As a rule, we think that customers do not like receiving payment reminders. However, studies have shown that payment reminders are actually a cost-effective way of prompting customers to pay outstanding bills. Although many consider it nagging and unprofessional, some people really do depend on reminders—for these people, reminders are a necessity.
You might be debating about whether or not you should send a payment reminder. When deciding to send a reminder, you will have questions about how often to send them, what the right way is, and what sort of language should you use when drafting a message. In this article, we will explore all of these and how sending payment reminders helps your business scale and provide a few examples.
Sending overdue payment reminders is not a one-time task. You need to send at least two reminders before proceeding with the legal action. The framework of an overdue payment is as follows,
- Send a friendly reminder before the due date
- Friendly reminder on the due date
- First reminder
- Second reminder
- Third reminder
- Final warning
1. Send a friendly reminder before the due date
The friendly reminder before the due date serves as a considerate heads-up to recipients about an upcoming payment obligation. You can send it before a few days to a week in advance. It should contain a courteous message, reiterate the due date, and may include the invoice details or a summary of the outstanding amount. The tone is positive, aiming to prompt timely action without creating undue stress.
| Subject: Reminder from [BUSINESS NAME]: Your Invoice [INVOICE #] Payment Due Soon!
Hi [CUSTOMER NAME], I trust this message finds you well. Just a quick note to remind you that the upcoming payment for your invoice [INVOICE #] is right around the corner, scheduled for [PAYMENT DUE DATE]. To make things super easy for you, We’ve reattached the invoice – feel free to give it a quick glance. If you have any questions or if there’s anything we can assist you with, don’t hesitate to reach out. Your satisfaction is our top priority. When you’re ready to make the payment, we offer a variety of hassle-free payment methods, including [PAYMENT METHODS]. We want to make this process as smooth as possible for you. Thank you so much for choosing [BUSINESS NAME]. We truly value your business, and we’re here to help in any way we can. Best regards, [BUSINESS NAME] [Contact Information] |
2. Send a friendly reminder on the due date
Sending a payment reminder on the due date serves as a last-minute nudge to ensure that the recipient is aware of the payment deadline. The message may express appreciation for prompt payment and provide any necessary information to facilitate a smooth and timely transaction.
| Subject: Friendly Nudge: Invoice [INVOICE #] Payment Due Today!
Hi [CUSTOMER NAME], Time flies! Your Invoice [INVOICE #] payment of [$0.00] is due today. A big thank you for keeping everything on track! You can process the payment using [CASH, CREDIT CARD, ONLINE PAYMENT]. Need assistance? We are just a call or email away. Thanks again, [BUSINESS NAME] [Contact Information] |
3. First reminder for overdue payment
The first reminder can be sent after a week and is intended to be polite and non-threatening. The template will usually include the invoice number, the due date, the amount owed, and a request for payment.
| Subject: Important: Invoice #[Invoice Number] Payment Required
Hi [Customer Name], Hoping this message finds you well. We’re reaching out to remind you of the overdue payment for Invoice #[Invoice Number], originally due on [Due Date]. The outstanding amount is [Amount Due]. Presently, the invoice is [Number of Days Overdue] days past due. To avoid any further late fees, we kindly request your immediate attention to this matter. Online payment can be conveniently made at [Payment Website], or you may choose to mail your payment to [Mailing Address]. Thank you for your swift response. Sincerely, [BUSINESS NAME] |
4. Second reminder for overdue payment
The second reminder template is used for invoices that are still overdue after the first reminder. This can be sent after two weeks. The template will typically be firmer than the first reminder and may include a late fee or other penalty.
| Subject: Urgent: Invoice #[Invoice Number] Payment Still Outstanding
Dear [Customer Name], I hope this message finds you well. This is the second reminder regarding Invoice #[Invoice Number], which remains overdue for payment since the original due date on [Due Date]. The total outstanding amount, including late fees, is now [Updated Amount Due]. As of today, the invoice is [Number of Days Overdue] days overdue. To avoid any further escalation, we urge you to remit payment immediately. Please note that in accordance with our policy, a late fee of [Late Fee Amount] has been added to the total amount due. You can settle the updated payment online at [Payment Website], ensuring the inclusion of the late fee. Alternatively, you may mail your payment, taking into consideration the updated amount, to [Mailing Address]. Your prompt attention to this matter is imperative to prevent any additional fees. If you have any concerns or require assistance, please do not hesitate to contact us. Thank you for your immediate cooperation. Sincerely, [BUSINESS NAME] |
5. Final reminder for overdue payment
A final reminder is used as a last resort before taking legal action. This can be sent after a month. The overdue payment template will typically be very formal and will give the customer a deadline to pay the invoice.
| Subject: Final Warning: Invoice #[Invoice Number] Payment Overdue
Hello [Customer Name], This serves as the final warning for Invoice #[Invoice Number], which remains unpaid since the due date on [Due Date]. Despite prior notices, the invoice is [Number of Days Overdue] days overdue. The total amount due, now including a late fee of [Late Fee Amount], is [Updated Amount Due]. Immediate payment is required to avoid further escalation, including potential collection proceedings. You can settle this online at [Payment Website] or by mailing your payment to [Mailing Address]. Please act promptly to prevent any adverse actions outlined in our terms. Thank you for your urgent attention. Sincerely, [BUSINESS NAME] |
Benefits of sending payment reminders
There are many benefits to payment reminders, so don’t hesitate to send a reminder to your customers. The benefits of sending payment reminders are tremendous, so don’t hesitate to send an overdue payment reminder to your customers.
- Encourages timely payments
- Customer-friendly approach
- Clarifies billing details
- Ensures stable cash flow
- Maintains customer satisfaction
1. Encourages timely payments
Payment reminders serve as a nudge to customers, reminding them of upcoming or overdue payments. This ensures ensure that payments are made on time, but that is not the only benefit. advantage. You are also helping help your customers to avoid late fees and penalties. escape the risk of late fees and or penalties.
2. Customer-friendly approach
Sending a friendly reminder communicates to customers that the business values their relationship and wants to work collaboratively. It is a proactive and customer-friendly approach to managing financial transactions. By sending payment reminders, you maintain a positive relationship with your customers.
3. Clarifies billing details
In some cases, customers may be unclear about the details of their invoices. Sending a reminder provides an opportunity to clarify any questions or concerns they may have about the billing, avoiding misunderstandings and disputes.
4. Ensures stable cash flow
Timely payments contribute to the stability of a business’s cash flow. By reminding customers to pay on time, a business can better manage its financial resources and obligations..
5. Maintains customer satisfaction
A well-managed payment process contributes to overall customer satisfaction. When customers know what to expect and receive timely reminders, it enhances their experience with the business. However, sending a reminder is not enough. In order to benefit your customers, reminders should contain all invoice details and include a link for payment.
Save time spent on drafting Emails with Zuper
Zuper has simplified email reminders by integrating email templates, making it a breeze to stay in touch with your customers. With ready-made templates, you can quickly reach out to your customers without delay. You can even make your own templates and save them for later. Now, there’s no need to make customers wait while you create new emails every time. Just pick from your saved templates the one that fits your purpose and send it to your customers. What’s even better is that this feature is available in Zuper’s jobs, quotes, and invoices modules, making everything extra convenient.
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