enough to know when to send your clients payment reminder messages and how to write them. You should rely on other tools and strategies to make the process even more effective.

Say you decide to remind customers of overdue payments when their invoice is one day past due, a week overdue, and then two weeks past due. The best way to stick to this schedule is by automating it. Consider investing in Weave’s automated email and billing software to save time and reduce human error.

Even if you automate when the emails go out, you have to stay on track of any responses you get. Stay organized and make a note of whether the client replies to your email or calls your business. Experts recommend tracking these metrics:

• Average payment time: Learn how long it typically takes customers to pay their invoices so you can potentially expedite the process.
• Open and click rates: See how many recipients actually open the email or click on the payment link inside it.
• Email response rate: You’ll see firsthand how effective your email reminder strategy is.

A late payment can be frustrating for any business owner. When communicating with clients, you must balance empathy with urgency.

You could contact them by phone if several reminder emails go ignored. If you’re able to speak with your client, don’t be accusatory. Acknowledge that mistakes can happen and then politely tell them about your invoice reminders and how they can submit payment.

You may encounter a difficult customer who disputes the scenario. Remain calm and listen to what they have to say. Try to find a solution that will satisfy both of you to avoid damaging your client relationship.

Common mistakes to avoid

Payment reminder emails can be a simple and effective way to get outstanding invoices paid. However, you must approach them the right way and avoid these common mistakes:

• Using aggressive language: A harsh tone can leave a sour impression on clients and potentially damage your relationship with them.
• Being vague: Every email should contain clear details, including the original invoice, various payment options, and potential penalties for overdue payments.
• Delaying reminders: Automate emails to go out on set reminder dates, including before and after the payment due date.

Following these tips can not only foster a better relationship with your customers but also ensure a healthy cash flow for your business.

Best practices for invoice payment collection

Sending invoice payment reminders is just one aspect of your business’s collection strategy. They start as a friendly, casual form of communication to help customers remember that they have a payment deadline approaching. Should they have an overdue invoice, the messages can become more firm and highlight any late fees that may apply if they don’t make an immediate payment.

Your final notice should warn customers that their payment is still outstanding and that you have to escalate the matter. Instead of resorting to external debt collection measures right away, payment reminder emails allow you to be in control of the collection method.

Take advantage of advanced technology to support you in this process. Cutting-edge payment management features from Weave allow you to automate, track, and optimize your collection efforts. Combine this feature with other impressive Weave products, and you can see your business operations thrive while your client relationships grow stronger.

Tightening up your accounts receivable with payment reminders

Have you yet to send payment reminders to your customers? Don’t wait any longer to implement this strategy. Doing so helps encourage timely payments, so your business doesn’t hit any preventable financial snags.

Effective payment reminders also protect customers from incurring late fees or penalties, depending on your company’s policy. Sending these friendly messages helps you maintain a positive relationship with customers and improve your billing strategies.

It doesn’t matter what type of business you run. Weave’s modern platform can help you avoid the frustration and stress of overdue payments. From sending automated payment reminders to transforming your accounts receivable process, Weave has solutions for every business owner.

Explore our suite of products and hear the success stories of businesses that have implemented these tools. Request a demo today to learn more.