See the strongest chasing payment email examples from Chaser. I just wanted to drop you a quick note to remind you that [amount owed on a friendly rapport with your customer and helping future invoices get paid.
When sending collection letters, it’s always important to have a variety of letters on hand for the different stages of the process. With each notification, it’s important to convey the right balance of courtesy and urgency that befits the situation. After all, it would be off-putting for the client to receive a “demand for immediate payment” with their very first bill. At the same time, keeping a friendly, upbeat tone with the sixth notice would fail to convey how serious the matter has become.
Here are some collection letters to keep on hand. These will take you through every phase of the collection process, from the first invoice to receipt of payment.
As soon as the client matter is closed and the charges are assessed the client should receive the invoice right away.
At this phase, use friendly language and personal touches such as the name of the client in the greeting. At the same time, keep the overall message brief, straightforward, and provide specifics when possible. Instead of saying, “Payment is due in 21 days,” a specific due date is much stronger.
Subject line:Invoice No. 1234 from Downtown Law Firm
Dear [client name],
Thank you for giving us the opportunity to provide you with our legal services and expertise.
We have prepared your invoice; therefore, payment is due [30 days from date of invoice]. Follow the link below to review your invoice and make a credit card payment through the secure payment portal. If you have any questions related to the invoice, please don’t hesitate to call or email our office and we’ll be happy to help.
Thank you for your prompt payment. We look forward to serving you in the future.
When it comes to accounts receivable, more reminders are always better. Because people lose track of emails, a single notice may not suffice. Luckily, email costs nothing to send, so send the extra notification. Seven days before the payment is due, send a reminder along with another that arrives on the due date itself.
Subject line:Follow-up No. 1234 from Downtown Law Firm
Dear [client name],
Thank you for giving us the opportunity to provide you with our legal services and expertise. We’re sending this as a friendly reminder that payment is due [Month, date, year], which is [in one week].
To review your invoice and pay the bill, please follow the link below. There, you can follow a secure and encrypted payment portal so you can pay by credit card 24 hours a day, 7 days a week.
Please call or email our office if you have any questions. We appreciate your prompt payment and look forward to serving you in the future.
If the due date comes and goes without payment, it can be difficult to ask for the money. But sending reminders is key to getting paid.
Once the account is seven days past due, make contact by phone before sending another past-due notice. This is an opportunity to inquire whether the invoices have been received and to get a verbal commitment from the client for the next step. If it’s appropriate, you can set up a payment plan with them. Before the call ends, inform them that they can expect an additional notice and send it immediately after hanging up. This will give them access to the payment portal and invoice while the matter is fresh in their minds. At this point, you’ll want to raise the level of urgency in the language.
Subject line: Payment Needed: Invoice No. 1234 for Downtown Law Firm
Dear [client name],
Our records show a balance of $X,XXX for invoice No. 1234, which was due on [date] and is now X days late. We would appreciate it if you would inquire about the status of this payment and make sure we receive it as soon as possible.
Please review your invoice, which is provided through this link and make a credit card payment. Otherwise, please contact our office this week to let us know the status of this payment.
Once the account reaches 45 days past due, it’s time to make the language of the email more urgent. Keep the language courteous but convey to the client that if payment doesn’t arrive by a certain date, a specific action will be taken.
Along with sending these notices, attempt contact with another individual in the organization with a phone call, mailed letter, and email. For emphasis and clarity, use bold text on the invoice number, amount, and due date.
Subject line:Final Notice: Invoice No. 1234 for Downtown Law Firm
Dear [client name],
This is another reminder our law firm has yet to receive the $X,XXX on invoice No. 1234.
Please be aware that if payment does not arrive by [date of 60 days past due], legal action may be taken to enforce your obligation to pay.
To avoid legal proceedings, please pay the full amount promptly. Use the provided link to review your invoice and submit a credit card payment today. Contact our office immediately and advise us on the status of your payment.
When your clients make a credit card payment, send a brief email. This assures them the payment was received while making a great impression.
Subject line:Thank You for Your Payment to Downtown Law Firm
Dear [client name],
We received your payment of $X,XXX on invoice No. 1234, which was credited to your account on [date].
Thank you for entrusting us to provide you with our legal services. We look forward to serving you in the future.
The key to getting paid is sending notices and reminders frequently. It may seem like overkill, especially if you’re accustomed to the cadence of mailed notices but given the volume of emails that land in someone’s inbox every day, an emailed notice can be easily overlooked or forgotten. Sending repeated emails keeps payment in front of your client and your firm in front of your cash flow.
To learn more about payment acceptance and collections best practices, visit clientpay.com/law-technology-today.
Law Technology Today
Politely Remind a Customer That Payment Is Past Due — Collections 1 of 6 Copied! This is just a friendly reminder that your June payment of $ is overdue.
The aim of the late payment reminder letter as a tool for managing receivables is to reduce the number of outstanding debts, and to avoid the loss of receivables. At the same time, a professional dunning system is also geared towards retaining customers. This should be reflected in the tonality, as well as the number of escalation levels, which we will outline here to demonstrate the business obligations to partners involved.
The legal basis for out-of-court late payment reminder letters by companies, lawyers, and credit bureaus is found in the Sale of Goods Act 1979 and the Late Payment of Commercial Debts (Interest) Act 1998 . Trading Standards oversees the implementation of these regulations. If your dunning procedure is unsuccessful, and it is necessary to bring your claim to a court, the Small Claims Court handles such matters within the UK.
Central legal concepts within the framework of the dunning system are maturity and default.
If you run a business or are in charge of collecting payments from customers, then you know how challenging it can be to get people to pay what they owe. This is where an overdue payment reminder letter can be one of the best tools in your payment collection toolbox. This type of letter is fairly straightforward: it notifies the customer that they are overdue on a bill and need to make a payment. Instead of having to make a phone call, which can be very uncomfortable, this letter is a much more polite way to remind your customers a payment is overdue.
Anyone who bills customers for products/services can benefit from using a payment reminder letter. This includes doctors, lawyers, loan companies, and any business that allow customers to pay in installments. The best part about these letters is that they can be used over and over again. All you need is a basic payment reminder email template, then it’s just a matter of plugging in your customer’s information and sending it in the mail.
The key for these letters to be effective is by how they are written. First, the letter must be polite. Remember, this is a reminder that a payment is overdue. You don’t want to insult the customer or make them angry at you just by sending a reminder. Keep the tone of the letter friendly, but at the same time professional.
Further, key information must be included in order for the letter to be effective. Some of this information includes; amount owed, the due date is past, how much longer the customer has to pay until further action is taken, and methods of payment you accept, like checks, credit cards, and cash. All this information must be very clear and concise so the customer can understand both why they are receiving the letter and how they can rectify the situation. The information they need to make their payment must be very straightforward.[ads]
We have samples of overdue payment reminder letters that you can use as a template to fit your own business. Our templates are friendly, easy to use, and will save you time because you won’t have to write a letter from scratch.
We have samples of overdue payment reminder letters that you Our templates are friendly, easy to use, and will save you time.
You've done the work. You invoiced the client over 30 days ago. You're still waiting for payment a week over the invoice deadline. It's time to chase but, quite frankly, you'd rather play Justin Bieber on constant repeat and stick red hot nails in your eyes than speak to your client.
Let's face it. Chasing late payments on invoices is one of the toughest and most awkward jobs for any small business owner. It's never easy, emailing or phoning a client to ask for money. But this is business. And you are entitled to be paid for the work you've carried out.
If you're struggling and you're sick and tired of dealing with late payers, here are our top tips to help you get over that awkward hump (and avoid any issues).
Firstly, you've done the work and the client is happy, so you're entitled to get paid. And, more importantly, you're entitled to get paid on time. You're not a bank. You're not able to work in credit. If you don't get paid, you can't pay your bills – full stop.
With all this in mind, you should stop thinking you're being rude by chasing payments. It's the client who is being rude for not paying! Plus, you are totally within your rights to ensure you settle invoices. Remind yourself of these points whenever you feel yourself hesitating in future.
Terms of invoicing are one of those things that every small business owner will have to establish with each client. Talking about these terms early on will avoid any awkwardness further down the line.
Not sure what terms to apply? You really can set your own. You can request payment upfront, although this might be challenging. (You could tell brand new clients that the first invoice always requires payment before work begins – just to get going. It's worked for me!)
You could ask for a deposit – try 50% of the total project cost before work begins. That way, you've got a little insurance behind you, should payments be delayed in future. Or you could simply go for the standard 30-day terms. It's up to you.
Some people charge an extra 3% after 60 days – others 2% after 30 days. Another creative stipulates that if the final invoice isn't paid within 30 days, a 5% 'delayed payment' fee is charged. And that initial 5% figure is then added to each recurring 30-day period until the full amount is received. It's really up to you how you set your terms. But be warned – great client relationships are built on trust. You have to ask yourself whether it's worth threatening interest before you've even had a chance to prove your worth.
Read this very helpful guide from the government on Late Commercial Payments. It points out that the interest you can charge if another business is late paying for goods or a service is ‘statutory interest’ – this is 8% plus the Bank of England base rate for business to business transactions. So, if the base rate is currently 0.5% – this means statutory interest for a recent debt would be 8.5%. Read more on Recovering Debt.
Writing an email to chase for payment is hugely difficult and will naturally take you some time to construct. You don't want to come across aggressive but you need to be firm. You don't want to seem too demanding but you have to ensure payment is made. In which case, save yourself time by having a prepared script you can call upon. Here are some handy examples:
This is a friendly reminder that invoice 33 is now due for payment. I'd really appreciate if you could settle at your earliest opportunity.
And if several friendly emails don't lead to payment? Well, it's time to start getting serious and remind your client of the terms you originally set out. You could write something like:
Payment still hasn't been made for invoice 33. I attach another copy with my payment details.
Just a friendly reminder – if payment is not received within 30 days, I reserve the right to add late payment charges to your account, as detailed in my terms.
Hope that makes sense.
If you've emailed several times, you've become increasingly firm and you still haven't been paid – pick up the phone and call your client. Sometimes having a chat is all it takes to ensure payment. Keep phoning every other day to add some pressure and that usually does the trick.
Or, if you really can't face the task, hire a freelance virtual PA to do the chasing for you. Sometimes having someone else do the chasing adds more authority and credibility to your business and gets clients worried about not paying.
If you really can't stand sending out those email reminders, why not automate away some of that awkwardness by using an online service to send out invoice reminders on your behalf?
FreeAgent offers this service beautifully. I use it for Creative Boom and my own PR business, Boomerang. It allows you to write your unpaid invoice reminder email, then you can set FreeAgent to send it automatically when an invoice becomes overdue. Job done! It won't necessarily ensure payment is made, but at least it saves you from another awkward conversation or the hassle and time it takes to chase for payments.
Sometimes, invoices don't get paid on time because you've not sent them to the right person or department, or followed the client's payment process. So if all else fails, find out who to send invoices to, call them and become their friend. Ask them directly how to ensure you get paid on time, as there'll be different processes in place with every client. It might be that you have to include a PO number or a specific date. Whatever it is, follow that process and you shouldn't have a problem in future.
Above all, use your discretion. Clients are only human. They're busy too. Which means they can easily forget about your invoice and sometimes just need a gentle nudge. Don't assume the worst. Use a gentle approach initially and, if that doesn't work, try a different tact. Most clients will pay – you just have to be proactive and persistent. Good luck!
Sometimes the customer may have forgotten about the due date of the payment and a letter of reminder gives them that benefit of doubt. Table of Contents.