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Letter reminding of payment
October 02, 2018 Anniversary Wishes 4 comments

Dear Parents, The faculty and staff would like to take this time to thank all parents for their continued support of our school. Without it we certainly would not have.

Email is an incredibly effective tool for credit control. Here at Chaser, we’ve seen that approximately 80% of unpaid invoices can be successfully collected through email chasing alone. As powerful as that is, a shocking number of finance teams don’t keep their email sword sharpened, and are likely to see drastically subpar success with their credit control.

Common unpaid invoice email aberrations include unfriendly tone, appearance of automation / lack of humanity, an aggressive or judgemental approach to overdue invoices, and even chasing payments from the wrong person entirely.

We get that writing invoice follow up emails from scratch is time-consuming and difficult, or that existing payment chasing email templates are ineffective or no longer have impact due to overuse. We understand that some customers reply venomously, ambiguously, or simply not at all. Then you have your clients who are always paying late no matter what..until you read this guide, of course.

Forget that - those problems are a thing of the past. Today we’re sharing our 4 most effective email templates to chase for payment and get your invoices paid. These are our own strong, tried and tested, best practice template samples, which are the default for our Chaser users. If you'd like to learn more about automating your credit control, consider signing up one of our weekly webinars here. Please feel free to save the following templates in your email client of choice and give them a try - you’ll be pleased with the results.

Before an invoice is due

Before an invoice is due, there’s only one job you need to focus on doing - ensuring the conditions are right for your customer to be able to make payment. Outside of raising and issuing invoices as close as possible to the sale date, the only other task you need undertake is politely inquiring if everything is on track for the customer to make payment by the due date.

This not only ensures your invoice is fresh in their mind and harder to “forget” to pay, it also goes a long way in building and maintaining a great working relationship.

Our best practice chasing payment email template for this situation is as follows.

Note that anything inside the italicised [square brackets] is a placeholder that you should replace with the appropriate information for your specific overdue invoices.

Subject:
[Your business’ name]: invoice [invoice reference number]

Body:
Hi [Recipient’s first name]

I hope you are well.

I just wanted to drop you a quick note to remind you that [amount owed on invoice] in respect of our invoice [invoice reference number] is due for payment on [date due].

I would be really grateful if you could confirm that everything is on track for payment.

Best regards

[Sender’s first name]

A clear and concise subject line works wonders. With most inboxes limiting the subject line to just a few words, it’s imperative that say as much as you can with as little text as possible. Couple this with the consideration of how many emails your recipient receives per day, you’re fighting a battle to get your email noticed and actioned.

Our testing has found the combination of your business name and the invoice reference number to hit the sweet spot. It lets the recipient know precisely who (in this case, your business’ name) and what this email refers to.

In the body of the email, an opening line of well wishes is a nice way for both you and your recipient to check yourselves and a reminder that you’re both fellow humans just trying to do their jobs. As a bonus, it’ll help lower any defensive guard they might have in place and help you towards achieving a mutually agreeable outcome.

The rest of the email is clear and concise, much like the subject line. Framing the inquiry as casual (here, “just wanted to drop you a quick note”) goes a long way to dial down the formality and diffuse any potential to be interpreted as harassing them about payment. Remember to cover off:

  1. The amount owed
  2. The invoice reference number
  3. The due date

Finally, just as the email was topped with well wishes, it’s equally nice to tail it with a polite inquiry about the progress of the invoice’s processing (here, “I would be really grateful”). Articulating your inquiry as such works wonders in building a friendly rapport with your customer and helping future invoices get paid quickly and easily.

Before you send this, don’t forget to attach a copy of the invoice. If they already have it readily on hand, no harm done, but it prevents getting held up by claims of “oh, I never received that invoice…”, should they arise. Of course, if you’re emailing them about multiple invoices, attach a customer statement as well.

When an invoice is early overdue

In the early days after an invoice is overdue, you no longer just want to politely nudge your customer to see if payment is on track. You should still be polite, of course, but your goal is now to get a payment date agreed as soon as possible.

Here at Chaser, we offer the following template.

Subject:
[Your business’ name]: invoice [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.

Best regards

[Sender’s first name]

It follows many of the principles outlined for our Before Due email template. One key difference is the ask for when payment can be expected. This puts the (light) pressure on them to reply to you, as you’ve asked for a piece of information rather than just expressed the problem of the invoice being unpaid. It also pushes them to define a timeframe within which they will pay, creating another “promise” (beyond the original invoice) that they will be inclined not to break, lest they want to develop a reputation for being unreliable.

As with Before Due, remember to attach a copy of the invoice to again prevent getting held up by claims of “oh, I never received that…” (remembering to include a customer statement if emailing about multiple invoices).

We recommend Early Overdue emails are sent at a frequency of once every 1-2 weeks so that you project credit control competence to your customer but without harassing them.

When an invoice is late overdue

If you’ve chased a customer repeatedly for an overdue unpaid invoice without any luck, it’s time to change tactics. The best practice email template continues to try and achieve the goal of Early Overdue (getting a payment date agreed). The differentiators are letting the customer know late payment is not okay, and adding an element of urgency to payment reminders.

Subject:
[Your business’ name]: invoice [invoice reference number] OVERDUE

Body:
Hi [Recipient’s first name]

I hope you are well.

We have yet to receive payment from yourselves of [invoice amount owed] in respect of our invoice [invoice reference number] which was due for payment on [date due].

This invoice is now [number of days overdue] days overdue and is becoming really problematic for us. Please could you let us know about when payment will be made as a matter of urgency.

Best regards

[Sender’s first name]

You can see that along with the other templates so far, this still shares the core principles of clearness, conciseness, and politeness. Letting the customer know late payment is not okay is achieved with the line describing the late payment as “becoming really problematic for us.” This taps into your customer’s guilt about paying late but without getting aggressive or attacking them. Doing the latter will only put them on the defensive and not help you achieve a mutually agreeable outcome at all, not to mention sour the relationship.

The element of urgency is very literally spelled out in the body with the line “as a matter of urgency,” as well as made very clear with an “OVERDUE” in the subject line.

Again, remember to attach a copy of the invoice to prevents getting held up by claims of “oh, I never received that…”, should they arise, including a customer statement if emailing about multiple invoices.

When an invoice is paid
Whether it was early, on time, or two weeks late, when a customer pays an invoice you should be sending them “thanks for paying” emails. The impact can only be positive - they’ll either 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.

We recommend the following template for thanking your customers.

Subject:
[Your business’ name]: invoice [invoice reference number]

Body:
Hi [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.

Thanks

[Sender’s first name]

As with all our above templates, the Thanks For Paying template follows many of the same core principles, such as clearness, conciseness, and politeness. This goes an enormously long way to building a great relationship with your customers and helping you get paid sooner in future.

Want more?

To learn about how you can automate your credit control process, speak with your Accountant or Bookkeeper about the Chaser app, and sign up for our free webinar here.

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CC: (insert other relevant emails (e.g. Business Director or owner) here) Subject: Invoice Payment Reminder - IMPORTANT. Dear (insert accounts payable name).

Reminding About Collection of Payment Letter

letter reminding of payment

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Collecting Unpaid Invoices the Easy Way

Written by Allan Branch on Jun 13

The purpose of this article is to help you when get paid when a client isn’t paying their invoices on time. You can prevent this situation by keeping outstanding invoices from killing your business.

Get Your Facts Straight

Before you send a nasty email open your calendar, get your copy of the invoice you sent, and get your facts straight. (Your LessAccounting invoice dashboard has all this information.)

Don’t embarrass yourself by jumping on a customer without knowing what you’re talking about.

Set aside the factors that are beyond your control. If the post office lost your invoice, or the customer’s spam filter ate your email, that’s not your fault. Stick with what you know and what you can control.

How long will I wait before I contact the customer?

Some businesses give a customer two weeks past the due date, while others give them one week. There are even those that contact the customer before the due date, just to remind them it’s close.

Pick what you think is reasonable. Test it on your customers. Tweak it if necessary.

Making Contact

As the first means of contact, most businesses start with email. It’s a low stress solution and it might be a quick fix. After all, your email may spur the customer into action. Maybe it is something simple like a spam filter issue. The customer reads your reminder, feels bad, and sends you the check that same day.

So don’t go into a rage on that first email. In fact, don’t rage in any of your contacts. Be cool and professional. Anger and threats won’t help what is already an awkward situation.

Let’s look at some email examples:

Unpaid Invoices Collection Example Emails

Here’s an example of an email that’s clear yet friendly:

Dear ----,

I hope this note finds you well. I want to follow up on an invoice I emailed on April 1. I haven't received the payment yet, so I wanted to ensure the email isn't lost somewhere in depths of cyberspace. Would you please check to see if the accounts payable department has received it? I'll be happy to resend if necessary. Otherwise, I look forward to receiving payment within a week.

I really appreciate your help! Thanks!

Donnie Cooper
Inboundable Inc

See what Ms. Adams does here? She states when the invoice was sent, but takes into account that accidents happen. Maybe the original email was lost?

Also, note that last line in the paragraph: “I look forward to receiving your payment within a week.” This is a classic “Call to Action.” She makes it clear she expects the payment, and she expects it within a certain time period.

Here’s one from Patrick Coombe of Elite-Strategies that uses subtle but effective tactics.

Dear ----,

We wanted to touch base with you about your account here with us. We hope that you are satisfied with the services that we've been providing over the last 4 months, and based on your feedback on our last phone call we've noted that you are satisfied based on the amount of return you've been getting on your investment with us.

As of last week, your account is past due. We are a small business and each payment is necessary to fuel our operations, which includes the in-house technicians that we pay to work on your campaign.

You can pay us by check, credit card, or PayPal.

If you have any questions, please let us know and we'd be happy to respond.

Thank you for your patronage.

Mr. Coombe reminds the customer of their past satisfaction with his service. He goes on to explain why payments are vital to a small business, and he gives the customer three options for payment. If you’ve had problems with a particular customer in the past, you may want to take a more direct tone.

When Unpaid Invoices Become Very Late Invoices

Depending on your plan and your patience, Very Late can be two weeks late or two months late. But you know the statistics now, so you realize that the longer this drags on, the less chance you will be paid.

The very late email is the last one you will send. Some people skip this step and go on to the phone, but maybe you’re not ready for that uncomfortable conversation quite yet. So here are some examples you can use to write your own very late email.

This first example maintains a friendly tone, but has several points we can learn from:

Dear ----,

I hope you have are enjoying a productive week.

Request: Payment or a phone call today to discuss payment options.

I noticed that your invoice is overdue by 25 days and wanted to reach out to make sure that you received our original invoice and my reminder email on 5/15.

I'm concerned that you may not be aware that your invoice is 25 days overdue to reach out to you immediately before a late fee of X% is added to your outstanding balance.

.. I have included it here just in case you hadn't received it or misplaced.

Could you please reply to me via email or call me directly at 800-908-1568 by the end of the day and let me know you received this?

As a reminder we do take payment by CC, direct deposit or with a check.

If you have any questions or concerns regarding the service we provided on 5/1 or on your outstanding balance please call me personally so that I can make sure that you have an excellent experience with us.

As always we are grateful for your support and loyalty.

Warm Regards,

Garrett Miller of cotria uses the format above. He points out exactly how late the bill is, and mentions a possible late fee. To make sure the customer read his email, he asks them to email or call by the end of the day. This model is warm, but still calls for action.

What Just Happened?

You took control of a bad situation.

The customer didn’t pay, and that sucks, but you did something about it. The information above gives you a lot of options, and concrete examples of how to carry them out.

Take what works for you, use it, and teach it to others. The next time a customer doesn’t pay, you won’t panic because you’ll be ready. You have a plan.

Unpaid Invoice Starts to Get Ugly

So what happens if nice emails don’t work???

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What to Do When My Invoice Payment is Late

letter reminding of payment

NURUL ANGGRAINY S.

NIM : 45216012

CLASS 3A D4 BUSINESS ADMINISTRATION

COLLECTION OF PAYMENT

1. Answer The Following Questions.

a. Why is the collection of letter important for the firm?

b. What do the reasons for the firm usually write the letter of collection?

c. What factors should be considered by the firm in deciding the tone of letter?

d. How many type of letter of collection do you know?

e. What do you have to state for the introduction, body and closing for each type of the letter of
collection of payment?

Answer :
1. Collection of payment letter is important for the firm because there has probably never a
trading firm whose accounts department has not bad to spend a considerable amount of time
in trying to get customers to pay overdue accounts
2. There are several reasons that make an account is not paid when due such as a buyer run into
a period of bad trade, find himself temporarily short of money, he may complaint about the
goods sent or midunderstandings may be caused by customs regulations to his country and
etc.
3. A factors/firm should be very wise to decide types of letter requesting payment in term of
tone or style of the letter. This will really depend on the kind of customer for whom it is
intended, how long overdue, how valuable business is, etc.
4. There are 3 of types of letter requesting the collection of payment.
5. – The first letter:
Introduction : This kind of letter will usually be friendly in tone, be accompanied by a
copy of account or invoice.
Body : Ask to inform that the payment will be overdue or is overdue on the specific
time.
Closing : Ask that we hope the customer can send/meet the payment ontime or on the
specific time we gave, and before we send the second reminding leter.
- The second letter:
Introduction : In this type of letter the writer has to mention about the previous letter sent
and proves that he has not received reply or payment from the customers.
Body : This body letter contain the information to follow up the first
reminding letter and to tell there some compensation if the customer stiil does not pay or
does not answer you letter at all. We also can give they the deadline time to sent the
payment.
Closing : Ask that we hope the ciustomer can send/meet the payment ontime
as required and before we send the last reminding leter.
- The third letter :
Introduction : Firstly, the writer has to review the situation from the time the
account should have been paid. Secondly, explain that you have been patient. Thirdly, let
the customer know what you intend to do, but do not threaten legal action unless you
intend to take it, as it will make you look weak and indecisi
Body : This body letter contain the information to decide that we will take
legal action and disconnect the relation if the customer still take it seriously.
Closing : Ask that we hope they can send/meet the payment ontime as
required.

2. Write A Letter Based On The Following Situation.


The letter to Panca furnishing has a heading, Office furniture this says what the letter about. It
will remind to the customer about the delay of payment of the invoice No. 82 45317 which is
overdue two months.
Answer :

ROSES OLYMPIC Ltd Co.


Palace Oasis 31 Hill, Canada SE21 AA01
Telephone (081) 866 1861 Fax (081) 866 1385
Our Ref. : Invoice No. 82 45317 4𝑡ℎ November, 2012

Mr. Ferry Juant


Purcashing Manager of Panca Furnishing Co.
Bredgrade 51, DK 1260
Copenhagen K.
DENMARK

Second Reminding Letter of Collection Payment

Referring to our first letter invoice No. 82 45317, reminding you to send delay of payment that
already overdue two months.

We are sorry to remind the second time that if you do not settle the invoice before January 4,
2013, we should ask you for the compensation 25% of the total payment as stated in our business
agreement.

Therefore, we do hope you can pay them before the deadline, so we can keep our good
cooperation..
Finally, we hope you have paid it before this letter arrive, but if you have sent it please disregard
this letter.

Yours sincerely,

Harry Pratama
Purchasing Manager
HP/NA

3. Complete the following letter? There are some missing expressions in the following letters in
each one.

Answer :
Dear Miss Spence

First of Collection Payment of Invoice 322/17

I reference the above invoice for 1, 453.43. (see attached copy) that it is now Two month since
we deiivered the goods.
Unfortunately, we has not received any payment of the invoice untill we wrote this letter.
Therefore, we expect you to have your payment as soon as possible.

Finally, we hope you can paid it before this letter arrive, but if you have paid it before you get
this letter, please disregard this reminding.

Mr. John Fosley


Accountant

JF/NA

4. Write a letter based on the following memo.


You have given a letter of first collection to supervisor at green supermarket Ltd. 13 Stadium Road
Dublin Ireland your manager has just sent you this memo.
ur Manajer Penjualan, Machmud Rachman signs the letter.

Answer :
WOOL WOOD SUPLIES CO.
21 Swanse Road, Swansea, Glamorgan 3ST 1DR
Telephone: 84451 Fax: 86651
𝐽𝑎𝑛𝑢𝑎𝑟𝑦 13, 2013

Mr. Farhan Sanjaya


Supervisor of Green Supermarket Ltd.
13 Stadium Road
Dublin Ireland

Second of Collection Payment of Invoice No. 81 45316

Dear Mr. Sanjaya

Regarding to our first letter on January 4, 2018 reminding you to pay the invoice No. 81 45318
before on January 10, 2018. We are sorry to remind you for the second time and ask when do
you can pay the invoice?.

Therefore, we should ask you for the compensation 25% of the total payment as stated in our
business aggreement.

We do hope you can sent the payment before the deadline, so we can keep our good cooperation.

Yours sincerely,

Ali Akbar
Financial Manager
AA/PS

Collection letter reminding an overdue payment to be made. Collection letters to business partners. Guide, letter example, grammar checker, + letter.

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letter reminding of payment

The most important thing is to avoid making your boss feel like he’s made a mistake. Consider writing him an email about something completely unrelated to salary. Anything relating to the work you do—a question or comment. Make it really positive, but not so much like you’re buttering him up— just nice. Toward the end, slip in something about salary as if you just thought of it.

Truthfully, this would be better executed in an in-person conversation, but I think that an email could work. Let me write an example:

Hello (insert boss’s name)

I hope you’re doing well. I am currently working on the Bunny Rabbit document. Am I correct in thinking that you want me to write on the topic of carrots? Or would, perhaps, fluffy tails be more appropriate? Again, I’d like to express my appreciation at your putting me on this project. Bunny rabbits hold a very special place in my heart, and I relish the opportunity to share about them via this document. By the way, I think some sort of error has occurred in the transfer of company funds to my bank account, as I did not see the receipt of this month’s salary. I wonder if it was a technological error in the electronic funds transfer?

Best,

(Insert your name)

Hope this helps, Mate. ;)

-Molly

WATCH THE VIDEO ON THEME: A letter to remind myself who I am.

The overdue payment reminder letter will remind the organization or an individual about what they owe to the business. The letter consists of important.

letter reminding of payment
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