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Short payment received letter

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Short payment received letter
June 13, 2019 Anniversary Wishes For Parents 4 comments

This is a document written to the customer reminding them to pay an overdue invoice A Professional And Brief Sample Letter For Payment Reminder . Indicate that the payment has not yet been received; Give payment methods available.

Sample letter for recovery of payment from your clients, customers and distributors. Format of request and notification letter to a customer from the company, requesting him to clear the remaining payment.

Payment Letter For Recovery

Dear customer,

I am writing you on behalf of Ufone. You have been our dear and most regular customer for 3 years. We respect your such loyalty to the firm and we appreciate your consistency and firm belief in us. We also feel proud on serving good customers each and every day. Respected customer, there has been an issue for last 3 months regarding the payment of the telephone bills. We have not received a single payment from you related to your telephone bill for three months. Based on your good record and punctual payment plan we have so far tolerated this deal and we have not terminated your connection. Dear customer it is to inform you that you are kindly requested to pay back the remaining bill of the three months or in the next month we regret to tell you that we may have to terminate your telephone connection owing to your non-paid bills.

I hope that you keep the position of company in mind and will decide to pay the remaining bills as soon as possible. Doing so will save us from the hectic work from which we have to go through every day.

Thanking you in advance

Yours sincerely

Mamoona

Recovery Manager

Related

Sample Letter to Supplier for apologize due to Delay in Payment of It is to inform you that we are continuously receiving short payments from.

Inform a Customer of an Incorrect Payment Amount and Ask For the Balance

short payment received letter

As a small business owner, you’ve probably streamlined your business finances down to a science. You know exactly how to create your invoice, and you send it out immediately after completing a job. Despite your organization, however, it’s pretty much inevitable that a few of your customers will fail to pay their invoices on time. And, when that day comes, you’ll probably wonder how to send a payment reminder professionally.

If a client doesn’t pay you on time, you might be tempted to let that delinquency slide to avoid confrontation. Or, on the other end of the spectrum, you might feel like you need to be a little too harsh when you send that late payment reminder email.

How do you strike that balance, then? What’s the best way to send a polite payment reminder email that’s firm enough to get you the compensation you need for your hard work? (And, not to mention, for tax purposes, since it’s not always possible to write off unpaid invoices.)

We take the guesswork out of the occasionally uncomfortable, but crucial, task of requesting late payments from delinquent customers. These five professional payment reminder email templates will help you feel like you have a handle on your late payments—even if you need to get to red-alert status—and, hopefully, get you your balance due.

And, if sending late payment reminder emails still makes you cringe, we’ll show you a few other solutions for late payments as well. If overdue payments are threatening your business’s cash flow, and you need an immediate solution, consider invoice financing.

How to Ask for Late Payment in an Email: 5 Email Templates to Follow

The best practice, of course, is for your customers to send payment immediately after receiving your invoice. However, “best practices” is never guaranteed. So, if you’re waiting on a bill from a job you completed weeks ago, and you’re worried about a late payment, it’s smart not to wait for that late payment to occur. Rather, send your first follow-up email a week before the payment due date.

Then, if you’re facing a late payment, you’ll need to continue sending follow-up emails until you receive your bill. 

Asking for late payment can be tough, but the key is to modulate your tone across these reminder emails. You’ll need to be equal parts polite and firm—but, depending on how late that payment is, your tone may need to tip in one direction more than the other.

We’ll show you exactly what to write, and when to hit send:

1. Initial Reminder: One Week Before the Bill Due Date

Email subject: Follow-up on invoice #10237

Message:

Hi John Doe,

I hope you’re well. This is just to remind you that payment on invoice #10237, which we sent on March 25th, will be due next week.

I’m sure you’re busy, but I’d appreciate if you could take a moment and look over the invoice when you get a chance. Please let me know if you have any questions.

Thank you!
Jane Doe

Why this payment reminder works: Your first reminder should be short, friendly, and informative. There’s no need to bother your customer with too much information, and you don’t need to request payment straight away as the bill isn’t due yet. In this email, the customer should recognize that you regularly track your invoices, so you’ll get back in touch with them if they don’tsend their bill on time.

2. Second Reminder: On the Day the Payment Is Due 

Email subject: Invoice #10237 is due today

Message:

Hi John Doe,

This is just a reminder that payment on invoice #10237 (total $5,400), which we sent on March 25th, is due today. You can make payment to the bank account specified on the invoice.

If you have any questions whatsoever, please reply and I’d be happy to clarify them.

Thanks,
Jane Doe

Why this payment reminder works: This is one of the most important emails in the sequence, since you’re requesting your first call to action to your customer to make their payment. It should be short, straight to the point, but still friendly—that bill isn’t technically overdue yet!

3. Third Reminder: One Week After Late Payment Was Due

Email subject: Invoice #10237 is one week overdue

Message:

Hi John Doe,

Our records show that we haven’t yet received payment of $5,400 for Invoice #10237, which is overdue by one week. I would appreciate if you could check this out on your end.

If the payment has already been sent, please disregard this notice. And if you’ve lost this invoice, please let me know, and I’d be happy to send you another copy.

Thanks,
Jane Doe

Why this payment reminder works: This is the first email addressing that the invoice is overdue, so you’ll want to start firming up your tone. Include details about the invoice such as invoice number, amount due, and repayment timeframe for a clearer reminder of what the customer owes, and when they owed it. Also offer a copy of the invoice, as sometimes they do get lost or accidentally deleted.

4. Fourth Reminder: Two Weeks After Late Payment Was Due

Email subject: Invoice #10237 is two weeks overdue

Message:

Hi John Doe,

I wrote to you several times to remind you of the pending amount of $5,400 for invoice #10237. As another reminder, payment was due two weeks ago.

If you have any queries regarding this payment, please let me know. I’ve also attached a copy of the invoice to this email, in case the original was lost or deleted.

Could you reply to this message and let me know you’ve received it? Thank you.

Regards,
Jane Doe

Why this payment works: Okay, now it’s time to get more direct. In this email, you should clearly ask for payment, and ask the client to confirm whether they have received the message. That way, they have one less excuse to ignore your email.

5. Fifth and Final Reminder: One Month After Late Payment Was Due

Email subject: Invoice #10237 from 3/25 is overdue—please send payment ASAP

Message:

Hi John Doe,

This is another reminder that I have yet to receive the $5,400 owed on invoice #10237. Please be aware that, as per my terms, I may charge you additional interest on payment received more than 30 days past its due date. 

Again, please reach out if you have any questions on this payment. Otherwise, please organize for settlement of this invoice immediately.

Kind regards,
Jane Doe

Why this payment reminder works: At a full month overdue, and several ignored attempts to reach out to the customer, you’re entitled to take a tougher approach about reclaiming your compensation. But don’t let it get personal. Making accusatory statements toward your customer undermines your professionalism. 

What If Email Reminders for Overdue Payments Don’t Work?

If you still haven’t received payment after a full month, it’s time to step out from behind the email curtain and call your client directly. First of all, it’s possible that your client changed email addresses, or accidentally provided you with an incorrect email address. Or, if you’re working with a larger institution, you may be sending your invoice requests to the wrong person or department.

Either way, it’s always more effective to speak directly with your client, person to person, than it is to send an email. That way, you’ll give them the firm but kind reminder that they need to pay up, and hear their side of the story firsthand.

A Better Strategy? Prevent Late Payments in the First Place

Even with these email templates to arm you, you still might feel a little uncomfortable chasing down your customers for their money. So, the best way to avoid that discomfort is to prevent the possibility of late payments in the first place.

Implement these invoicing tips upfront, as they may help you avoid late payments down the line.

  • Be honest: If you’re at all concerned about the possibility of overdue payments, gently make your client aware of your repayment terms either before or right after signing on for a job. That way, you won’t leave it up to chance that your customer will (carefully) read your repayment terms when they receive their first invoice.
  • Be clear about your time frame: Often, business owners write “Due upon receipt” as their repayment terms on their invoices. But that’s a little vague, and it leaves too much room for your customers for incorrect interpretation. Instead, clearly indicate your repayment time frame in terms of days, e.g. “Due 30 days after receipt.”
  • Charge interest on late payments: Just as you’re privy to interest charges on late business credit card payments, your clients can also be held financially accountable for paying you late. Clearly indicate the terms of your interest charges directly on your invoice. If you’re not sure how much to charge for late payments, first read up on best practices when including finance charges on your invoice.

It also helps avoid overdue payments if you send your invoice to your customer immediately after you complete a job. When your goods or services are still fresh in the customer’s mind, they are more likely to pay you on time.

One other tip is to provide early payment discounts to your customers. When your customers pay early, offer a small discount like 1% off. This might not seem like much, but it could be just the nudge to get your customers to pay you on time.

With Late Payments, Be Professional—And Kind

If your invoice payment is seriously overdue, it can be hard to keep your cool. After all, “doing business” means more than doing your job well. It also means receiving timely compensation for your hard work. So if you don’t receive that compensation, you’re more than entitled to be diligent about tracking that money down.

Keep in mind, though, that late payments are rarely a personal affront. Most of the time, delinquent customers have simply been busy, distracted, or dealing with an overflowing email inbox and lost or forgot about your invoice in the process.

So, whether you’re sending an initial reminder about an impending payment deadline, or if you’re checking in on the status of a weeks-late invoice payment, remind yourself that you and your customer are both human beings. And human beings make mistakes! Maintain that attitude even when you need take a firmer approach toward reclaiming your compensation.

If you follow the email sequence and tips above, you’ll definitely notice your overdue invoice pile going down. But you’ll also ensure that you’re establishing and preserving trust between you and your client, which, in the long run, is just as important in running a successful small business.

Editorial Note: Fundera exists to help you make better business decisions. That’s why we make sure our editorial integrity isn’t influenced by our own business. The opinions, analyses, reviews, or recommendations in this article are those of our editorial team alone. They haven’t been reviewed, approved, or otherwise endorsed by any of the companies mentioned above. Learn more about our editorial process and how we make money here.

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Short of Payment Letter for Recovery

short payment received letter

NOTE: This letter is a sample that must be customized to fit the facts of your individual situation and claim. All bracketed and underlined portions must be completed or revised before sending. Use this letter to request an updated, itemized list of all payments your insurance company has made on your claim.

(Date)

(Name of Adjuster or highest ranking ins. co. employee)
(Name of Insurance Company)
(Address)

Re: Claim Number: ______________
Date of Loss: _______________
Name of Insured: _____________________________
Address of Insured Property: __________________________________________________

Dear [INSURANCE COMPANY],

Please provide [me/us] with complete and current list of all payments made to date by [INSURANCE COMPANY] on this claim. Please include the status of all payments made by [INSURANCE COMPANY], showing date of payment, number of the check, amount paid, and under what area of coverage the payment applies.

If a check includes payments under more than one area of coverage, please explain the break down.

Please send [me/us] this information within the next fifteen (15) calendar days to the mailing address below. And, from now on please provide [me/us] with a written status report each month of payments made by area of coverage for [my/our] files.

Thank you in advance for your prompt handling of this request.

Sincerely,

YOUR NAME
MAILING ADDRESS
 

This will give them sufficient notice that their payment is due and of the consequences that they will Your payment notice letter should be short and to the point.

How to Word a Warning Letter for Outstanding Payment to a Client

short payment received letter

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For any kind of small business, few things can throw gum into your works like a late payment. After all, your bills come regularly – so it’s an issue when your payments don’t. When late payment goes too far, you may get to the stage where you need to send out a warning letter for outstanding payment. This article shows you how to do so.

Late Payment Realities

Sadly, late payments are a really common issue for small businesses and freelancers. The freelance software company Bonsai reports that 29 per cent of invoices on their platform are paid late to freelancers. Thankfully, however, 75% of invoices are paid within 14 days of the due date and 90% are paid within a month.

So what do you do when a payment is radically overdue?

Obviously, the hope is that you don’t arrive at that stage; Routinely and consistently following up with polite reminder emails and phone calls is usually enough to obtain payment from most clients. I cover that in more detail below. However, sadly it sometimes becomes necessary to make everything rather more formal.

That’s when you send what’s known as a “Demand Letter” in the U.S. It’s known as a “Letter Before Action” in the U.K. (If you’re elsewhere, be sure to check the correct legal wording for your country).

Let’s first look at the templates for overdue payment reminder letters. Then you can read on to find out how to potentially avoid getting to the point of having to send such letters.

Warning Letter for Outstanding Payment Template 

The first step is to send a letter letting the overdue client know about their late payment, and possibly any late fees you use. My warning letter for outstanding payment to a client looks like this:

To Whom It May Concern:

I have included my invoice(s) for [work performed]in [month(s)] for [Their Company/Website].

I have not seen payment for the [work performed]on [invoice(s) [XXX]], and that invoice was due on [due date]. Please note that I’ve instituted at 1.5% late fee for each month that an invoice is past due, which means that fee would apply [date the fee applies]. I’ve updated the invoice(s) to reflect the possible late fee.

If we need to work out smaller payments at regular intervals, we can discuss a plan and that could waive any late fees.

If you have any questions or concerns, feel free to contact me.

Sincerely,

[My letter header and footer have my contact information]

I usually send this letter about five business days after the invoice’s due date (to give payment time to arrive) and keep sending similar wording once per week, if needed, throughout the month before the fee hits.

If you’re in the U.K., there is some additional legal wording you can use to sound more official.

MyCreditControllers uses this wording:

“We have a statutory right under the Late Payment of Commercial Debts Regulations 2013 to add interest and late payment compensation to the sum outstanding. This currently equates to £xxx. Therefore, the amount to pay as at today currently stands at £xxx.”

Usually, a warning letter for outstanding payment to a client will get the client in gear to avoid paying extra. If it does not, you then move onto the Demand Letter (U.S.) or Letter Before Action (U.K.), which serves the purpose of informing the client that they may be liable to legal action or debt collection to recover the overdue amount.

Demand Letter and Letter Before Action Templates

When writing a Demand Letter or Letter Before Action, there is one major tip to always keep in mind: stay polite. You should sound firm, but never sound angry or offensive. Offending the other party will not make them want to pay any faster!

Beyond that, in the U.S., the Demand Letter should summarize what has happened, since if you end up in small claims court, it can actually be used as evidence for your case. Your letter should also contain a specific demand – essentially for the amount of money the client owes you. The final step is to outline what will happen if your demands are not met, such as taking the client to small claims court.

As such, your Demand Letter will look something like this:

Dear [Name of Client],

I am writing because you have not provided payment by the deadline of [date]. Please see the attached invoice detailing the outstanding sum you owe.

On [date]I completed [the service you completed or product you provided], which was provided per our agreement.

The total balance that is currently due is $xxx. It is important that I hear what your plans are for paying this balance.

I will allow 10 business days for you to make payment arrangements, until [date]. If I do not hear back, I will be submitting this against you in small claims court (or submitting to a collection agency, whichever your policy for late payments is). 

Sincerely,

[Your Name]

[Contact Information, including email, phone number and a business name, if you have one]

In the U.K., the letter looks very similar. There are just slight wording changes based on how the legal side is handled in the U.K.

[Customer Name]

[Customer Address]

Without Prejudice

Outstanding Invoice(s) – [The Company’s Name]

Final Letter Before Action

We see that you have not paid your outstanding invoice(s). You still owe [£ XXXX Amount], for [invoice XXX], which was dated [invoice date]and due [due date].  (You can put a chart format here if multiple invoices are due.)

Please note, if the full payment of [Total Amount] is not in our bank account by [Date – can be five to 10 working days from the date letter is sent], we will begin legal action to recover the past due amount total, courts costs and statutory interest of 8% above the Bank of England base rate (fixed for the six-month period within which date the invoice became overdue).

[Note: instead of legal action, you may state that you will turn the debt collection over to a third-party debt collection agency.]

Please pay in full now to prevent legal action.

We apologize if you have paid in the last 24 hours.

This is our final communication regarding this late payment.

Sincerely,

[Your Name]

[Contact Information, including email, phone number and a business name, if you have one]

How to Avoid Having to Send a Warning Letter for Outstanding Payment

Getting to the point of sending a warning letter for outstanding payment is a huge pain for any freelancer. Who wants to deal with debt agencies and legal cases if the letter doesn’t get a response?

So, below are some tips for not having to even go there.

First, make sure you have a late payment interest policy. Typically, this can be is 1.5 per cent interest for every month after the invoice due date, according to the Freelancer’s Union.

You should also keep communication open and consistent with these tips:

  • Make your payment terms very clear from the start, and enforce them consistently.
  • Put late payment policies in your contract or invoice.
  • Remind the client about the invoice as the due date approaches. Something simple can work, like “Just a friendly reminder that this invoice is due on [date].”
  • Check in again a few days after the deadline, just to give a reminder again or ask for an update.
  • Remember to check in weekly reminding about late interest for the first 30 days late if you don’t get a response.
  • Phone calls can yield better responses than emails. You come across as more human and less easy to ignore than a slew of letters and emails.
  • Get to know the financial director or whoever actually pays the invoices at every company – a friendly relationship with this person will pay dividends!

Again, always stay friendly and professional. Say something like, “Don’t hesitate to contact me if you have any issues or concerns,” and provide easily visible contact info.

Cash Flow Options for Freelancers

When you’re self-employed, late payments will happen. If you keep up on client communication, you can mitigate them, but it is part of the nature of freelancing at times. And even if you have the most perfect clients, work can come in bursts. So, when your payments are infrequent in a world with frequent bills, you need to find ways to keep your cash flow steady.

One idea is to try to have six months’ of monthly expenses in a specific savings account. Then if a payment is late, you basically take a loan out from your savings account to pay the bill and then replenish your account when that payment comes. You can also “borrow” from it when work is slow, and then stock it back up during the busy times.

Savings accounts aren’t the perfect option, however. A large emergency expense can wipe the thing out. You may want to have a credit card as a backup.

There’s also the option of business overdraft – an agreed facility from the bank that allows you to withdraw beyond your available funds. Different rates can apply to these, and they can get expensive. Most expensive of all is an unauthorised overdraft – so if you think you’ll need the facility, get it organised before you need it!

Cashflow for freelancers goes up (as we discuss here) and down (as we discuss here). It’s just a part of the freelance lifestyle. Hopefully, the need to send a warning letter for outstanding payment will be a rare one for you – but why not bookmark this page for when you need it – just in case!

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Sample letter informing creditors that you have no ability to make your payments. You can customize the letter for your situation.

short payment received letter
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