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Past due balance letter sample

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Past due balance letter sample
October 10, 2018 Anniversary Wishes 4 comments

This collection of sample collection letters are for you to use as you see fit. account has a past due balance of {$} Previous attempts to collect the balance .


Most accounts receivable professionals barely have time to make all the phone calls necessary and send out every email, let alone make an individualized collection letter for every step of the collections process. However, following up every few weeks with a personalized letter requesting action from a non-paying customer truly helps to collect payment on time. Since every subsequent collection letter should change in tone and consequences of non-payment, we’ve created ready-to-use collection letter templates. Read on below to find out what every letter should say in order to collect payment as soon as possible.


Just because this is the first collection letter, this doesn’t mean this is your first point on contact with the customer. By now you have sent the invoice, sent due date reminders and let them know when the invoice has gone past due. The first collection letter should be sent out to the non-paying customer as soon as the invoice has gone past due.

Since this is only the first letter, it is important to keep the tone friendly, informative and professional. There are many reasons why the customer has not paid on time, such as never receiving the invoice or missing something important on the invoice. By giving them a chance for explanation before getting upset and pushy, you are able to keep a great customer-vendor relationship.

This first collection letter should contain the following information:

  • Days past due
  • Amount due
  • Note previous attempts to collect
  • Summary of account
  • Instructions- what would you like them to do next?
  • Due date for payment- it is important to use an actually date, not “in the next 7 business days” as this can be vauge
  • Your contact information

Dear ,

This is just a friendly reminder that your account is past due. According to our records your balance of $ is currently . We have emailed a detailed copy of your account statements. In the event you have not received these messages and documents, we have provided a summary of your account below.

We would much appreciate if you could let us know the status of this payment. Please contact us or send your payment of $[Insert Amount] to the address below by April 16, 2015 if you have not already done so.

If there is some error or you are unable to pay at this time, please contact me at so we can correct any errors or arrange for another payment plan. Thank you for your prompt response to this request and for your continued business.



The second collection letter can be a tough balancing act. While your tone needs to become more assertive since the first letter seems to have gone ignored, you still need to remain friendly towards to customer. Finding the gray area between assertive and friendly is always difficult.

The time to send the second collection letter is either two weeks after the first collection letter has gone ignored, or after a promise to pay from the first letter has gone past due.

The second collection letter should include:

  • Mention of all previous attempts to collect, including the first collection letter
  • Original invoice due date
  • Days past due
  • Invoice number and amount
  • Instruction- what should they do next?
  • Offer help to work on the payment terms
  • Hint at the impact non-payment could have on their credit terms/ratings
  • Your contact information

Dear ,

At this time we have not yet received a payment in regards to nor have we gotten a response to the letter sent on . Your accounts is now days past due and you owe a total of .

As a valued customer, we would like to help you quickly remit payment to avoid any actions that could damage your credit rating or future credit limits with our company. If there is any reason you are unable to pay in full, please contact me at and I would be happy to talk about arranging a payment schedule that is mutually agreeable.

Please get in touch with me immediately if you would like to work out a payment schedule, otherwise please submit your payment of by . We can accept your credit card information over the phone, through our online payment portal, or I have enclosed a self-addressed envelope for your convenience should you choose to send a check in the mail.

Thank you in advance for your prompt response to this letter and for your continued business.



At this point, you have now sent multiple letters and made multiple attempts to collect. For every week that an invoice goes unpaid, the likelihood of not collecting on the full amount increases. For this reason, the tone of this letter will be very different than the rest. You will be notifying the customer that if they do not pay immediately, you will be forced to refer their account to a collections agency or involve a lawyer.

Although the third collection letter can be quite frustrating, it is important to continue to remain professional. By simply stating the facts and what the impending consequences

The third collection letter should include the following information:

  • Mention of all previous attempts to collect
  • Invoice number and amount
  • Original invoice due date
  • Current days past due
  • Instructions on what they should do next
  • A warning of the impending consequences
  • Your contact information and final request to contact you

Dear ,

At this time we still have not heard from you in regards to invoice which was due on nor have we gotten a response to the letter sent on , the letter sent on , or our numerous attempts to call and email you. Your accounts is now days past due and you owe a total of $.

I regret to inform you that unless we receive payment in full by or work out an agreed upon payment plan by this date, we will have to turn your invoice over to a collection agency and/or our attorney.

I hope to hear from you before this action must be taken to avoid damage to your credit rating or our future business relationship. Please contact me immediately at so we can get this matter settled.



With this final collection letter, you have now done everything you can and are simply letting the customer know that the matter is no longer in your hands. Although it is not mandatory to let the customer know that their account has gone into collections or turned over to a lawyer, it can help to keep the relationship in good standing and make a smooth transition. This also gives you a last final attempt to collect, and when lawyers are involved, people usually start to hustle.

This letter is significantly shorter than the others because it is simply a notification letter. It will serve as proof of the multiple times the customer was contacted, the invoice in question and the amount that is due. Remember: even as the final notice, you still must remain professional.



At this time we still have not heard from you in regards to invoice for $ which was due on . Nor have we gotten a response to numerous phone calls, emails, or the letters sent on , , or .

Because we have failed in our attempt to work this out with you directly, I regret to inform you that we have reported this issue to the credit bureau and turned this invoice over to a collection agency who will be in contact with you in regard to the payment of this invoice.



Are you struggling with getting customers to pay on-time? Download this whitepaper analyzing the most important capabilities when researching credit & collections software and how quickly you can see a return on your investment.


a payment that is past due you can use this letter template to tactfully request Our records indicate that you have an outstanding balance of [$Amount] with a.

5 Past Due Letter Samples to Remind About Late Payments

past due balance letter sample

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Sample Billing Letters for Past Due Balances Over $250

past due balance letter sample

Is sending collection letters a challenge in your small business? You're not alone. Many business owners don’t know how to write a collection letter or have a sample they can use as a reference.

Collection letters should do two things: 1) retain customer good will and 2) help you get paid. You know a letter is working when you send out a batch of letters and your phone rings off the hook or payments start arriving in the mail. If you send out a batch of letters and there is no response, it’s time for a new collection letter template.

In order to understand the best practices of letter creation, a sample collection letter is available below. 

An Example of When to Use a Collection Letter

Sales just haven’t been what they were last year at this time. Frank shook his head as he looked over the aged trial balance print out, he knew he faced an uncomfortable job that was now a necessity if he wanted to stay in business.

With the collection of letters written by an expert guiding him he knew just what to do. “Send earlier rather than later,” the expert had commanded. Frank took his pile of past due invoices and started inputting customer information into the collection letter templates. As Frank worked his way through the pile, his confidence grew with the thought of getting paid this money that was owed to him.

Sample Collection Letter

Franks Plumbing
123 Main Street
Anywhere, NH 05000

Account# or Invoice #:123
Balance due or Past Due Balance: $100.00

This is a reminder that your account balance of $100.00 was overdue as of November 28, 2008.

Please pay this amount today, I have enclosed a stamped payment envelope for your convenience.

Thank you for your payment.

Frank Smith
Franks Plumbing

As you can see from the sample collection letter above, the most effective collection letters are short, to the point and easy to read. Try to avoid long or confusing words and sentences. The more direct letter leads to fewer misunderstandings.

Collection Letter Tips

Your collection letter should:

  • Tell the reason for your letter in the first sentence
  • Explain more about the first sentence in your second sentence
  • Suggest a solution
  • Thank the recipient

Your collection letter is a reflection of your business, so keep it professional and be sure to sign each letter personally. Remember that your letter is to persuade someone to send you money. Your wording and tone are critical, especially if this is a customer you want to continue to do business with. Always assume the customer will pay.

Enclosing an envelope for payment is also a good idea. If you can include postage on the payment envelope, that is better. The easier you make it for the customer to make the payment, the better your chances are of getting paid.

Michelle Dunn helps companies that want to have customers that pay on time or early, she works with companies that are struggling with customers that pay late or don’t pay. Michelle has over 21 years experience in credit & debt collection, is the author of “Become the Squeaky Wheel, a credit & collections guide for everyone” and many other books and possesses a depth of knowledge and a whole tool kit of products and services that can make a big difference for your company.

Sample Past Due Reminder Letter. Use this sample letter template when you have an account that is past due and wish to request payment immediately.

Writing a past due letter: samples for professional letters requesting payment

past due balance letter sample

When someone has a loan out, they need to make payments on a set schedule and they have to be sure to pay off that loan according to the plans that they made when they took out the loan. Those who have agreed to pay off a loan on a set day or to make their payments according to a set schedule and who do not stick to that must receive a letter that lets them know that they are off track. They need to receive something that will push them to pay what they owe, and they need to be reminded of what can happen if they do not do that. Past Due Letter Samples can help those who are looking to remind the borrower that they have a payment that is past due.

When you are trying to let someone know that they need to make a payment right away, you can write up a letter telling them that. The letter that is created should let the individual know what is going to happen if they do not pay up. They might need to pay extra because they are late, fees that are given to those who do not pay on time, and the letter should share that information. If you are writing up this kind of a letter, then the past due letter samples will help you out. Using the past due letter samples that are available will help you write words in a professional way.


These past due letter samples are available free to download for those who are looking to write up letters that will be taken seriously. These samples also include 1st, 2nd and 3rd reminder letter which can be customize as per your requirements.

Past Due Letter Samples and Templates


10 days past due payment notice example


Friendly Past Due Payment Reminder Template


Friendly Past Due Invoice Payment Reminder


Past Due Payment Reminder with Offering Flexible Plan on Next Payments


Final Past Due Payment Reminder Example with Warning of Credit Reporting Agency


WATCH THE VIDEO ON THEME: Credit Repair: 609 Credit Repair Letters

You should only send this first past due letter template after you've tried send this letter at least 14 days after the due date of the invoice.

past due balance letter sample
Written by Gulabar
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